How to Learn Option Trading
“How to learn option trading.” It is the question even the most successful traders have asked themselves at one point in their career. But how do you learn, who can you trust, and why should you care?
1. Youtube
Youtube tends to be everyone's start; a simple “how to option trade” search will prompt a list of thousands of videos. Specific inquiries will prompt better results. But titles like “turn $1 in $20k with option trading” and “watch me trade options for the first time” give off the perception that option trading is easy. It seems like the content creators are more about views than education. Don't get me wrong; youtube is an excellent source of information once you know what it is you're looking for.
2. Books
Books are a great way to learn; they're structured and go through the basics thoroughly. Most are written by professional traders that have worked for hedge funds or are successful retail traders. They give insight into the psychology of trading and tips to be successful. This is a great way to start if you're the type who can read a book and retain the information.
*when searching for books, look for something current to which it'll be easier to relate.*
3. Signal servers
If you follow any option trader on social media, you've probably seen them promote their Discord server, where they inform members of the server on plays they’ve taken or plan on taking. I have personally been a part of 2 servers, one that doesn't exist anymore and Rippy Global. In Rippy Global, you’ll find live and pre-recorded zoom classes going over things like TA, risk management, pattern formations, and trade recaps, to name a few. Admins are consistent with answering questions. There are designated channels for members to work together, whether business opportunities, trade ideas, or socializing.
4. Mentorships
Taking a mentorship is another excellent way to learn. Mentors typically take on a small group of mentees so that you can expect one-on-one time. Mentors break down the basics and lead into advanced techniques like reading time and sales and using level II. Mentorships usually include daily live zoom trading; some include in-person meet-ups and post-mentorship check-ins to see how the trading is going.
5. Why should I learn?
There are two ways to answer this question. I can give you the “because Lambos, vacations & wagyu everything!” version that most people want to hear or “because learning will provide you with skills that can apply to everyday life. You'll learn risk management and how to control your emotions in stressful situations and can provide an income that can buy Lambos, vacations, wagyu, and more.” Option trading can open opportunities that some of us could never have imagined because the stock market does not care who you are or what you've done; during market hours, you're just account number 12345 placing calls or puts. Take control of your life, check these mentorships out (insert mentorship sign-ups)