Let’s look at some (very) frequently asked questions:
How much money should I use to get started trading options?
The answer to this question is two-fold. First off you should not use retirement or nest egg money to trade options. You should only be using money you can afford to lose. Secondly, starting off with $1,00o to $5,000 is ideal. Anything less than $1,000 is difficult because you will have to divide up the money into portions and the fees tend to take a substantial toll on small accounts.
How should I manage my options trading money?
This is something that you need to decide on before you start trading options. A sensible approach is to divide up your capital into 5 or 10 portions. When making a trade, never use more than 1 portion of your money. For example, if you have $5,000 to trade options, you can divide it up into 10 equal portions of $500. When you make an options trade, never use more 1 portion. The exception to this rule is if you buy an options contract that costs more than 1 portion of your capital. The bottom line is that you don’t get overconfident and place all your money in 1 or 2 options trades, which can end in a complete loss within hours/days.
Will OptionsMillionaires.com tell me when/where to buy/sell?
It is important to understand that this site website does not offer any sort of official financial advice. All recommendations are to be considered to be amateur and for entertainment purposes only. Bearing this in mind, when we issue a new pick we do give an outline of where we feel it is best to buy and sell the option pick. Sometimes if we issue a pick and it goes better or worse than expected we will modify our outlook and send an additional alert/update.
How many alerts/emails can I expect as a member each week?
Typically we will send an update out on Monday morning that lets you know where things stand in regards to our opinion of the market and/or any current or possible upcoming options picks. Additionally you can expect to receive 1-3 updates/alerts throughout the remainder of the week.
I work long hours at my job and can only trade for a short time each day, can I still use this service effectively?
Yes, yes, yes. These trading alerts only take a few minutes to implement, and the email alerts are simple to understand. You should be able to open the email, read it, and place the trade in 5 minutes or less. We also offer text message alerts so you’ll know when an alert has been sent!
How do you pick the options that you alert?
We have 2 different strategies. The first is based purely off of technical analysis of the daily and/or the 60 minute chart. Many people dismiss technical analysis as foolish, but if you know how to use it in a specific, disciplined fashion it can make you a ton of money trading options. The second method is based on a semi-complicated mathematical formula of calculating what direction a stock will move during expiration week (usually the 3rd week of every month). This method “piggy backs” on the general interest of large institutional options sellers who many times will “pin” a certain stock to predictable price level by the Friday of options expiration week. This is truly an amazing and profitable way to trade volatile options during expiration week.
Do you recommend that options be held into expiration?
Heck no. Unless you have over 100k in your account you will no doubt run into serious problems if you try doing this. Always sell before the market closes on expiration Fridays.
Sign Up For Your 30 Day $1 Trial Of OptionsMillionaires.com Here