Why should you read a book on options? Rapid and severe declines in the stock market demonstrate that the buy and hold method of investing has a lot of risk and that traders need a different vehicle to control risk. Individuals who recognize and embrace the shift to a trader’s market have the best chance to prosper, and the best trading vehicle available is options. Options can help you in volatile and unpredictable markets by enabling you to profit in numerous ways.
Options are probably the most versatile trading tool today. No other investment vehicle seems to have such a unique set of characteristics and flexibility. Options have become a popular tool for individuals and, fortunately, you do not have to work on the floor of an exchange to understand options. Trading options can empower an individual trader to move quickly in comparison to institutions, which must stay invested at all times with large and diversified portfolios.
Your chances of success increase if you have a game plan, establish goals, and understand how options move. Focusing on becoming a better trader to make money should be the main purpose of reading a book on options. I realize that a book on options can also be read for the enjoyment of learning the theory, mathematical applications, and technical jargon. (Who would not enjoy learning about the assumptions underlying options?) There is nothing wrong with tackling the intellectual challenges associated with learning, but our time is valuable, and ...