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OPTION
TRADING
TIPS
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Why Trade Options
The main reason for
trading options is
that for a smaller
amount of money you
can control a large
amount of stock,
mainly with call
options. Call
options are always
less expensive than
the underlying
stock. Options are
generally more
volatile than their
underlying asset, so
traders get more
action for their
money. Evidently
this can lead to
higher risk, but it
also can lead to
more safety and
security if you
follow the rules of
option trading.
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Risk
Disclosure
Trading in
E-mini Futures,
and FOREX
markets carries
a high level of
risk, and may
not be suitable
for all
investors.
Before deciding
to trade in
Stocks, Options,
Futures, and
FOREX you should
carefully
consider your
investment
objectives,
level of
experience, and
risk appetite.
The possibility
exists that you
could sustain a
loss of some or
all or even more
than your
initial
investment and
therefore you
should not
invest money
that you cannot
afford to lose.
You should be
aware of all the
risks associated
with trading,
and seek advice
from your own
independent
financial
advisor.
Hypothetical
Results
Disclosure
HYPOTHETICAL
PERFORMANCE
RESULTS HAVE
MANY INHERENT
LIMITATIONS,
SOME OF WHICH
ARE DESCRIBED
BELOW. NO
REPRESENTATION
IS BEING MADE
THAT ANY ACCOUNT
WILL OR IS
LIKELY TO
ACHIEVE PROFITS
OR LOSSES
SIMILAR TO THOSE
SHOWN. IN FACT,
THERE ARE
FREQUENTLY SHARP
DIFFERENCES
BETWEEN
HYPOTHETICAL
PERFORMANCE
RESULTS AND THE
ACTUAL RESULTS
ACHIEVED BY ANY
PARTICULAR
TRADING PROGRAM.
ONE OF THE
LIMITATIONS OF
HYPOTHETICAL
PERFORMANCE
RESULTS IS THAT
THEY ARE
GENERALLY
PREPARED WITH
THE BENEFIT OF
HINDSIGHT. IN
ADDITION,
HYPOTHETICAL
TRADING DOES NOT
INVOLVE
FINANCIAL RISK,
AND NO
HYPOTHETICAL
TRADING RECORD
CAN COMPLETELY
ACCOUNT FOR THE
IMPACT OF
FINANCIAL RISK
IN ACTUAL
TRADING. FOR
EXAMPLE, THE
ABILITY TO
WITHSTAND LOSSES
OR TO ADHERE TO
A PARTICULAR
TRADING PROGRAM
IN SPITE OF
TRADING LOSSES
ARE MATERIAL
POINTS WHICH CAN
ALSO ADVERSELY
AFFECT ACTUAL
TRADING RESULTS.
THERE ARE
NUMEROUS OTHER
FACTORS RELATED
TO THE MARKETS
IN GENERAL OR TO
THE
IMPLEMENTATION
OF ANY SPECIFIC
TRADING PROGRAM
WHICH CANNOT BE
FULLY ACCOUNTED
FOR IN THE
PREPARATION OF
HYPOTHETICAL
PERFORMANCE
RESULTS AND ALL
OF WHICH CAN
ADVERSELY AFFECT
ACTUAL TRADING
RESULTS. |
