- Day traders, Speculators, and Hobbyists today have access to various Internet and Mobile based trading platforms that can help them trade like professionals.
- The reality of the market place is that your broker might not necessarily trade on your behalf, but theirs. The pros know how to trade, but we all had to start with the basics and will have to learn how to control your emotions.
- With the history and basic knowledge it is obvious that no one can explain how the market works or strategies in a couple of paragraphs but to learn how to trade like the pros you have to understand the market. You have to begin with the proper mindset to trade like a market pro and you must practice, practice, and practice.
Today's investor has a wealth of tools at their disposal that were unavailable to previous generations. With the use of the Internet based and mobile trading platforms, "Day Traders" ,"Speculators", and Hobbyists are better equipped to wage battle on their own terms rather than be at the mercy of the market. A professional is one who has taken the time to perfect as best they can their methods of trading from which they derive their income. However for the average investor out there the waters that enter into are a vast ocean infested with not only delectable and compelling treats but its also filled with dangerous creatures looking for their next prey. We won't jump into the deep end just yet as there has to be training in the shallows to ensure that you'll have a fighting chance to survive in the vast ocean known as the marketplace.
We've all seen the brokers trading in the "pit" or on the trading floor in an open outcry system bidding and buying and selling all types of contracts. Understand that brokerage firms are not necessarily trading on your behalf, but of course on trading on theirs. In the case of the futures market brokers are not ever cheering for you to have a winning trade unless you are in the same positions as themselves. Just like in a casino the odds are not in your favor. This isn't meant to scare you off or deter you from trading it is just the reality of the marketplace. There is a "zero sum" game afoot here and just like in the casino when you are winning its probably best not to press your "luck" for too long. Sooner or later the house will recover their losses due to payouts.
The pros know how to trade as we have been doing it for many years, but we all had to start with the basics and although I know many of the major players in this market and honestly like me they put their pants or skirts on one leg at a time and there aren't too many "experts" only those with years of experience under their belts. So you must understand the basics and you will have to learn how to control your emotions as they will motivate you to act in a way that will usually make you very very sorry you didn’t keep them under control.
With the history and basic knowledge laid out before you it should be obvious that no one can explain how the market works or strategies in a couple of paragraphs but to learn how to trade like the pros you have to understand the market. One of the best authors to learn from is Cornelius Luca. Once you have the basics of the market then you have to learn trading strategies which can be complex. One of the best teachers out there is Raghee Horner. Both authors are quite active and you can find their work quite easily. You have to begin with the proper mindset to trade like a market pro and you must practice, practice, practice. Take it from me
Options trading involve significant risk of loss and may not be suitable for everyone. Options & cash markets are separate and distinct and do not necessarily respond in the same way to similar market stimulus. A movement in the cash market would not necessarily move in tandem with the related options contract being offered.