Follow Us: TwitterFacebookRSS feed

Where Should I Turn For Option Education?

Posted by Pete Stolcers on February 4, 2009

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.

Option Trading Comments

  • On 08/30, JoAnn said:

    I spent 6500.00 to learn option trading with TopTraders. This is the biggest mistake or loss i have had in option trading. Big rip off.

  • On 08/30, Pete Stolcers said:

    Hi JoAnn,<br><br>Thanks for the comment. It will help others. Please spread the word to other option traders and help me grow this free resource.<br><br>Pete

  • On 09/15, David said:

    I have found in my research optionscentral.com is best for free online classes and videos

  • On 09/15, Pete Stolcers said:

    Thank you David. I can’t confirm or deny your claim because I have not seen the videos. However, R.F. Lafferty specializes in option execution.They have been around a long time and I have found their pricipals to be very knowledgeable.<br> <br>I’m currently evaluating an educational program. It has all of the makings of a good one. I’ll keep you posted.

  • On 09/21, Dan said:

    The OIC (Option industrial council) provides free seminars, webinars, and option information including calculators, which are pretty good. The instructors are from the CBEOE (Chicago Board of Option Exchange). Of course, the CBOE is an excellent source and they offer reasonable priced seminars and webinars too. Of course, this site and others including Schaffer, McMillan and the like have a lot of information on their sites. I have included links to the OIC and CBOE below. I hope this helps a little.  <br><br><a rel="nofollow" href="http://www.888options.com/seminars/default.jsp">http://www.888options.com/seminars/default.jsp</a><br><br><a rel="nofollow" href="http://www.cboe.com/">http://www.cboe.com/</a><br><br>Respectfully,<br>Dan! <br>

  • On 12/19, the finance ninja said:

    My input is read books, do practice trades, and watch a few stocks to learn them like human beings.  If you read Introductions to Options it will tell you everything you need to know for $7 on amazon.com Then check out Professionl Candle Stick Tradings by Bigelow which will run you $20-80 on amazon.com

    And I’ve traded both Puts and Calls making money with bull and bear markets

    Those two books alone are worth $20,000 to me.  -FN

  • On 03/07, Ronaldo said:

    What’s your opinion about Option education by Options Unversity??

    Thanks,

  • On 03/07, finance ninja said:

    I think Options University is a ripoff.  Save your money and goto the local library to borrow some books for FREE.  You will learn something from the course, but you are overpaying for information you can receive in any technical or how to book on options and stock charts.  One of my friend spent $10,000 on the videos and uses their system and makes $0 and still doesn’t even trade.  Just practice trading options and you will learn more that way then any other.  Sure, it doesn’t sound like fun, but if it doesn’t then you are in the wrong business of making money.  I do options because I absolutely love it and I’m full of zeal when trading.

    good luck -FN

  • On 03/07, Pete said:

    I don’t feel that the Options University is a rip-off. I have reviewed a decent portion of their content and I felt confident enough in it to put it in my blog. The content is accurate and informative and illustrative. Anyone who was a Specialist in Dell knows options.

    As for the Finance Ninja’s comments, there is truth to what he says. Most of what can be learned has already been written. Buy Larry McMillan’s book - Options As A Strategic Investment and you will never suffer from insomnia. Larry is a good friend and I say that jokingly. Read it many times. If you understand half of it, you will know more than 90% of the people trading options. The Ninja is also right on another point. Going to a seminar or watching a video is not going to guarentee success. It will only help pave the way.

  • On 05/14, Hans said:

    is there anyone that has done freely’s options seminar by clemen chiang ? is his method really working ?

  • On 04/06, Nadia said:

    very helpful ideas.I feel reading books from libraries will also provide some useful knowledge and then you can decide upon attending the course to get more info.

  • On 05/25, Cathy said:

    Good sharing. Its an alarm to those who are willing to attend any seminars. After reading this post, we should think twice before we register to any seminars.

  • On 08/19, jeff R said:

    Do you/have you ever traded options on ETFs.
    If so/not, why?

  • On 08/31, adam said:

    thanks for the info. I was about to attend a couple of seminars myself. I guess i’ll have to rethink my moves. Thanks.

  • On 09/09, Pete Stolcers said:

    Hi Jeff,

    I have traded options on ETFs, but I would rather find the best stock in the index and take a position in it. For liquidity reasons, institutions have to stick to the ETFs. We are all small, nimble traders and we need to use that to our advantage. Stick with stocks.

  • On 09/15, Bill Hein said:

    I also suggest read, read and read more good books; free educational materials and videos on certain websites (those expressed above) and locate and experiment with available (a lot free) stock and option on-line tools.  And participate in blogs and most important Pete’s Educational Writings and blog.  Folks, this is a very good site.

    I would also like to high-light two paper back books concerning option education that have helped me the most and they cost less than $20-$30 per title. They are, “Getting Started in Options” and “Winning with Options”, by Michael C. Thomsett.

