10 Busted Myths of Options Trading
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Myth #1: Options trading is only for professional traders with years of experience.
Although it has long been held that trading options should be left to only the most-experienced traders, in recent years this notion has changed.
According to Tom Sosnoff of thinkorswim, "I think [options trading] has become [widely] accepted now. Five to seven years ago it was on the fringe. Ten years ago it was ... an alternative investment. Now trading options with penny wide markets and the ultimate competition for order flow -- it's like trading stocks.
George Ruhana of OptionsHouse agrees. "I think that there's no question that they [options] get accepted more every year -- and especially in a year like last year, where you had some people who had been making money as options investors."
Options trading just for the pros? Myth busted!
Next: You should only trade options in a tax-deferred account.
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