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Tuesday, July 22, 2008

How not to learn to trade options ...

1) Know nothing about the stock market and trading stocks

2) Begin with covered calls (synthetically short a naked put)

3) Take a multi-thousand dollar 2-day option trading course

4) Pay for an expensive subscription option trading tool / platform

5) Take another "advanced" 2-day option trading course

6) Paper Trade (Good if you know what you are doing. Bad if you are paper trading without knowing what you are doing - at least it is not "real" money but it is time not well spent.

7) Try some real trades (thinking maybe you will get it right with "real" money). Lose money. Become frustrated.

8) Back to step 3 ...

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