FAQ - Options Trading

 

Here are answers to some frequently asked questions about day trading that can help our clients learn more about options trading and our services.

How much money do I need to start trading options?
The Securities Exchange Commission requires option investors to hold at least $25,000 in a verifiable trading account. As a result, we highly recommend that you have this on hand before you use our services.

How should I start using your services?
We suggest that you conduct real-time paper trades for 90 days while using our services to get an idea of how the options markets work. This can help you in the long run because you can learn how to avoid many of the mistakes options traders make that can cost you a lot of money.

What rate of return should I expect when I trade options with your system?
Depending on your risk tolerance and how well you use our system's guidelines, your rate of return could average as high as 10-21% for single-day trades and up to 33%-50% for long-term trades. However, be sure to ask a reputable broker for more information because trading options introduces investors to special risks that can significantly impact your rate of return.

Which service is right for me?
Most of our clients start off by subscribing to our basic service to get an idea of what we can do for them. About 1/3rd of these clients eventually sign up for our more advanced services after using our basic services for about 90 days. As a result, we suggest you sign up for our basic services for 90 days to see if our services are right for your trading needs.

How complicated is your stock option trading system?
We use a simple buying and selling system that focuses on puts and calls that were created during the current month. This system includes a buying, selling and stop-loss strategy that recommends users hold options for no more than four days.

Moreover, we use special statistical methods to define a current "bell curve count" that uses various price support and resistance lines to identify potential short-term bias points and other market signals that might benefit our clients.

Does your option trading system support automated trading?
It depends on the type of signals you use and your broker's automated software package. Therefore, it's a good idea to decide on which signals you wish to use to trade before visiting your broker to set up an automated trading scheme.