    Having said that, I think some supplemental stock/option on-line or home study courses in the price range of ~ $300 to a max of $600-$700 may be beneficial.  I purchased “Dr. J” Jon Najarian Home Study Course, maybe a little overpriced at $395, but it is well written and pretty good.  Also, as a gift I have Optionetics Study Course “High Profit, Low Risk Trading”, which is not bad but I don’t want to hook up with George Fontanills; his trading materials and related costs are never ending. For Gods sake, do not buy “Skill Traders” materials, what a rip-off.

    Someone please answer, for me “how to find the better (or best) underlying stocks for option trading”.  Seemingly, the stock selection will have different characteristics depending upon the option strategy selected for “the now” trading.  Probably a few days later the initial strategy is no longer profitable and the next stock selection is needed and vital.  Really, really attempting to keep the stock technical analysis reasonably unwieldy past moving averages, support/resistance and MACD; are Candlesticks and perhaps Pivot Points Charting sufficient?  Or Not? I know there are additional charting applications that some think are essential but I do not want to spend all my time with several different indicators or charting schemes. Again, I have difficulty going all the way with stock TA/Fundamental analysis when I might save time and money by selecting optional stocks from the stock listings recommended by such services as INO.com Market Club, Trending 123 (an excellent stock trading educational site and Reco’s services) and maybe one of the best stock pickers Louis Navellier’s Blue Chip Growth and Emerging Growth. But with Louis keep close watch on when you think it is time to close the position, his capital preservation schemeis lacking in my estimation.

    I am definitely going to subscribe to some of Pete’s services but for a portion of my portfolio I would be amenable to study and explore some additional trading strategies.

    Can anyone respond to the worth or not of the following option/stock trading systems/strategies:?

    1)"The Profit Forecasting Code”, Vision Investing
    2)"Wealth Building Machine”, Chuck Hughes
    3)"Insider Secrets To Making Profit-Rich Stock Trades”, Jack Carter
    4)"Trading Options Visually”, Paul Forchione
    5)"Quick Wealth Options Strategy”, George Leong
    and....
    6)"Options Success for Everyone:, George Angell
    Some cheap trading scheme offerings, turn out to be you (or me) really paying for their PROMO for additional materials/services to purchase.

    Thank You Pete, for allowing questions/suggestions concerning other option services and maybe it is an injustice to you? If so, I will not post any more such material.  It is just that the trading educational world has so many sharks that if we save others (and others save me) from spending a hundreds of dollars on worthless materials it is a tremendous service.

  • On 02/04, Steve Place said:

    I’ll have to toot my own horn as well. My blog specializes in option education.

  • On 02/08, financeninja said:

    i second that.  andrew is right.  any thing you’ll ever want to learn about options, stock, mutual funds, real estate, ex. are in books. - free - at the library.

    i dare you, go to a library and check one out!

  • On 02/14, henry said:

    free education is great but remember people have to eat and pay the bills...if you find a good successful trader with a edge system than be prepared to pay for it...do you want to be paid for your time? or just have peole leaching off you?

  • On 02/17, Pete Stolcers said:

    The key is finding the right teacher and there are more bad than good. If you are paying thousands of dollars to hear someone teach moving average crossovers and head & shoulders patterns, its a waste of money. Read a book on techinical anlaysis.

    On the other hand, if it is a proven trader with his own systematic approach and that is the lesson, the education could be well worth the price. 

    My point is be careful and know what you are buying.

  • On 02/20, David Parizek Jr said:

    I think the point about trading small size to begin with is the MOST important here.  And you do not have to spend a ton on books - hit your library and read them for free.  And if your library does not have them they can probably do an interlibrary loan.  Then take what you are reading and apply it - but with really really small size.  Cuz it takes time to find the approach that works best for you.

  • On 06/24, Bing said:

    I have also attended expensive seminars that did not improve my chances at trading. Investools has a $3,000 stock and basic stock options seminar with 6 month use of their stock screening software. The software performance is mediocre compared to the highly profitable examples in their infomercial. Another vendor, Chuck Hughes charges $5,000 to “watch over his shoulders” as he trades options his trading account, but then you find out that many trades are hypothetical trades, and he hold on to losing positions very long until the market turns around and he liquidates them with profit. Furthermore, Chuck Hughes salesmen entice people with Chuck’s so-called 90% profitable trades, and 100% money back guarantee which is worthless because he never refunds any money. If after one year of trading his recommendations you did not make any money, your subscription to his advisory service will be extended for another year, but you will never get your money back.

  • On 12/11, JonJon said:

    Options University is running Internet Reviews of themselves. Google ‘Options University Ripoff Report’ or ‘Options University Reviews’. What you’ll find are websites in which this outfit makes themselves out to be someone else reviewing themselves. In addition they claim to have perfect ‘stellar’ reviews on Ripoff Report.com when in fact they’ve never been reviewed by Ripoff Report. Try a search and find out yourself.
    What sort of unscrupulous marketing trick will OU come up with next?

< Back