I've seen a lot of questions with regard to option services and even stock picking services. These are the services that nearly guarantee profits and show you an "easy" even "lazy" way of generating monthly income. I think most of the readers will agree that these services need to be avoided, but for those that are on the fence with the issue, I'll state my case.
- They haven't discovered a "little known secret" that only 1% percent of traders know about.
- That 90+% win rate is probably true, but those 10% losers will wipe out months or years of gains.
- Even if what they teach has an edge, you could pick up the same technique through a book or probably even a free educational source.
99 times out of 100 these services are there to separate you from your money. The free seminars at hotels are great opportunities for them to up sell you. Those late night rags to riches stories where you follow the little green and red arrows make it so easy. It isn't. Don't be a gorilla!
The only rare exception where you'd pay might be a mentor type service. A beginning options trader is probably overwhelmed with what they've recently tapped into. Options are a complicated vehicle that takes a lot of time and effort to feel comfortable with. It took me a couple of years of on again off again learning. I personally prefer books and educational web sites and webinars. If you're the type of person that needs to hear it from another person and have a dialog, then a mentor service *MIGHT* be for you. You still must be careful. You'll want to look for someone that's teaching you the skill, not selling you picks that are just bound to go up 40000% if you just pay the $100 per month. Also, mentors are usually very expensive. If you can't validate their track record or find some satisfied students, it's best just to pass them by.
Just remember, be a skeptic. Holy grails do not exist, lay off the snake oil. Your trading account will thank you.
I'll leave you on a positive and productive note with some book ideas for beginning and intermediate option investors and some of my favorite places to pick up information on options.
Beginning Options Books
Intermediate Options Books
Some good, informative web sites
Anyone else, feel free to chime in with some comments regarding your favorite options educational resources. I see this question asked a lot.
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