Hey, I’m brand new to this and I bought 7 shares of MSTX today, I’m trying to figure out how to use options in my Robinhood account. Any tips on a brand new trader please let me know, I keep losing money in the markets but I’m really honestly trying to learn.
Welcome to the world of option trading! I would suggest educating yourself on options and options strategies. The people over at Tasty Live have been doing this for years and have a lot of great free resources available. Since you are brand new, I would avoid leveraged products like MSTX. I would recommend trading indexes such as QQQ and SPY. Learn about selling vertical spreads. That is a strategy in which you sell option premium and your maximum loss on the trade is known before you enter. You can risk as little as $50 to $100 per trade. When you sell options, you can be profitable if the stock moves in your favor, stays sideways and even moves against you (a little). I would not be a buyer of options. When you buy options, you have to be right on direction by or before the option expiration. Hope this helps, thanks for watching. Here is a link to Tasty's option strategy guide. www.tastylive.com/options-strategy-guide
Do you trade MSTX? If yes, what price would you buy?
Hey, I’m brand new to this and I bought 7 shares of MSTX today, I’m trying to figure out how to use options in my Robinhood account. Any tips on a brand new trader please let me know, I keep losing money in the markets but I’m really honestly trying to learn.
Welcome to the world of option trading! I would suggest educating yourself on options and options strategies. The people over at Tasty Live have been doing this for years and have a lot of great free resources available. Since you are brand new, I would avoid leveraged products like MSTX. I would recommend trading indexes such as QQQ and SPY. Learn about selling vertical spreads. That is a strategy in which you sell option premium and your maximum loss on the trade is known before you enter. You can risk as little as $50 to $100 per trade. When you sell options, you can be profitable if the stock moves in your favor, stays sideways and even moves against you (a little). I would not be a buyer of options. When you buy options, you have to be right on direction by or before the option expiration. Hope this helps, thanks for watching. Here is a link to Tasty's option strategy guide.
www.tastylive.com/options-strategy-guide