May 21, 2024


Business – Your Game

Options Trading – Why Doesn’t Everyone Trade Options?

Options trading can bring you great rewards….provided you are prepared to take the time and learn how to trade options properly.

However a question often heard is:

“If options trading is so great and can make you loads of money…. and is not that risky then why isn’t everybody doing it?”

A fair question and one which could take over an hour to answer!

However the short answer is twofold.

Firstly options are still a relatively new financial product. This means that their existence is broadly out of the public eye. Unless you are actively looking to better your life and financial position you wouldn’t even know these investment products are out there.

Secondly, although Options trading is fairly simple, the language used in options trading is very specialised and exotic.

To put it bluntly, the terminology confuses and frightens most people. It’s as if you are speaking another language.

“Calls, Puts, Straddles, Naked shorts, getting filled.”

It’s double dutch to most people.

And when words are technical and complicated most people feel alienated….or worse, afraid. And when people are afraid they just don’t want to know. They think that they can’t possible understand what is going on and give up before they even started.

What you have to understand is that these are just words. Nothing more. All you have to do is learn what the words mean. Once you understand what is being said then there is nothing to be frightened of.

Options trading can certainly make a positive change to your life. Your first step in your journey is to learn about trading.