I have been trading stocks for some time and gradually found that I can only profit in bullish bull markets. So, I looked to see if there is another investment instrument that can help me make a profit in more than one way or protect my position in stocks. Many people tried to introduce me to currency trading (Forex) for no apparent reason. However, I found out that it was just another basic instrument, like stocks. I declined many invitations to seminars where you will be enrolled in an unnecessary course. One day I came across options trading and it fascinated me. I wanted to learn more about it and I went online shopping at Amazon.com and was able to find this book called “Getting Started In Options” by Michael C. Thomsett. In this book many hidden gems are united. In this book, you can find information about:
- Assess your level of risk tolerance and the best way to include options in your portfolio
- Option terminologies, definitions, concepts, basic and advanced strategies
- Using Options Insurance Strategies to Protect Against Loss in Your Equity Portfolio
- Practice trading using “paper trades” or virtual money to minimize future losses
- Know where to find resources online and use them to your advantage
- Understand the properties of options, for example, strike price, expiration, intrinsic and extrinsic values to maximize profits.
- Buying and selling options and choosing the right shares to invest
- Calculate your returns
After reading this book, I discovered that options are the investment instrument I have been looking for for some time. I like to recommend this book as a must-read for beginners who want to get started trading options but don’t know where to start and don’t understand how options really work. The author takes a complex instrument and explains it in a very clear and easy to understand way. This book will give anyone a good foundation for options trading in no time. The numerous examples are designed to further illustrate the concept in a practical way.
The two things I like the most are the Smart Investor Tip, which gives you important tips for earning while trading, and in-context definitions presented in a shaded box that appear on any page to explain certain terminology used in the text. The best thing is that I made some profit even as a beginner using the strategies, however I practiced using virtual trading first as recommended. I would have lost a lot of money if I hadn’t received this book from the beginning.