Last weekend I wrote about the importance, indeed, the necessity of
education if one is going to be a successful trader. Now I'd like to
touch upon some of the resources available to the person new to
trading. "Characteristics and Risks of Standardized Options," usually
free from your broker for anyone contemplating option trading is an
excellent and informative work. The Chicago Board of Trade
has several webinars, including some on option tools and
trading as well as on specific types of trading. At www.nyse.com, you
can also find helpful educational material including information about
how to buy and sell stock. There is also a wealth of information at
www.nasdaq.com. One of my favorite sources is the Options Industry
Council (OIC). The OIC has books, videos, webcasts,
podcasts, and classes at very reasonable prices.
Perhaps the best site of all for free and inexpensive sources of
trading knowledge is the Chicago Board Options Exchange (CBOE) website
and its Options Institute provides a wealth (pun intended)
of information for everyone from novices to expert traders. It includes
a complete options dictionary as well as a great bookstore. The Options
Institute offers web and live classes. I recommend the site to you.
If you are a reader, I first recommend "Rich Dad, Poor Dad" by Robert
Kiyosaki. In general, "Rich Dad, Poor Dad" illustrates the importance
in having your assets work for you rather than using your own time as
the only asset earning for you. Kiyosaki has written several other
books and does give seminars, but once you have read "Rich Dad, Poor
Dad, I would next consider Dr. Alexander Elder's "Trading for a Living"
and Lawrence G. McMillan's "Options as a Strategic Investment" (4th
edition). I am, primarily, a technical trader so I would suggest
something like "Technical Analysis Explained" by Martin J. Pring and
either books or DVDs on Japanese Candlesticks by Steve Nison. I know
all of that sounds like a lot, and it is, but take it on like you would
eat an elephant -- "one bite at a time."
There are many seminars available and some are quite worthwhile.
However, I want to add a caution. Many of the seminars are given by
people who make their money giving seminars, not by successful trading.
The key is to inquire. If someone really is going to give you your
money's worth, they should be successful traders. When you are
considering signing up for a seminar, raise your hand and ask
specifically who will be the presenter and what percentage of their
income comes from trading and what percentage comes from giving the
seminar. Since they don't have to give you amounts, they shouldn't
hesitate to answer. If they refuse to answer, duck the question, or
aren't making 50% or more from trading, go somewhere else. If you go to
a free seminar at which the company is selling a paid seminar, watch out
for the high pressure push. Ask whether there are additional seminars
that they offer after the first and find the total cost of all. If the
sales pressure is high, my liklihood of signing up is low. It suggests
that selling seminars is more important to them than successful trading.
If you get that feeling, just say no.
Hopefully, some of these suggestions will get you on your way.
Good Trading!
Bill Kraft
P.S. If you would like a copy of my DVD set consisting of my 2 full day
basic trading seminar, please let us know by return email or calling our toll-free number
during stock market hours (866-756-2656). $99 to subscribers (regularly $199) for the complete 5 DVD
set.
P.P.S. I do make more than 50% of my living trading.
Mr. Kraft's past articles are posted on our website for your review.
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