"Options Trading is growing faster than any other form of trading. Most new traders don't stand a chance at success."
Are you fairly interested in venturing into a career trading options? Are you the type of individual who sticks to a long term point of view and desires to enrich yourself by means of working on a business endeavor? The options trading market is yet another huge place and that means you must be able to keep emotions and personal problems out of your trading because there are millions of others trading with and against you who will.
The first thing you need to work on is learning the fundamentals of options trading (I'll help with that below) the 2nd thing is finding and perfecting a personal options trading strategy or strategies.
There is nothing better than getting to know the options trading indicators that work best for your style of trading, if you are one of the lucky traders who learn and recognize this from the onset, you are in for a fun and profitable ride, because They are the ones that will actually bring forth the signals and let you know as to whether or not the market is ripe for what you want or intend to do in it. They are also the ones that will inform you of the trends and how they are about to perform in the market.
All indicators and signals are just educated guesses but the proper use of them can take your trading farther into to a skill than a gamble. You know how everyone gets happy at the Poker table when a player comes who isn't very good or new to poker? Well that's what you are until you learn the fundamentals of trading options and using indicators, The new guy or Mark at the table of trading options.
1. Options give the investor the right to buy or sell the underlying asset or instrument.
2. If you buy options, you are not obliged to buy or sell the underlying asset, you just have the right to. Meaning, you can choose to buy the options, sell the options or do nothing and let it expire, depending on what is most profitable to you the trader.
3. Options can be either call options or put options. Call options give the power to the buyer to buy the options. Put options give the buyer the right to sell the options. This sounds simple but it is far more difficult to use to make profits. It's like the object of the game in Black Jack is to get as close to 21 as possible but in practice it is far harder.
4. Options are quoted per share, but are sold in 100 share lots. Meaning, if the investor purchases 1 option, he or she is buying 100 shares. This was one of the things I often forgot in the beginning, it really took me a while to "get" that in a way where it stuck in my calculations.
A binary option is a simplified derivative . A derivative is a security whose value is derived from another financial instrument. Types of derivatives include options, swaps and futures. Derivatives are typically complex instruments that are only used by and available to sophisticated investors and financial institutions. However, binary options are very simple to understand, and available to everyone.