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#532 - The Ultimate "Quick" Guide To Trading Stocks: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to go through our ultimate quick guide to trading stocks. I think this is actually going to be fairly short because what I want to talk...

#532 - The Ultimate "Quick" Guide To Trading Stocks: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to go through our ultimate quick guide to trading stocks. I think this is actually going to be fairly short because what I want to talk...

DeThe "Daily Call" From Option Alpha


#532 - The Ultimate "Quick" Guide To Trading Stocks: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to go through our ultimate quick guide to trading stocks. I think this is actually going to be fairly short because what I want to talk...

DeThe "Daily Call" From Option Alpha

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Longueur:
4 minutes
Sortie:
Mar 8, 2019
Format:
Épisode du podcast

Description

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to go through our ultimate quick guide to trading stocks. I think this is actually going to be fairly short because what I want to talk about with regard to stock trading is only just a couple of key bullet points, but if you're new to trading or you’re new to investing, likely, the path that you’re going to take when you start is you’re going to start looking at trading stocks. In fact, this is the most typical or usual path that options traders eventually get down, is they start trading stocks and then they do potentially covered calls and then they just fully commit to options trading or some sort of derivative product trading. But trading stocks is actually pretty simple, pretty easy to do because all you're trying to do is take advantage of different price points. There's no time aspect of it, there's no volatility aspect, there's no Theta decay, there’s no Gamma risk. It's actually very simple on the outside. The problem is that stock trading in and of itself is very inefficient because it requires a lot of capital and it requires you to be right in your directional assumption which is by default, inherently very risky and practically unable to do on a consistent basis. We see this time and time again in research that pops up across the board, not only research that we've done, but also research that other firms and other people have done that stock trading in and of itself is incredibly unprofitable for most people because of the capital requirement that is required to purchase stock or to short stock and then of the directional risk that comes out of trying to pick where stock is going to top or bottom or if a stock is going to trade in a range or break out. It's very hard to do. Now, this doesn’t mean that there aren’t people who have done it before or consistently do it now, but I think they’re the exception rather than the rule. And so, my advice would be is that if you're trying to get started and you want a quick guide to trading stocks, I would say the quickest way to make money in stock trading is to actually not trade stocks and skip right over it and start going into options trading. Options trading allows you to use strategies that create high probability risk defined payouts and give you an opportunity to make money in ranges or in zones versus trying to plant your flag in the sand and saying, “Okay. This is where I need the stock to trade above and I’m going to risk a ton of capital to purchase shares in this stock and hope that it works out for the best.” Because ultimately, it is really a recipe for disaster and most people are not good stock traders. I know that I originally started out trying to day trade, realized very quickly 10 plus years ago when I started doing this that I'm not a good day trader, I have no idea how to predict the market and that's okay. You don't need to be good at day trading. You don't need to be good at predicting where stocks are going to go. You just need to play the numbers, the high probability options trading system like the one that we teach at Option Alpha and use the numbers to your advantage. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.
Sortie:
Mar 8, 2019
Format:
Épisode du podcast