Options Trading - Trading Stock Options Can Be Broken Down Into These 7 Simple Steps

Options trading has, for years, enticed and seducedthat are ready to explode is what every trader is
many people into learning about this relativelylooking for. Combine that explosive price movement
unknown form of investing. Stock options are gainingwith the potential gains of stock options and you
popularity, but the mass population is still not fullyhave a winning combination.
aware of their existence. Now that I've experiencedThis crucial first step builds the foundation of a
my own 300% returns on my money, I've set outsuccessful trading business. You can't find quality
to tell the world about options trading.trades on a consistent basis unless you have quality
The first lesson I will share with you is that whenstocks that produce these trades. I use the
you tell people you're learning how to trade stockInvestors Business Daily to find my stocks. They've
options, their responses will vary. Some will have acreated their own proprietary formula for finding the
vague idea, or think you're talking about employeebest stocks. Feel free to check them out at
stock options. A large majority will tell you thatCreating Your Watch List: your watch list is like your
options trading is risky and should be avoided.pot of gold. It will overflow with endless trading
Don't take it personally. They're just looking out foropportunities. This list is your 50-100 best stocks.
your best interest.Your going to review the stock charts each night, or
Many people discouraged me from learning how toweek, looking for potential option trades.
trade stock options. I'm glad I didn't listen becauseUsing Technical Analysis to Find Trades: At this point
trading stock options has changed my financial futurein the trading process you're going to use technical
for the better. Learning how to trade stock optionsindicators to evaluate the stocks on your watch list.
was a struggle at first, but over the years I'veYou're looking for chart patterns and trade entry
managed to break options trading down into 7 simplesignals.
steps.Creating Your Hot List: If you found a stock that has
I'm not the original author of the 7 steps, but I havesignaled for a trade entry, you place it on your hot
noticed that all successful options traders followlist. This is the list of stocks that you're ready to
them. Here are the seven steps:commit money to. You pull up the option chain and
7 Step Process of Trading Stock Optionsyou pre-select the options you're going to buy. You
Finding Hot Stocks: let's face it, finding hot stocksthen wait until the next trading today.