Knowing that you can make a lot of money from trading options can be very exciting. Many have the experience of jumping the gun and discovered painfully that they have lost all the money simply due to ignorance. The answer is patience and the discipline to follow through a simple trading plan.
My objective here is to share some thoughts with you so that you will not fall into some of the options trading traps in becoming a successful options trader and be financially well.
Before you begin trading options it’s critical to have a clear idea of what you want to accomplish. Options can play a variety of roles in different portfolios.
This is a system I have created, tested and have been using regularly. It is highly effective in finding and identifying reversal trades which are of high probability of making profits. It is a very simple system which incorporates some technical indicators and some understanding of some basic Japanese Candlestick charting.
However I want you to remain as open minded as possible and not to let what you have learned before to judge the effectiveness of this system as some ideas may contradict to your trading philosophy.
Here are four rules that you are required to remember at all times in order to begin your journey in becoming a successful options trader.