Where Should I Turn For Option Education?
Posted by Pete Stolcers on February 4
Option Trading Question
Today Kanu B. states, "I am interested in options and I have attended some free seminars. I paid for a 3 day seminar and learned nothing! Now they want me to commit to 3 more days @ $3500. I declined the offer but they are constant with the calls and e-mails. I'm confused and I want to learn very basic options strategies and I don't know where to turn. I'm willing to pay a reasonable fee to learn. Is this industry regulated?"
Option Trading Answer
All phone solicitations and advertisements are regulated by the FCC. The next time they call, get the person’s name, record the date/time and tell them to put your name on their “Do not call list”. If they call you again, notify the FCC. Ask to unsubscribe from their mailing list. It they continue, report them to your ISP for spamming. Finally, be vocal about how they are hassling you in forums like this. If the word gets around, they will either stop this practice or lose business.
In general, there are many firms that snare the greedy with claims of fame. The harder they push and the more they charge, the more suspicious you should be. The normal game is to get you to come to a free seminar. The seminar has little educational value and their intent is to sell you a high priced course. Anything over $1000 should be seriously questioned. Visit chat rooms and bulletin boards before you pay to attend a seminar. People that have attended and who have nothing to gain/lose are an honest source of information. Do not place any value in testimonials!
My suggestion is to spend $300 - $400 on some good books. The Compleat Option Player (Ken Trester), Options As A Strategic Investment (Larry McMillan), Candlesticks Explained (Martin Pring), Rules of the Trade (David Nassar) are a few of my favorites.
I know it is easier to park butt in a seminar and take notes. Trading for a living is hard work. The sooner you roll up your sleeves, the better. If you want to go to the Holiday Inn and pay an outrageous premium to hear a wannabe trader “teach” what has already been written, that’s your prerogative.
You will learn much more by spending $400-$500 on great books and when the time is right, trade tiny size with the understanding that you will probably lose $3,000 in the process. Keep a log of your trades and write down what went right and wrong. Review your notes over the weekend. You will learn far more this way than you will the other.
Now I’ll toot my own horn. READ MY BLOG - IT’S FREE! Help me build this resource and tell as many friends as you can.
Thnx for the question Kanu.
If you have had any good or bad educational experiences, please help your fellow traders and share by commenting.