The Best Way to trade options
Trading options can be tricky, but here's a simple way to get started:
- Start with a paper trading account (fake money) using platforms like ThinkOrSwim's paperMoney
- Learn these basic strategies first:
- Covered Calls (safest)
- Cash-Secured Puts
- Only trade options on companies you know well (like Apple or Disney)
- Never use more than 5% of your money on a single trade
Important Warning:
Options are very risky. Many people lose money. Start with paper trading for at least 3 months before using real money.
Helpful Resources:
Remember: Never trade options with money you can't afford to lose. Always learn with paper trading first!