3 Things a Decent Options Trading System Must Have
Whether you are a novice trader or a pro, if you want to trade properly then you will need to have an options trading system
. Simply buying an option and hoping for the best is not going to cut it in this world. The Chicago Options Board of Exchange that looks after all things options related states that over 80% of options expire worthless!
That is huge number and so if you want to make a money with options trading then you are going to need to employ a system.
However be warned. There are loads of rubbish options trading system out there. When you choose a system you must choose one a system which can answer yes to the following three questions:
Does it have a proven track record? Many options trading systems do not prove their results. Anyone can create a winning system on historical data, once they know what the markets have done. So where you see a system which show you pretty charts with arrows on when they entered the trades, you need to make sure that these trades were in fact actually placed and the arrows were not added after they saw the market move!
Is it a system which can be fully automated so you don't need to be at your computer the whole time? A system which does not allow you to live your life (or work at your job!) whilst you are trading is no good. If you have to stare at the screen all the time, then you are not trading an options system, but day trading. A good system should be something which you can trade automatically. Does the system have as few as trades as possible in a month to make the maximum returns?
3 Things a Decent Options Trading System Must Have