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How to turn trading into more than just a hobby

February 12, 2020

February 12, 2020

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How to turn trading into more than just a hobby

Some people choose to trade Options to generate extra income, others to hedge their risk or simply because they enjoy it and are interested in the markets. There is a difference between trading for fun and doing it on a more professional level. It doesn’t matter if you’re an Options beginner or an experienced trader. Either way, you can turn Options trading into more than an after-hours hobby.

Some people choose to trade Options to generate extra income, others to hedge their risk or simply because they enjoy it and are interested in the markets.

It doesn’t matter if you’re a beginner or an experienced trader. Either way, you can turn Options trading into more than an after-hours hobby.

If you’ve clicked on this article, you probably have a general understanding of how Options work and the strategies used to make a trade. When it comes to taking your Options skills and passion to a more serious level, there are a few considerations to keep in mind.

Firstly, it’s good to start with markets that you’re familiar with and build confidence in your understanding of that market. A key tactic is to monitor the market data using stock screeners and implied volatility rankings.

Focus your trading strategy on logic and data, and resist the urge to trade based on emotion or “gut feelings”. While it’s difficult to completely remove emotion from the equation, it is important to have a system to help manage it so it won’t cloud your judgment while trading.

Be sure to diversify your portfolio and avoid putting all of your eggs in one basket. Although there is always some risk involved for each trade, you can manage your risk level through a strong diversification plan. Spreading your strategies to account for different market conditions can also assist in hedging any risk.

One of the most important things is to have a solid trading system with rules that allow you to trade in any market conditions. Setting up a system, following it and start treating trading like a business. You aren’t meant to win every single trade.

That is simply not possible.

Instead, your reliance on your system will make sure that in the long term, you are set up for success.

Just like if you were running a business, you may not make a profit every single day but you know that over time, your business as a collective will succeed and that is what sets apart a hobby trader from someone taking it to the next level.

Over the next three weeks we will be running a live online Options Masterclass series teaching you how to trade exactly like the professionals. Join one or more of the sessions here.

 

Past performance is not a reliable indicator of future performance.

Any advice contained in the class is general only and does not consider your objectives, financial situation or needs, and you should consider whether it’s appropriate for you.

Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or its underlying assets. You should only trade if you are confident that you fully understand what you are doing. If you are thinking about acquiring a financial product, you should consult our Financial Services Guide (FSG) at www.reachmarkets.com.au and the relevant Product Disclosure Statement first.


General Advice Warning

Any advice provided by Reach Markets including on its website and by its representatives is general advice only and does not consider your objectives, financial situation or needs, and you should consider whether it's appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG) including the Privacy Statement and any relevant Product Disclosure Statement or Prospectus (if one is available) to understand the features, risks and returns associated with the investment.

Please click here to read our full warning.

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