Can you make a living trading options In fact, has anyone ever made a living just trading options

Options trading has been the centre of much debate of recent years Is options trading dangerous

Swing trading is one of the most common ways of trading in the stock market Whether you know it or not, you probably have been swing trading all these while

One of the greatest and most talked about risk in options trading is the fact that you could lose all your money in options trading very quickly Well, many people lose all their money in stock trading too, so what makes losing all your money in options trading such a big deal

Options trading is as simple as buying call options for rising stocks and put options for falling stocks However, once you go beyond the initial stage of call and put buying, the whole universe of thousands of options strategies open up before you

After spending much time explaining the differences between options trading and futures trading to beginners to derivatives trading, I think its time to touch on the similarities between options trading and futures trading Is options trading and futures trading really that different

Futures trading can be used for two main purposes; Speculation and Hedging While most retail futures traders get involved in futures trading for the purpose of leveraged speculation, it cannot be forgotten that the true purpose of futures contracts is for the purpose of hedging

If you are reading this article, chances are that you might have come across or have some kind of knowledge in the term “i-Ching” You must be wondering, how in the world is a five thousand years old classic related to modern options trading

Futures contracts were originally designed as hedging tools or “insurances” for the trading of commodities like wheat As the production of wheat takes a long time and prices may change for the better or worse during that year those wheat takes to grow to maturity, the buyer of the wheat can go into an agreement with the farmer to buy their wheat upon harvest at a price agreed upon right now

Lately, I have been asked about what I think is the single key that determines if you would make it as a rich man in options trading This is an extremely interesting question as I am not someone inclined to believe that any single reason constitutes to the success in anything at all