Options Made Easy: Your Guide to Profitable Trading, Second Edition

Chapter 1 Major Learning Points

Remember the six major prerequisites:

• patience

• perseverance

• knowledge

• honesty

• pre-planning

• discipline

Start to build a plan. The plan should encompass the following:

1.	What stocks or other assets should I be considering for successful trading?
2.	What direction do I feel comfortable trading in (up or down)? Could I consider trading put options if a stock or the market is falling?
3.	Have I checked the news items for the particular asset I am trading? Are quarterly or other results out soon? Is there a major announcement from the government out soon? Could these announcements affect my trade? Can I use them to enhance my position, or shall I wait until the announcements are made?
4.	Do I want to check whether this company ...