2007-03-15 07:06:12 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
All you really need is a healthy bank account because you will probably deplenish it very rapidly.
2007-03-15 07:54:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you know what investing in stocks is, if you have been following markets and investing/disinvesting in stocks then probably it's logical for a person to think in terms of Futures and Options trading.
Yes, if you need to start the trading you must learn something about the same. But it surely doesn't require any special or exotic training. It will only lead you to more confusions in your mind. But you MUST know basics of the options and pricing in particular. There are several websites and books providing this information in depth. Don't delve deeper on spreads et al. Stick to the basics.
Please note that the entire Futures and Options was designed to provide an investor some hedges for the investments in equity/stocks. But more and more people are trying to earn in large sums by dealing in F&O, which basically goes against the main aim of desinging the product and hence the losses that the people suffer.
Best luck.
2007-03-15 19:30:13 · answer #2 · answered by Nitin G 7 · 0⤊ 0⤋
Options & derivaties is a real tricky bussiness.If you have mastered the (study of fluctuations) stock market,only then you can operate in derivatives trade.It is true that the initial investment for a lot,is lower in options than in the share market but the risk is greater too.Still if you wish to operate in derivatives then you must first consult someone more knowledgible.
2007-03-15 07:21:04 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Trading is a business. As in every business, if one wants, one can start from scratch but he has to pay for his lack of experience either in terms of time or money or both. So before you try to jump into option trading business you should equip yourself with as much knowledge as you can.
Options are complex derivatives and one must know much about them before touching them for trading. Trading options can be for a living but profits just cant jump into our accounts without putting hard efforts.
So my suggestion is that you should first equip yourself with the trading business knowledge, subscribe to some free quote and chart service, make a trading plan, backtest it, start paper trading and if you feel that your trading plan is successful both in monetary terms and more importantly psychologically you are comfortable with it, only then you should put your hard earned money into trading.
Helpful sites for Trading education.
www.rb-trading.com (for general trading knowledge)
www.cboe.com (for basic option education)
www.optionetics.com (for both basic and advanced option education)
www.alaron.com (for quotes and charts)
www.cbot.com (for quotes, commentry and trading education)
www.stockcharts.com (for basic and advanced technical analysis)
If you find this information helpful then tell me I will try to name some books that in my opinion are must read for an option trader.
Best Regards,
Shiraz
2007-03-16 03:25:18 · answer #4 · answered by Shiraz 1 · 0⤊ 0⤋
Yes, options are completely different than stocks. Success in one doesn't mean success in the other; its two different skill sets.
To judge if you are ready, look at the two images in the thread at http://einvesting.com/viewtopic.php?t=4663
If you don't understand them, you aren't ready to options trade.
Best of luck.
2007-03-15 08:11:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Only if you don't want to lose all your money.
Option's trading can be very risky since it's done on margin and has a time constraint.
2007-03-15 07:32:14 · answer #6 · answered by joe s 6 · 0⤊ 0⤋