By Josh S., Options Education Specialist and Guest Blogger
I began my career in the options industry as a broker assistant at a commodities broker, and the strategy of options trading sparked my interest. I started to take more options and derivative classes in my MBA program, and when I graduated, I got a job at Scottrade in the National Service Center. Now I’m an Options Education Specialist, and I get the opportunity to talk to a variety of people in the options markets – everyone from beginning retail investors to professional market makers.
As part of the options team at Scottrade, I am constantly part of new educational experiences and the best part is that I then I get to share what I have learned with our customers. In fact, I recently attended a panel discussion at the TradersExpo in New York City made up of individuals with diverse backgrounds in the options industry.
Each panelist had a different view of trading options, but there was one common theme: a rigorous trading plan must be in place before entering any trade. Most traders I’ve talked to spend a lot of time indentifying trading opportunities and strategies and are anxious to enter a position, but fail to develop a full trading plan. Just as much time and effort – if not more – should go into planning the exit and/or adjustment for the strategy.
By knowing your exit and adjustments before the trade, you can take the emotions out of the equation and make rational investment decisions. The next step is to stick to the plan.
Do you have a trading plan? Share your tips developing your plan below.
Josh S. has worked at Scottrade since 2006. He educates Scottrade customers on how to trade options through their Scottrade accounts or through OptionsFirst, Scottrade’s advanced options trading tool.
Hi Gerald! If youd like more information on where to find options research and information in your account, please give us a call at 800-618-7283.
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