| New and small investors alike can easily get involved | | | | trades in a row, you would have lost 15% of your |
| in stock options trading. Nevertheless there are many | | | | capital & still have 85% of your capital left. |
| pitfalls and questions that need to be asked regarding | | | | The lower you traded down your capital, the higher |
| options trading. If you are just getting started with | | | | the percentage of gain you have to achieve in order |
| options trading, you might at this point feel a bit | | | | to recover your trading capital. |
| overwhelmed. This is especially so since there are | | | | Here is a stock options trading tip. As stocks near |
| many choices with options and a multitude of ways | | | | the ends of their quiet periods, they tend to steadily |
| to trade these same options. | | | | rise in price in anticipation of the `strong buy` |
| To start trading it is advised that you have at least a | | | | recommendations most will receive from their |
| minimum capital of US$5,000 to trade options. Then it | | | | underwriters after the quiet period ends. |
| is essential that you practice good money | | | | When learning about options trading, it is important to |
| management with this capital. | | | | familiarize yourself with all the different types of |
| For instance, if you allocate only 5% of your trading | | | | options contracts that are available. |
| capital on every trade and you happen to lose 3 | | | | |