why trade stock options?

One of the many benefits of interacting with traders on a daily

basis is the opportunity to see which markets are showing the best results.

Without fail I continue to see the highest success rate with stock

options traders.

Many traders are intimidated by the options market. They view options as

advanced products and they don't want to mess with that.

The fact is that options are not as

difficult as you may think

When you dive into more detail you will see that options provide all the great features of markets like Forex and futures and much more. Stock

options are the most flexible financial products available hands down.

Let’s walk through a few basic steps that can get you trading options very quickly.

Step 1: Trading System

Talk to any successful trader and you will find that they have a detailed

system in place that they follow on every trade.

Trading options are no different. You have to have a system in place telling you when

to get in and when to get out.

There are many trading systems available in the marketplace that claim to give you an edge. The big key here is to have a system that prints entry and exit points right on the charts for you.

You don’t want a system that requires a lot of discretionary decisions to be made.

You also want to use a system that works on all stocks and ETF’s. You don’t want to be limited to a few

products. Markets change and you want a system that can adjust to those

changes quickly.

This is the only way you can stay disciplined to your system.

One of my favorite setups is part of the NetPicks Options Mastery program.

It is our reversal setup which takes advantage of market extremes. I’m willing to share this setup with your

free of charge.

This will give you a chance to see what it looks like to use a system that gives

clear entries and exits in real time.

http://www.premiertraderuniversity.com/freeoptionsreversal

Step 2: Learn the Options Basics

Traders can be intimidated by options when they start to hear about pricing models, the greeks and strategies like

Iron Condors and Butterflies.

While these topics can be beneficial, it is not necessary to master the

advanced topics before you get involved with options.

Starting out with basic bullish and bearish strategies is a great starting

point. With our Options Mastery Reversal

Setup you will see clear long and short setups.

Sticking with the basics, we talk about buying calls (or call spreads) to play a

long setup and buying puts (or put spreads) when playing a short setup.

This will allow you to take trades on stocks/ETF’s for as little as a few

hundred dollars. This leverage will open doors for the retail traders to

look at stocks and ETF’s of all prices.

Step 3: Use an Options Platform/Broker that will help you

select the best options

There are dozens of potential options brokers out there that will allow you to

place options traders very quickly. They are not all created equal.

You want to use a broker that will give you the tools that will help you place the best trades. My favorite broker

platform to use is Thinkorswim by TD Ameritrade.

The platform does not charge platform or data fees and provides tools to help

quickly identify the best options to trade which is a huge selling point.

When you combine the Options Mastery Reversal System with the

Thinkorswim platform you will be able to take trades in a matter of minutes. I

can identify and take my options trades in 20 minutes a day. This allows me to move on with my day to get to

other things.

Step 4: Establish a watch list of Stocks/ETF’s

The biggest mistake traders make is jumping around between different

stocks and ETF’s on a daily or weekly basis.

This will lead to chasing performance and very inconsistent results.

I like to take the opposite approach by looking at the same small list of

products day in and day out. This allows me to get to know the products

that I trade.

Stocks/ETF’s each have their own personality which means getting to

know these personalities allows you to trade with more confidence.

I like to get a good mix of stocks/ETF’s on my watch list. My list includes some

of the most liquid options markets available. I’m not trying to reinvent the

wheel with my trading. I’m trying to trade the most liquid names with basic

options strategies.

Here is a list of 10 of my favorite symbols.

As a result I have been able to grow my account consistently

over the past 10 years.

Step 5: Continue to expand your Options Knowledge

We talk about sticking with the basics initially with your options trading by using basic call and put strategies.

The nice part about options is if this is as far as you go you can be very

successful with your trading. However, we mentioned earlier that options are

the most flexible products in the world.

As you start to master the basics then you can start to move on to other

options strategies that allow you to profit in all types of market conditions. You can use options strategies like Iron

Condors and Butterflies to profit in sideways markets when most traders

are pulling their hair out.

This is a great point to reach because you can focus all your attention on

trading the same products regardless of what the market is doing.

Options markets continue to gain in popularity which is a huge selling point

given that volumes in many other markets continue to fall off a cliff.

When polling traders that attend our educational webinars we see the highest success rate with options

traders.

If you are someone that wants to focus on the areas that give you the highest odds of success then you need to get involved in the options markets. Start

slow and then ramp it up into the advanced topics using the steps

outlined above.

Take advantage of the free Options Mastery Reversal System to start learning how we trade options at

NetPicks. Do this and you will be well on your way to becoming a profitable

options trader.

http://www.premiertraderuniversity.com/freeoptionsreversal