Options Trading For Malaysian

Before you enter the market, learn the basics of options first, what is options(call, put, intrinsic value, time value), , how does it work, options strategies (ladder, spread, guts, straddle, strangle, butterfly, condor) try to intimidate you, if you afraid, stop reading here. It's not hard to find it through internet searching.

You can practice in Virtual Trading first, some brokerage did provide virtual trading, you can also register first and transfer money to your account later.

Step#1 Select The Market 

Choose the market you want to trade, Local, US, UK, Singapore, Hong Kong, China, India....small market has no volatility,  monopoly/oligopoly issue, easy to manipulate. My choice goes to US Market. So disappointed with local market as no many options trading strategies can apply here.

Step2# Open an US online brokerage account

Choose the options trading account which suite you the most, Online Stock Trading Reviews 2012. Sign up brokerage account for Non-US resident, fill-up online registration form, document required like US withholding tax form (tax and death is inevitable), income statement, bank statement, etc.

There are five levels for options trading. Beginner will be assigned Level 1 or 2 by brokerage firm.

Level 1 - Covered Call writing & Protective Put

Level 2 - Level 1, Calls and Puts Buying, Writing of cash Covered Puts & Purchases of straddles or combinations

Level 3 - Levels 1 and 2, Equity DEBIT spreads, Covered Put writing

Level 4 - Levels 1, 2, and 3, Equity CREDIT spreads, Naked (uncovered) writing of equity options, Uncovered writing of straddles or combinations on equities

Level 5 - Levels 1, 2, 3, and 4, Uncovered writing of index options, Uncovered writing of straddles or combinations on indexes, and index spreads.

Step3# Start To Trade

There are lots of newsletter, trading guides, options trading tips, you might subscribe many of this so-called easy-trading, profit-proven program, end up heading nowhere. Always back to the BASICS. Few weeks before the earning report or any big event announcement, study the company, if you expect it's price rise, buy call, price fall, buy put. And also watch out the options time value, sell the options before it expire rather than exercising it. Cause you might not have enough money to exercise the options. Options Trading can be done with as low as few hundred bucks, Game for Poor. 

"Do you fear of ghosts? It scared you because you don't even know it exists....The more you fear, the more you need to overcome it....imagination make the impossible to become possible..." - Stephen Chow

If ghost did exist, sowhat...you already knew it. Fools take action, greater fools take no action.