Trading options can seem complicated and daunting for beginners who are trying to understand not only the strategies and terminology but also the disciplined mindset required.
To be successful, there are some important initial steps and principles for beginners to understand. Real Money Pro and veteran options trader Tim Collins caught up with Real Money colleague Bob Lang to break it all down.
"I can go and read all the books but until I actually have a trade that is in front of me and until I actually execute a trade in front of me, I'm never going to balance the emotion of those moves", says Collins.
Options trading can be a profitable endeavor with limited risk if done properly with the right set of tools and discipline. The Real Money Pros know this from experience.
April is Financial Literacy Month. So, be sure to give yourself the gift of financial education. Watch the entire interview (here) which breaks down the many aspects of options trading.