Options: The Trader Journey- First Steps

This is a nest of vipers, and in my limited research I came across http://startupbros.com/make-lose-2000000-day-trading-system-story/ This makes interesting reading as an impassive observer, and has very little to do with us. For the following reasons:

• We do not try to make quick profits
• We seek to optimise our trading by using strategies as opposed to ‘win or lose‘.
• We are highly unlikely to have catastrophic losses, but may have spectacular wins, though our aim is consistent profits.

Options trading requires education before you can open an account,  otherwise you will just be betting with a spreadbet firm. Anyone can open a spreadbet account but we don’t know anyone making money with options strategies as the pricing works  heavily against you.( Strategies that produce a credit on the exchange do not work as spreadbets)

Smart Money Beats Dumb Money, Eventually, Always

When I started trading there was little education around so I paid for a course, which was limited but helped me on the journey. Online learning is no substitute for the classroom, which we’d like to do sometime. We have links  to various facets of trading education on this site, they are really worth a look.

So, the trader journey-the following are personally recommended views.

1. Education costs time(always)and money(not always) lack of education is 100% guaranteed to cost money. EVERY great trader had a mentor, it’s just too hard to find your own way. Support is needed continually.
2.  Find something that you like. We trade FTSE index options only but you may have a feel for shares, or other markets.
3.  Paper trade(simulate without placing real money but using real prices), do NOT trade until you have paper traded -if possible 100 trades. This requires time, diligence and honesty, though the market will make you honest faster than you can sneeze.The difference is, the market will take away your cash. ( I paper traded for 2 years waiting for a property sale, and never had a losing trade. My 1st real trade made £££, my 2nd lost ££££!) I had failed to paper trade honestly.   Fact is that many trades get missed-we are imperfect, but in virtual trading you get all the winners and hardly any of the losers.
4. Get advice on opening an account-there are very few options brokers in the UK. Online accounts for the US may require as US postal address and W-8 tax declaration.
5.  That’s enough for now, Next Steps will follow soon.