For the past three months, I have made it a commitment to pick up on options trading. This is more of a side thing I do after work. To clarify, I have zero knowledge and am not an expert in options trading. If you are looking for expert advice, then this is not a post for you. On the other hand, if you are interested in my journey, then feel free to read on. This will be a sharing of my options trading journey on learning the ins and out of option.
As at the point of writing this post, I am still in the process of understanding and learning on how options trading works. I first got to know about options trading through my sister and brother in law a few years back. It was just this year that I make it a commitment to learning more about it.
Why Options Trading and why did I decide to blog my journey:
I have invested a little in REITs, peer to peer lending, precious metals and fixed deposits following the concept of making your money work for you. Some are slightly riskier and some are rather stable.
Note: High return investment always comes with higher risk.
So why options trading when I could focus on my current investment. There is no specific reason why options trading. It just so happened that I got to know about options trading and decided to explore more about it. Secondly, it gives me the opportunity for me to pick up and learn on a new investment vehicle during my free time. Thirdly, it allows me to diversify my investment portfolio (hopefully).
I thought about blogging the entire process for the following reason:
1) This is part of the initial reason why I have created the blog in the very first place.
One of the reasons this blog is created to document my journey and progress throughout. Since I am planning to pick up something new. Why not blog the entire progress and journey. I might be able to look back one day and laugh about it.
2) Create accountability to focus and learn.
Accountability and discipline have been something I have been trying to work on over the years. I have started by working out more consistently which I share on my social media each time I exercise. By documenting my options trading journey, I hope to achieve something out of it.
3) Blogging about my journey helps in remembering what I learn.
It seems that writing anything down makes us remember it better. On the other hand, not writing things down and purely listening will make us forget. By documenting my options trading journey, I hope that it will help in strengthening my understanding of options trading. And hopefully, learning from others in the event that my understanding is wrong.
But really, my blog is dead so is about time I blog about something.
My Options Trading Journey
My learning will be through Option Alpha. The site was founded by Kirk who was an investment banker. I am in the process of learning and I really find the resources amazing. One of the more generous free resources available out there.
My action plan for my options trading:
- Go through the 3 video tracks available in Option Alpha.
- Paper trading through think of swim platform (by TD Ameritrade).
- Trade with real money.
I am currently going into track 3 with Option Alpha. Traded a little with paper money 2 months ago and have started with real money last month. As I began trading, there are instances where I still got confused with some of the concepts from the earlier track.
My plan is to relook into some of the track and to blog about it here to help me grasp it better and hopefully will be a good sharing for you.
Here is what you can expect for now:
- Sharing of my learning through Option Alpha.
- My own reflection and learning throughout my paper trades and real trades.
If you are interested in getting started, here are some great resources.
Learning Options Trading: Option Alpha