I have been trading stocks for some time and gradually found that I can only make a profit in bull upward markets. So, I went searching if there is another investment instrument that can help me to profit more than one way or protect my stock position. Many people tried introducing me to Foreign Exchange (Forex) trading for no apparent reason. However, I found that it was just another base instrument, like stocks. I rejected many invitations to seminars where they will sign you up for a needless course. One day I came across Options Trading and was fascinated by it. I wanted to learn more about it and went cybershopping at Amazon.com and chance upon this book called "Getting Started In Options" by Michael C. Thomsett. In this book lie many hidden gems. In this book, you can find information about:

  • Assess your risk tolerance level and how best to include Options into your portfolio
  • Option terminologies, definitions, concepts, basic and advance strategies
  • Using insurance strategies in Options to hedge against losses in your stock portfolio
  • Practice trading using "paper trades" or virtual money to minimize future losses
  • Know where to find online resources and use it to your advantage
  • Understand the properties of Options eg strike price, expiration, intrinsic and extrinsic values ​​to maximize profits
  • Buying and selling of Options and choosing the right stock to invest on
  • Calculate your returns

After reading this book, I found Options to be the investment instrument which I have been searching for for some time. I like to recommend this book as a must read for beginners who wants to start trading options but do not know where to start and do not 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 of Options trading in a short time. The many examples are designed to further illustrate the concept in a practical way.

Two things I like most is the Smart Investor Tip which gives you important tips to win during trading and Definitions in context presented in a shaded box appears in any page to explain certain terminology used in the text. The best thing is, I have made some profits even as a beginner using the strategies, however I did practice using virtual trades first as advised. I would have lost lots of money had I not gotten this book from the start.

Source by Raymond Heng