Thinking of trading options, but not sure where to start? Trading Options For Dummies starts you from the beginning with clear, step-by-step advice on how to use top option strategies to reduce your risk while boosting your income and enlarging your retirement portfolio with index, equity, and ETF options.
This plain-English guide explains the common types of options and helps you choose the right ones for your investing needs. You find out how to weigh option costs and benefits, combine options to reduce risk, and build a strategy that allows you to gain no matter what the market may bring. You’ll learn the basics of market and sector analysis and what to look for when trying out a new option strategy. You’ll also find what you need to know about options contract specifications and mechanics. Discover how to:
- Understand option contracts and orders
- Determine and manage your risk
- Guard your assets using options
- Trade options on securities exchanges
- Protect your rights and satisfy your contract obligations
- Target sectors using technical analysis
- Minimize potential losses and optimize rewards
- Map out your plan of attack
- Limit your downside when trading the trend
- Combine options to limit your position risk
- Benefit from exchange traded funds
- Key in on volatility for trading opportunities
- Capitalize on sideways movements
Trading options is serious business. Trading Options For Dummies gives you the expert help you need to succeed.
Tags: retirement portfolio, target sectors, option contracts, Risk, Trading
{ 1 comment… read it below or add one }
Like I said in the article, if you can't control your emotions and/or impulsivity, maybe you should just rebalance and take a lower return. But if you are after returns–and obviously the cost of those returns, like the cost of all returns, is volatility–then it makes sense to use relative strength. Here's an experiment: ask your client if they would prefer a $326,000 retirement portfolio (60/40 blend) or a $1.6 million retirement portfolio (momentum) that came with twice as much volatility.
The evidence shows that most DIY's cannot take even the volatility of a 60/40 blend. Dalbar's holding periods even for those type of funds are barely three years. Clients need to be better mentally prepared for equity volatility generally.
You must log in to post a comment.