Ft. Lauderdale, Fla. (Vocus/PRWEB) March 01, 2011
Online broker TradeKing (http://www.tradeking.com) announced today a new series of YouTube videos focused on helping investors avoid making the top 10 common mistakes involving options trading. These 3 to 10 minute videos, available at http://www.youtube.com/tradeking, feature TradeKing’s Options Guy and Senior Options Analyst, Brian Overby, sharing informative tips and insights in easy-to-understand, plain-English terms that investors of all levels can understand. The TradeKing YouTube channel features a variety of concise, entertaining educational videos, refreshed on an ongoing basis, covering popular trading topics for stock and options traders. Users can access these videos from home or on the road via their mobile devices, and can also subscribe to receive automatic updates as new content is released.
The first three installments in the 10-part “How to Avoid the Top 10 Mistakes New Option Traders Make” video series are now live on YouTube. These videos include:
Mistake 1: Not Understanding Options Leverage
Options traders often struggle with the concept of leverage in options trading. In this video, Overby provides an example of two different approaches a beginner trader could take and explains how starting with a single option contract allows the beginner to take advantage of the leverage of options trading.
Mistake 2: Not Exploring Strategies Beyond Buying Out-of-the-Money (OTM) Call Options
While buying a call option may feel safe because it matches the pattern an investor is used to following as an equity trader (“buy low, sell high”), buying OTM calls outright is one of the hardest ways to make money consistently in the options world. In this video, Overby provides an overview of alternate strategies traders can have at the ready.
Mistake 3: Not Expanding Your Options Trading with Spreads
Too many rookie traders limit themselves to buying call options or selling covered calls, not realizing options offer a range of possible approaches that might better fit current market conditions. In this video, Overby explains how beginners can learn to use spreads to expand their repertoire.
Upcoming YouTube “top mistakes” videos will include not having a definite exit plan prior to options trading, trading illiquid options, and waiting too long to buy back options you’ve shorted. TradeKing currently features 13 education videos free for investors on its TradeKing YouTube channel. To view these videos, visit http://www.youtube.com/tradeking.
TradeKing (http://www.tradeking.com) is a nationally licensed online stock and options broker offering simple, low cost online trading fees ($4.95 per trade plus $.65 per option contract) with no hidden costs or account minimums.1 A pioneer in integrating new financial social media as part of its innovative online equities, options trading and fixed-income trading platform, TradeKing has received multiple discount broker awards from top industry sources and was rated best in customer service by SmartMoney2 Magazine, ahead of OptionsXpress, Scottrade, Fidelity, and TD Ameritrade. (June 2010 SmartMoney Broker Survey).
Follow TradeKing on Twitter at http://twitter.com/TradeKing,
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Options involve risk and are not suitable for all investors. For more information, please review the Characteristics and Risks of Standard Options brochure before you begin trading options. Options investors may lose the entire amount of their investment in a relatively short period of time.
TradeKing provides self-directed investors with discount brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice. The content of this press release is provided for educational and informational purposes only, does not constitute a recommendation to enter in any of the securities transactions or to engage in any of the investment strategies presented herein, and does not represent the opinions of TradeKing or its employees.
Online trading has inherent risks due to system response and access times that vary due to market conditions, system performance and other factors. An investor should understand these and additional risks before trading.
Multiple leg options strategies involve additional risks and multiple commissions , and may result in complex tax treatments. Please consult a tax professional prior to implementing these strategies.
(1) Please see http://www.tradeking.com/fees for more details on trade commissions for low priced stock, bonds, mutual funds and other securities.
(2) TradeKing was ranked #1 in Customer Service in the SmartMoney June 2010 Broker Survey based on the following categories: Mutual Funds & Investment Products, Banking Services, Trading Tools, Research, and Customer Service. SmartMoney is a registered trademark of SmartMoney, a joint publishing venture between Dow Jones & Company, Inc. and Hearst Partnership. Supporting documentation for any claims, comparison, statistics, or other technical data, will be supplied upon request by calling 877-495-5464 or via email at service(at)tradeking(dot)com.
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