Options Trading: How to Make Money in Less Than 7 Days

Introduction

Congratulations on downloading this book and thank you for doing so.

The following chapters will teach you the ins and outs of options trading: 

Chapter 1 talks about the basics so that you will have a good foundation and understanding of what options trading is really all about.

Chapter 2 discusses the risks and benefits of options trading.

Chapter 3 teaches powerful and effective strategies that you can use to increase your chances of making the right trading decisions.

Chapter 4 reveals the important keys to success to help make you a better options trader.

Chapter 5 lays down the common mistakes that you should avoid.

Chapter 6 discusses the successful trader’s mindset. It is the right mindset if you want to make continuous profits with options trading.

May this book be your guide to success, happiness, and financial freedom

There are plenty of books on this subject on the market, thanks again for choosing this one! Every effort was made to ensure it is full of as much useful information as possible. Please enjoy!

Chapter 1: Options Trading 101

What is options trading ?

Options trading is also called binary options. It is like trading stocks and forex. However, you do not have to purchase any assets. Instead, you simply have to speculate if the price of a particular asset will increase or decrease at expiry date. Many traders get attracted to options trading due to its simplicity. It is also worth noting that this kind of trading has a fixed risk as well as a fixed payout.

Options trading vs. gambling

There are people who confuse options trading with gambling. In fact, in some jurisdictions, trading options is already considered as gambling. Just like a game of roulette where you can wager if the ball will land on red or black, in options trading, you simply have to speculate if the price of an underlying asset will rise or fall at a specified time. Also, just like many gambling games, there is a fixed payout if you are able to predict the outcome correctly.

Does this mean that options trading is gambling? Well, it depends on how you approach it. If you trade options by relying on mere guesswork, then you can consider that to be gambling. But if every wager that you make is backed up with a thorough research and a good understanding of the asset concerned, and if you consider every decision as an investment decision, then you are trading/investing and not just gambling. Take note that this does not necessarily mean that gambling is completely bad, especially once you witness how the casino sharks dominate a table. However, it is not advisable to approach options trading as a mere gamble, because doing so can significantly increase the chances of losing all your investment. Now, whether you view options trading as gambling or not is a free choice that you can make. The important thing here is the profit that you have earned if any.    

Options trading vs. forex and stock trading

When you trade options, you do not have to buy currencies or stocks. You do not get to own any assets. Instead, you merely speculate if the price of a particular asset will rise or fall at expiry date. Another distinct difference is