The Four Biggest Mistakes in Option Trading

ISBN-13: 9781592802555 / Angielski / Miękka / 2006 / 112 str.

Jay Kaeppel

Opis

With over 50,000 copies in print for the first edition, Kaeppel's insight has undoubtedly made its mark in the options world. Now, he strikes again with an updated and more comprehensive look at those pesky mistakes that traders continue to make in trading options. In easy-to-understand terms, he systematically breaks down each problem and offers concrete and practical solutions to overcome it in the future. There are big profits to be made in options trading. By avoiding the four most common and most costly mistakes the majority of traders make, you'll be set to win big. System and software developer Jay Kaeppel helps you thoroughly understand each mistake before showing you how to avoid them in future trades. In this new, color edition, you'll find:

• More in-depth analysis of the four biggest mistakes including volatility calculations, risk/reward relationships, calendar spreads, etc.
• More real world examples with varying scenarios updated to reflect today's market
• More graphs and tables to better illustrate Kaeppel's concepts
• More detailed discussion on the nature of options trading and how to create a consistently winning strategy

Concise and to-the-point, here's an action plan you can read and put into place immediately to become a more profitable trader.

Spis treści

Introduction vii

Mistake #1

Relying Solely on Market Timing to Trade Options 1

Why Traders Make Mistake #1 1

Why Mistake #1 Causes Losses In The Long Run 12

How To Avoid Mistake #1 22

Mistake #2

Buying Only Out–of–The–Money Options 27

Why Traders Make Mistake #2 29

Why Mistake #2 Causes Losses In The Long Run 34

How To Avoid Mistake #2 42

Mistake #3

Using Strategies That Are Too Complex 47

Why Traders Make Mistake #3 48

Why Mistake #3 Causes Losses In The Long Run 55

How To Avoid Mistake #3 64

Mistake #4

Casting Too Wide of a Net 67

Why Traders Make Mistake #4 67

Why Mistake #4 Causes Losses in the Long Run 67

How to Avoid Mistake #4 77

Summary 81

About the Author and Optionetics 83

Company Information 85

Trading Source Guide

Tools For Success in Options Trading 87

O autorze

Jay Kaeppel (Wheaton, IL), is Director of Research at Essex Trading Company, Ltd., and an active CTA (commodity trading advisor). His expertise as a system developer has been noted by Technical Analysis of Stock & Commodities magazine and Formula Research, a renowned trading system advisory newsletter.

Blurb

Kaeppel beans a very bright light on 4 of the most common yet most difficult to overcome trading don t s . In easy–to–understand terms he breaks down the problems and offers solutions. Keep this concise little gem near you at all times while trading.

Consistently in the TOP 25 OPTIONS BOOKS on Amazon!

You can earn big profits in options trading by avoiding the 4 most common and most costly mistakes the majority of traders make. Software developer Jay Kaeppel shows you how to avoid common pitfalls option traders encounter that cause them to lose money in the long run.

In Kaeppel s quick reading style you ll

• Learn to isolate the 4 most common mistakes
• See why they are so common and easy to make
• And discover a simple strategy to avoid these mistakes altogether

Here s an action plan you can read and put into place immediately to become a more profitable trader in no time.