Hello everyone i am new to trading in general. I opened an account with TD and not sure how to proceed. Based on my research i think options is the best way to go. If i am in the wrong place please let me know. If i am in the right place i look forward to learning from everyone here. Thanks for your time.
New Here
- Thread starter Chala
- Start date
Baron
ET Founder
Define "best way to go". Although you can certainly make a higher percentage of profit for a given amount of capital using options versus buying the underlying outright, you also have to deal with option decay over time. And that's why many guys find options difficult because of needing to be right for the most part in both direction and time.
If you are absolutely new to trading, options is not the first thing I would try. Options trading can be very complicated. For example, I know someone who bought call options on a stock before earning, not looking closely at the IV. The stock went up but he lost money because the IV went down. I would look into futures, especially the mini futures, to get started.
I would look into books to get started.
I am looking for short term quick returns for now. Later on i can exercise more patience. I have seen a couple of friends showing me how they have accomplished such, as in short returns.
the more i read up on it the more complicated it gets. I just started reading up this week, i already twice this week was going to give up. Are mini returns profitable in the short run?
Books are not going to work for me as it pertains to options unless easy to follow charts are involved. I have already read two books and i am still lost.
No way are futures better than options. Futures can be death by a thousand cuts - getting stopped out of your position, only to see it reverse without you.
With options you don't get stopped out. QQQ options would be a good place to start, and study the Yahoo Finance option chains.
Why on earth would you get into trading derivatives if you can’t even read basic option theory without getting lost? Why do you want to burn yourself so much? Let me tell you, and I know someone else will here too, that you don’t just wake up one day after watching wolf of wall street or whatever that got you into ”trading”, and start trading. Let alone start trading derivatives. There are people who have devoted years and years into studying the theory of options and still don’t make it in the industry. So if you think you can magically just start trading options and make money, well don’t get disappointed when you realize it isn’t that easy.
My point is not saying you can’t do it nor that you shouldn’t, but I would educate myself for atleast an year before trading real money.
But hey you do you
One guy telling to start trading futures, other guy saying futures are ”death by thousand cuts” meanwhile saying you don’t ”get stopped” trading options.
I like where this is going.
I like where this is going.
Option theory is grossly over rated, and not required to trade options. You don't need to know why your car engine runs to drive a car.
Love it! Especially considering your nickname.. How do you trade options if I may ask? Why not just trade the underlying, leverage? Also, let me guess you are a big fan of the "wheel" strategy?