Best Options Trading Services – 6 Warning Signs of a Bad Advisory Service

There are countless subscription-based option advisory services available for the individual trader. If a service enables you to significantly increase your returns, it will likely be worth the cost. Unfortunately, there are a lot of bad option advisory services out there as well, services that will actually lose you money. Best Options Trading Services

How can you tell the difference? Here are six warning signs of a questionable option trading service:

1.) It sounds too good to be true. Yes, it’s true you can make a lot of money trading options. Options are leveraged instruments after all. But that means you can lose a lot of money, too. In order to make monster-sized gains you either have to be very, very lucky or you have to take monster-sized risks. Beware the services that imply or suggest (legally, they know better than to come straight out and claim it) that you’ll soon be able to retire and live a life of tropical luxury.

2.) References to secret strategies only the pros know about. It would be nice if there really were secret strategies you could adopt to consistently make lots of easy money. Unfortunately, there aren’t. Professional traders may employ a variety of advanced strategies, but these are not closely-guarded secrets. Any option advisory service using this sales line hopes you’re new to trading options and have yet to discover the many options-related educational websites offering a wealth of free information.

3.) Long only strategies. If an option trading service merely provides a list of call options (or put options) for you to purchase, run the other way. Simply buying calls or puts is, in general, a sucker’s game. It’s the options equivalent of buying lottery tickets. Or here’s another analogy from the world of basketball: imagine that someone offered to pay you $1000 for every basket you could sink from half-court and that you could take as many shots as you wanted. Sounds like a pretty good deal, doesn’t it? But here’s the catch. The other part of the deal is that you have to pay $100 for each shot you’re allowed to take. I think it’s safe to assume that you’re going to go broke a lot sooner than you’re going to become a millionaire.

4.) Touting recent winning trades only. There’s nothing wrong with a service marketing itself on the strength of its successes. But a huge red flag should be raised when a service hypes a select few of its trades to show you what you “could have made” had you been a subscriber. Read the promotional material very carefully. Did those winning trades represent all of the service’s recommended trades? Unless the marketing material expressly says otherwise, my guess is that there are a whole lot of losing trades they’re not telling you about. Best Options Trading Services

5.) Little or no transparency. Any legitimate option advisory service offering true value will be open about their results, their offerings, and their methodology and processes. Don’t be seduced by hype and marketing gimmicks. Demand a track record or some other method by which you can establish some genuine level of trust or confidence prior to subscribing.

6.) Get rich quick. Trading options can be very lucrative compared to trading stocks. But beware any service that tries to convince you that you can make a ton of money in a short amount of time with limited start up costs and virtually no effort on your part. You don’t have to be obsessed with trading options in order to be successful. Trading doesn’t have to consume every waking moment of your life. But don’t be tempted to jettison your common sense, either. Anything you want to be successful at is going to require time and effort.

Conclusion:

I do believe there are legitimate option advisory services out there (I’ve benefited from some myself), but there are a lot of bad services out there, too. Keeping the above checklist in mind will help weed out a lot of the ones you will do very well to avoid. Best Options Trading Services

Article Source: http://www.articlesbase.com/investing-articles/best-options-trading-services-6-warning-signs-of-a-bad-advisory-service-3500174.html

About the Author

Always dream of being Rich? Never able to make a Consistent Profit through trading?

Get your Best Options Trading Services and be Successful forever!

Try this Penny Stock Prophet and be Financial Free in 6 Months!

Trading Options by SmarTrade

Best Options Trading Services – 6 Warning Signs of a Bad Advisory Service