An emailer by the name of Daniel asked:
My question: Is “Essentials Of Trading” applicable to trading options? I was looking at trading options
The answer is yes -Â in two ways.
The first way my book is applicable to trading options is in the fact that it focuses on the foundational elements of trading in general. At its core, trading options is no different than trading any other market. You need to understand the mechanics of trading, price movement, and tracking your P&L. You need to have a strong trading plan which includes the what, when, where, how, and why of your trading. You need to have a trading system of some sort to determine when to get in and out of positions. You need to have good money management. You need to understand where the psychological pitfalls could trip you up. All of that stuff is discussed in The Essentials of Trading.
The second way my book is applicable to trading options is much more specific. It’s in one of the appendices where I lay out the methodology I’ve used for years trading options on the stock market. I didn’t put it in there to recommend it as a system for everyone. In fact, I’d venture to say most folks wouldn’t be inclined toward using it, but it does present an example of a trading plan and system which employs optionsÂ that’s well constructed.
If, by the way, you are looking for an introductory book on options trading you should give a look to Mark Wolfinger’s The Rookie’s Guide to Options: The Beginner’s Handbook of Trading Equity Options.