Review of First Steps in Options Book
I have been trading stocks for some time and gradually discovered that I can only profit in bullish bull markets. So, I looked to see if there is another investment instrument that can help me make a profit in more than one way or protect my position in stocks. Many people tried to introduce me to currency trading (Forex) for no apparent reason. However, I found out that it was just another base instrument, like stocks. I have turned down many invitations to seminars where you will be enrolled in an unnecessary course. One day I came across options trading and was fascinated. I wanted to learn more about it and I went online shopping on Amazon.com and came across this book called “Getting Started In Options” by Michael C. Thomsett. Many hidden gems are linked in this book. In this book, you can find information about:
- Assess your risk tolerance level and how best to include Options in your portfolio
- Options terminologies, definitions, concepts, basic and advanced strategies
- Using Insurance Strategies in Options to Cover Losses in Your Stock Portfolio
- Practice trading using “paper trades” or virtual money to minimize future losses
- Know where to find online resources and use them to your advantage
- Understand the properties of options, for example, strike price, expiration, intrinsic and extrinsic values to maximize profits
- Buying and selling Options and choosing the right stocks to invest
- Calculate your returns
After reading this book, I found that Options are the investment instrument that I have been looking for for some time. I like to recommend this book as a must read for beginners who want to start options trading but don’t know where to start and don’t understand how options really work. The author takes a complex instrument and explains it in a very clear and easy to understand way. This book will give anyone a good foundation in options trading in no time. The many examples are designed to further illustrate the concept in a practical way.
Two of my favorite things are the Smart Investor Tip, which gives you important tips for earning while trading, and the In-Context Definitions presented in a shaded box that appears on any page to explain certain terminology used in the text. The best thing is that I made some profit even as a beginner using the strategies, however I practiced using virtual trading first as recommended. I would have lost a lot of money if I had not received this book from the start.