We are currently living in a time where the world of trading and investing is more accessible than ever. Almost every corner of the internet offers learning opportunities for those hoping to improve their financial literacy and learn how to trade smartly. Aristotle Varner has created a new and important resource to help traders navigate the investment world with his book Aristotle’s Investing Guide. The book explores topics such as basic stock market terminology and investing strategies for beginners. Also covered extensively within the guide, is the concept of options trading. Options are a type of derivative security and an option holder has the right to buy more stock options (call) or sell a stock option (put). Here, Varner shares actionable steps that you can take to master options trading.
Close trades at 50% of their profit Varner warns against not wanting to sell options unless they are close to 100% of their premium. Betting this high is more of a gamble than you need to take. He emphasizes that if you have managed to earn 50% of the maximum profit potential, it is acceptable to cut and run with your profits.
Keep your portfolio diverse Varner highly recommends keeping your portfolio as diverse as possible. He explains that concentrating your risk on only one market area leaves you liable to the annihilation of your portfolio. He stresses that as a trader this is a position that you never want to put yourself in. He shares that mastering option trading means accepting risk, not inviting it in.
Turn on your text and email notifications Varner urges aspiring traders to take time away from the trading platform when possible. He encourages setting up your text and email notifications to track trade movements so that you can remain informed without staying glued to every twitch of the market. Varner elaborates that taking a step back from the trading platform will help to keep you level-headed and prevent you from making emotional trading decisions.
Aristotle Varner believes overall, that having the will to learn and take advantage of every source of information open to you will ultimately make you a better trader. With the right attitude and resources, Varner feels that anyone can master options trading.
Aristotle’s Investing Guide: Aristotle Varner Reveals Actionable Tips To Master Option Trading
