Open up a brokerage account by registering with your personal information. Link your bank and fund it with at least $500-$2000. Below are the recommended brokerage accounts that we use to trade in the Trading Room:
This chapter is very important to pay attention to. It's very important to adopt Trading habits early in your career. All the time, traders said they had to learn valuable lessons losing money before earning money. This doesn't have to be you is you take the time to invest in yourself and watch this video. Also, take the time to read through the course watching every video and taking notes. Here's a video by David Westgate who interviewed hundreds of wealthy traders and compiled a list of habits you should remember.
What is Options Trading? Buying and selling options is done on the options market, which trades contracts based on securities. Buying an option that allows you to buy shares at a later time is called a "call option," whereas buying an option that allows you to sell shares at a later time is called a "put option."
In this Chapter, you will learn about what strike prices are and how important they are when picking a contract. The strike price is the price that the underlying asset can be purchased at if the option contract is exercised before expiration. The strike price is the price from which you can get long or short the underlying security from.
In this Chapter, you will learn how to choose the right expiration date. This part can be very difficult. The further out expiration you choose, the higher the premium will cost per contract. This is because your contract will have a longer time before expiration. You have to figure out how long you plan to hold the contract.
What Is an Option Premium? An option premium is the current market price of an option contract. It is thus the income received by the seller (writer) of an option contract to another party. In-the-money option premiums are composed of two factors: intrinsic and extrinsic value. Out-of-the-money options' premiums consist solely of extrinsic value.
Now that you know what a strike price is and how to buy calls and puts, the most important question is... How do you know what option to choose? When I first started, this has been hard to figure out but in this chapter, we will try and solve the riddle.