Trading options requires knowledge. It's important to know as much as you can about the mechanics of the market and the best ways to set your positions. Option education is critical to success, but as the adage goes, a little knowledge can be a dangerous thing. If you're considering whether or not to brush up on your trading education, beware of situations where option education can go horribly wrong.
Tip Sheets
Trading tips and tip lines aren't "option education." In fact, many of them are worse than useless. While there are certainly worthwhile tip newsletters and sites that give you a head's up on stocks to watch, options to consider and important information, a lot of so-called trading "tip of the day" newsletters or websites are about as useful as a magic eight ball. Before you sign up, learn all you can about the trader behind the tip sheet. And always research the tips you get before you jump on them.
The Wrong Mentorships
Mentorships can be an incredible opportunity for a trader-in-training - or a huge handicap. One-on-one mentorships are expensive, so you should conduct serious research about the person who will be mentoring you. Option education from a guy with no real history in the actual marketplace could be catastrophic. Check out your prospective mentor's bio, and dig into his background to make sure that the person is really who he says he is.
Courses That Don't Teach You Anything
Paying good money for an option education course, and then finding a dearth of new information - no new insights, no new information, no discussions - is a waste of your time and money. When you're shopping around for option education courses, read the course descriptions carefully to make sure that the course will cover information you want to learn, not information you already understand.
Courses That Leave You In the Dark
The flip side of taking a trading education course that's too easy is taking one that's far above your level. Again, the only cure to this problem is to read the course description before you sign on the dotted line. If you're a beginner, you won't understand a course on complex trading strategies. In fact, you'll feel as if you're trying to learn something presented in a foreign language.
The wise options trader understands that continuing option education is a good way to stay mentally sharp and learn new strategies - but it's important to match the courses you take with your goals, aims and your current knowledge. Before you sign up for any trading education courses, take the time to research the background so you make the best choice.
Tip Sheets
Trading tips and tip lines aren't "option education." In fact, many of them are worse than useless. While there are certainly worthwhile tip newsletters and sites that give you a head's up on stocks to watch, options to consider and important information, a lot of so-called trading "tip of the day" newsletters or websites are about as useful as a magic eight ball. Before you sign up, learn all you can about the trader behind the tip sheet. And always research the tips you get before you jump on them.
The Wrong Mentorships
Mentorships can be an incredible opportunity for a trader-in-training - or a huge handicap. One-on-one mentorships are expensive, so you should conduct serious research about the person who will be mentoring you. Option education from a guy with no real history in the actual marketplace could be catastrophic. Check out your prospective mentor's bio, and dig into his background to make sure that the person is really who he says he is.
Courses That Don't Teach You Anything
Paying good money for an option education course, and then finding a dearth of new information - no new insights, no new information, no discussions - is a waste of your time and money. When you're shopping around for option education courses, read the course descriptions carefully to make sure that the course will cover information you want to learn, not information you already understand.
Courses That Leave You In the Dark
The flip side of taking a trading education course that's too easy is taking one that's far above your level. Again, the only cure to this problem is to read the course description before you sign on the dotted line. If you're a beginner, you won't understand a course on complex trading strategies. In fact, you'll feel as if you're trying to learn something presented in a foreign language.
The wise options trader understands that continuing option education is a good way to stay mentally sharp and learn new strategies - but it's important to match the courses you take with your goals, aims and your current knowledge. Before you sign up for any trading education courses, take the time to research the background so you make the best choice.