Recommended Readings

Recommended Readings

Options As A Strategic Investment

By Lawrence G. McMillan

Reflecting today’s market realities and the new innovative options products available,
this book features an in-depth analysis of volatility and volatility trading; updated
information on all stock option strategies, reflecting recent market conditions; buy and
sell strategies for Long Term Equity Anticipation Securities (LEAPs); detailed guidance
for investing in the growing field of structured products; the latest developments in
futures and futures options; and the market impact of the most recent changes in the
margin rules. Read More…

Stay away from stocks that hurt you.

13. Stay away from stocks that hurt you.
14. Don’t be a gambler.
15. Do not try anything new with real money.
16. Do not make stupid mistake, think like a pro.
17. After the trade is done, off your computer and go to bed.
18. Follow the system and your trading plan.
"Habits are safer than rules; you don't have to watch them. And
you don't have to keep them either. They keep you."
-Frank Crane

About The Author

Ronald Lee is a Malaysian street smart entrepreneur, a professional
investor/trader, a trainer and author. He provides contact coaching
lessons on US stock options trading; sharing his trading experiences
and how to achieve consistent profits systematically with his low risk,
proven high probability trading methodology.

He is widely known for his blog, ,
which is devoted to sharing his effective emotion-free trading
psychology on reversal-driven quick profits and trading traps to avoid.

If you are trading options do not misunderstand the word

If you are trading options do not misunderstand the word “Limited
Risk” thinking that you are not going to lose a lot of money because
the risks are limited. “Limited Risk” is not to be interpreted as it is,
what it actual means is that as compared to buying or shorting a
stock, the risk is limited. If you buy a particular stock for $50, you risk
is $50 because the company can go bust which is most unlikely to
happen but it can go down. Buying the stock option instead will limit
your loses for you may only pay $5 for it. And comparing both, buy
option seems to be a logical choice because you only have to pay 10%
of the stock’s price; so naturally, you don’t mind risking it all. It is this
mentality that most options trader loses money.