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Discussion in 'Introductions' started by safernan, 5th Jun, 2008.

  1. safernan

    safernan New Member

    Joined:
    22nd Aug, 2007
    Posts:
    3
    Location:
    Melbourne
    Hi All,

    New to the site and I still consider myself new to investing..I think there is still soo much to learn. Also wanted to meet like minded people.

    Sonia
     
  2. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hi Sonia and welcome to the forum :)

    What's your interest in investments?
     
  3. safernan

    safernan New Member

    Joined:
    22nd Aug, 2007
    Posts:
    3
    Location:
    Melbourne
    Hi Jacque,

    My aim is to start option trading in the next 3 months...
    Basically I did an options trading course 2 years ago, but I don't feel I've truely grasped the concept of trading options....I got busy with life and pretty much forgotten everything. Now I want to get back into it with spending another 4K.... Trying to find out good places to learn...cheap products to use to help me find the right trades.

    I've mainly been looking into property investing, but now want to move into trading.
     
  4. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    Why options?
    What do you mean by "Trying to find out good places to learn...cheap products to use to help me find the right trades".
     
  5. safernan

    safernan New Member

    Joined:
    22nd Aug, 2007
    Posts:
    3
    Location:
    Melbourne
    My ex's friend was trading options..and was doing really well with it...I ended up doing an options trading course, but never actually traded...From what I can tell you use minimum capital but still leverage the underlying stock, hence your profit margins are larger....I guess my concern is can you loose more than you put in when you have a bad trade. I want to get back into it. Still very naive about trading. That said I'm doing the refresher course in July so hope to be conceptualise what I learn this time round.

    In terms of finding a good place to learn, basically want to learn about other people's experiences with trading options.

    Products...The course I went on had this product (OptionVue) which retailed for 2K and as much as I would love to purchase it I need to first try and make the money back on the course first which cost me 3K, otherwise I'll be out 5K+ and not making use of what I've learnt, as I've done so far....it's like a catch 22, because the software helps you scan markets (obviously have to pay for the feed every month depending on your subscription -approx 80/month) for the best trades that meet your criteria....So basically looking for software that will help me scan the market for trades but won't break the bank account.

    In the end I don't know if option trading in for me...I'll only know by actually doing it.
     
  6. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    safernan,

    I would first trade ordinary shares for at least 2 years (assuming that you never traded before)...and find out if this business is for you.
    Options are complex instrument to trade.
    If you do not succeed in trading shares – you will be unsuccessful with options.
    There is more to trading than understanding the mechanics of how market/s work.
    It requires an understanding of the psychological aspect of trading.

    Before you commit your time and money to trading options, I would recommend two books :
    Understanding Options Trading in Australia – Christopher Tate.
    The Secret Of Writing Options – An Australian Guide to Trading Options for Profit – Louise Bedford.

    PS – What works for your friend may not work for you - and vice versa.;)