Unfortunately, many people who are interested in learning more about the options market are provided with misinformation from friends, colleagues, online blogs, and even articles posted online.
One of the most common aspects of this misinformation is that options trading is a high-risk type of activity that is very similar to gambling. The reality could not be further from the truth, with experienced options traders and investors carefully choosing the contracts they buy or sell based on the movement of the market.
Part of the reason that options trading is often called a form of gambling is the lack of understanding and education most people have when getting into the market. Without experience and support, it is more common to make poor selections of options and to fail to understand the research, market study, and the ongoing trade analysis that is the basis of the selection used by all successful options traders.Read More