WHY OPTIONS:
Traders trade options for many reasons, but mainly do because they can participate in markets where they normally could not when trading futures contracts. For example, the futures margin required to trade one futures contract in the Japanese Yen is currently $3760.00. However, the option trader can purchase options on the same contract for $300 - $500 with no extra margin required to purchase them.
Another popular reason for trading options is the limited risk factor. For example, there is unlimited risk when trading futures contracts, but your risk is confined to the premium cost when purchasing options.
Other popular reasons include: Not having to always be right about a market's price direction, your trade entry and exit can be off, and, in many cases, you are guaranteed a profit!
In short, option trading gives us even more leverage over futures contract trading while at the same time limiting our risk to the cost of the option; you can't lose any more than that!
These reasons are why I say that the new or not yet successful traders have the best opportunity to build a small trading account by trading options.
Not any old option will do. We have to be very selective in our trades to further reduce risk and dramatically increase our profit potential.
In tomorrow's lesson I'll show you how to purchase options that have the highest probability of profit, and more importantly, show you the options not to purchase because they have little chance of becoming profitable. You don't want to miss it!
If you are ready to take charge of your own trading and increase your chances of successfully trading options, take a look at what I offer my students. You'll learn simple option trading strategies that guarantee your success or your money for the course will be refunded! You'll get to see me put my neck on the line everyday as I trade these simple strategies in real-time with my OPTION ALERTS AND CHARTS. There is truly no better way to learn!
Take care.
Archie Johnson
Virtual Trading University
Where Successful Options Trading Begins================================================
LOW-RISK OPTION TRADING & OPTION ALERT EMAILS
Finally, an easy to understand option course for beginners and not yet successful traders. Designed to give short funded traders a trading edge by limiting losses and increasing probability of profits.
Get it today and save an additional $100 off the regular price!
Disclaimer - I am not a commodity trading advisor. The information on this site is for trading education only. There are no trading recommendations for any one individual made on this site and this information is paper trades for trading education. All trades are extemely risky and only risk capital should be used when trading.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.