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Using Options as Your Trading Tool

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There are different ways to trade the financial markets.

You might want to simply BUY Stocks and Shares or you might want to use a leveraged product to trade the different instruments.

The advantage of using a leveraged product is you can control a position in a FOREX pair, a Stock, Commodity or maybe even a Stock Index without needing anywhere near the amount of capital you otherwise would need. This means your returns can be considerably greater in percentage terms of capital employed however the disadvantage is your losses can also be greater.

No matter what you are trading once you enter a trade you are taking on risk. With a non-leveraged product, you can only lose what you have paid for it but with a leveraged product it must be said it is possible to lose more than the original cost. Knowing your RISK and controlling it is the most important thing a trader must do when trading. Without this happening it is impossible to have trading success.

leveraged products are widely available today to retail traders. These might be CFD’s (Contract For Difference) that gives you a leverage to trade shares, forex, commodity or indices. You might prefer the Futures market for leverage to trade similar markets but the one tool we find particularly interesting for part of our trading is the OPTIONS market.

OPTIONS:

Options might be a foreign word to some but when used correctly they can be a very effective tool for getting leverage with controlled risk.

Options can be used to trade speculatively, or they can be used as a hedging tool to cover risk on positions held in the open market.  For example you might own shares that you want to hold as a long term investment. Those shares might not be doing as well as you expected but you still feel they are going to be ok in the long term. Entering an OPTIONS trade to protect these might make a lot of sense.

Ian, our founder, and lead educator has been trading options for many years and he enjoys using them as a tool to use on some instruments. For example he uses OPTIONS to trade the US share market.

The two kinds of options are CALL options or PUT options.

A CALL option is if you believe an instrument is going to rise.

A PUT option is if you believe an instrument is going to fall.

There is much more to OPTIONS trading than this and many are put off from learning to use options as a tool because they think they are too complicated to learn. Yes, they are more complicated than the straightforward than entering trades on the futures or spot forex markets but they have advantages that both those markets do not have. Some people try to make options trading complicated. We simplify options to as simple as they need to be in order to use them correctly. There is no need in any trading method to make it over complicated. Our philosophy is always to keep things simple, or at least as simple as possible.

One great thing about using options as a trading tool is you can be wrong in your trading direction and still be profitable when using some strategies. Imagine! This is 100% True!

Ian has developed an OPTIONS course that begins with learning the very basics of options right up how to use strategies that have low risk but high potential rewards.

Take a look below at what this course covers…..

  • What are Calls and Puts. How do they work and how are they priced. The pitfalls to look out for.
  • How to pick the correct strike prices and the best time to execute the trade.
  • Learn how to use volatility in order that you know the best strategy to use at that time.
  • Learn to know when the best time to exit an options strategy trade in order to maximise gains and minimise risk.
  • Learn how to read a brokers option screen and how to enter your trades on the same.
  • How to setup trades that create a regular income.

This is only a few topics Ian covers in his OPTIONS course.

This is your opportunity to learn how to use OPTIONS as a trading tool.

It is taught in a very hands-on way with lots of interaction.

If you have an interest in this options course please sent an email to info@beawinningtrader.com with your contact details.

We will reply with more details.

This is a course that anyone willing to put the effort in will thoroughly enjoy and will clearly see how OPTIONS can be beneficial to them in their trading.