Trading What You Don't Know
by Frank Soler of SolerInvestments.com
Have you ever been stuck in a situation you had never faced before and had no idea whatsoever to do?
Imagine playing in a baseball game and you had never watched or played baseball before. Have fun!
Yet, constantly, people jump right into trading a market they have no experience in and expect some magical success story to happen.
If you've never traded Options (substitute any market of choice here), you probably should learn how to trade them before you start trading the Options markets.
This is obvious, but ignored by so many. Don't trade any market you don't know and understand.
The reasons should be blatantly clear. IF they're not, don't quit your day job.
Learn about the market you want to trade. Practice a LOT. Learn more. Repeat.
On the other hand, the best way to learn something is to do it. But, don't risk a huge chunk of your money "learning".
Of course, if you're foolish enough to risk a lot, I'll love it, because guess who I'm trading against ;)
Frank Soler is a successful trader and Registered Investment Advisor. His company provides real-time Forex, Futures, Options, and Stock Picks, an eye-opening Trading Blog, and a free online trading education center.