This morning’s down opening is just one more example why being out of the market over the weekend is a sound policy – when trading short-term positions.
I often find a list of trade suggestions and top-10 lists as I peruse various blogs on the World Wide Web. Most of these lists are written for the day trader and are not appropriate for us, as option traders who hold positions. Nevertheless, we can often find a nugget or two in any list. One such idea is the suggestion of using a mentor: For example
Find a mentor – It’s never been easier to find a mentor, even if it is a virtual one. I can’t emphasize how crucial this is because being able to interact with a seasoned trader on a regular basis will shorten your learning curve like nothing else. And don’t be averse to using a paid mentor via a trading service. The $50-$100 bucks a month you will pay may save you thousands.
NOTE: Most mentors whom I know charge much higher fees than quoted above. However, the cost is not the issue. Getting the most out of any mentoring relationship requires a special effort of everyone’s part.
I consider your membership in Options for Rookies to be primarily a program where lour relationship is teacher/student. However, if you play an active role as a member, we can develop a true mentoring relationship. That increases my workload, but my objective is to help each member become a more successful trader. If you seek that extra guidance, I will do my best to provide it.
I want each of you to be aware that as part of your membership fee, you can receive personal attention.
The forum is designed for sharing experiences or raising questions that you believe are of interest to most traders.
If your want to discuss a specific topic that relates to a lesson or blog post, then that blog post is the appropriate place to leave a comment or ask a question.
If there is a personal situation that you do not want to share, then use e-mail.
Ask questions about your trades – real trades, virtual trades, or just something you are considering.
Request that I offer my thoughts behind making a specific trade decision: a new trade, an adjustment, or an exit decision. I believe this offers an experience that is almost impossible for most newer traders to find. It is not that my thoughts are going to lead you to the promised land. However, when you understand some of the items that an experienced trader considers/rejects, it may help you discover ideas much sooner than when you do the step-by-step discovery alone.
You never know when a specific detail may click with you and make a significant difference in your learning curve and performance. Some innocent comment may lead you to consider some aspect of trading that you had not previously thought about. And it is just as possible that a question of yours may alert me to something new that is worth a detailed examination.
Members may request instructions on how to adopt a specific strategy – one that you are interested in learning.
Take the video course, even if you are not a beginner. It is sure to include tidbits and hints.
Pay specific attention to philosophical discussions. It is important to develop a general ‘way of thinking’ that makes trading more efficient and profitable. Even when your philosophy does not align with mine, just adopting a consistent philosophy about trading is to your benefit.
For example, I believe that when you have a profit on an any open position, it is your money. You earned that money and it belongs to you. Respect it and protect it. Other traders believe it is ‘house money’ and that extra risk can be taken because it is someone else’s money. Do not fall into that trap.
Options for Rookies is different.
I don’t have an agenda, other than to help each member learn to use options efficiently.
I always stress the importance of risk management from the very beginning of your trading career. It may be difficult for the novice to believe, but when trading anything (stocks, options, commodities, forex, etc), the essential factor that determines your long-term success is your ability to avoid losing too much money. The only way to accomplish that task is never to have more money at risk that you can afford to lose. It sounds simple and logical, but it is easy to forget when trading a position with a high probability of success. As traders, we must be prepared to survive those unlikely events.
We each have a comfort zone. When we discover that zone and reside within it, our trading is less stressful, Eventually, when we want to become far better – even expert – traders, that’s the time to expand our comfort zones. But as rookies, or traders with limited experience, we want to become consistently profitable before even thinking about trying to earn more money. Overconfidence can kill a budding trading career.
However, the major advantage of working with me at Options for Rookies is that I am available to you. The cost is low, the quality is high and I care. I want you to understand what you are doing. I never talk down to members. I remember what it was like to be a new options trader. It’s an exciting time – and if you are looking for guidance, give us a try. Thirty-day unconditional money-back guarantee.