One day I came across Options Trading and was fascinated by it. I wanted to learn more about it and went to MPH bookstore and chance upon this book called "Getting Started In Options" by Michael C. Thomsett. In this book lies many hidden gems. In this book, you can learn about:
- Assess your risk tolerance level and how best to include Options into your portfolio
- Option terminologys, definitions, concepts, basic and advance strategies
- Using insurance strategies in Options to hedge against losses in your stock portfolio
- Practice trading using "paper trades" or virtual money to minimize losses
- Know where to find online resources and use it to your advantage
- Understand the properties of Options e.g. strike price, expiration, intrinsic and extrinsic values to maximize profits
- Buying and selling of Options and choosing the right stock
- Calculate your returns
After reading this book, I found Options to be the investment instrument which I have been searching for. I like to recommend this book as a must read for beginners who wants to start trading options but do not know where to start and do not understand how Options really work.
The author takes a complex instrument and explain it in a very clear and easy to understand way. This book will give anybody a good foundation of Options trading in a short time. The many examples are designed to further illustrate the concept in a practical way.
Two things I like most is the Smart Investor Tip which gives you important tips to win during trading and Definitions in context presented in a shaded box appears in any page to explain certain terminology used in the text. The best thing is, I have made some profits even as a beginner using the strategies, however I did practice using virtual trades first as advised. I would have lost lots of money had I not gotten this book from the start.
