Is Trading Options Dangerous?

Is Trading Options Dangerous (1)The moment someone asks me what I do and I respond by saying, “I reveal the techniques professional traders use to create consistent cash flow on the stock market.” It usually gets one of three responses …

  1. A glazed look of confusion.
  2. The “That sounds dangerous!” pronouncement.
  3. Or “Oh Wow! Tell me more!”

With all the mystery surrounding the finance industry the first response is hardly surprising.  Those in the know like to keep it a mystery to the rest of the world. And when some form of discussion of what’s happening in the markets does occur, it could be said it’s more exciting watching grass grow.

The third one is always fun because you can always dive straight into a conversation and compare notes and experiences.

Mark Douglas in his book, “Trading in the Zone”, highlights how each individual brings their preconditioned notions to the market, which act as filters affecting our perception on how it is interpreted.

In other words, if you believe the stock market is dangerous, you need to ask yourself, how did you arrive at this conclusion?  What influences have shaped your perception?  Was it Hollywood, friends, family, or past trading experiences?

I have come to conclude that most things we do in life have an element of risk.  I’ve also concluded, doing nothing and sitting idle has probably a bigger risk attached to it!

Investing is about measuring risk versus reward.  And in terms of risk, addressing how it can be minimised is key. Taking calculated risks to assess whether it is suitable to act on is part of the due diligence process.

Is Trading Options Dangerous (2)I’ve asked the “is options trading dangerous” question to many course graduates from Trading Institute, and they have a similar response.  “Trading options is dangerous, if you don’t know what you are doing.”

It’s ignorance that costs you!  And that’s the same with anything!  Business, trading the markets, and even property investing can cost you if you are not in the know.

Ignorance is expensive!

Trading Institute graduates have invested in their education.  They’ve learned the mindset, discovered trading strategies that professionals use, and seen the practical systems a trader puts in place to run trading like a business.

To find out more, get instant access to your FREE introductory class “7 Things You MUST Know about Options Trading.

DISCLAIMER: Trading Institute is not a licensed financial planning firm. We are simply an education company, who will give you factual information. We do not give any general or specific advice around options, trading, or anything else.  Please see a licensed financial planner when it comes to any investment advice you need.

Derek Whitaker
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Derek Whitaker

Founder and Director at Trading Institute
The founding director of Trading Institute, an education company revealing the secrets of professional stock market traders
Derek Whitaker
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