Learning to Trade Options by Picking One Stock

Learning to trade options can be a little overwhelming when you first get started.

Most people jump right in, make a few bucks and then start YOLOing on every hot ticker and blow up their account.

Seen it happen way too many times. 

Just because you got one trade right doesn’t mean you’re Warren Buffet.

Making money with trading is about success over the long run, across hundreds if not thousands of trades. 

So how do you prevent this? 

One easy way is by learning by only trading one stock.

Trading only one stock at first has a number of benefits. Let’s dive into a few.

Overtrading is Dangerous

The main reason trading only one stock is good for beginners is because it stops you from over trading. 

Over trading is opening too many positions, across multiple tickers, too quickly. 

Learning to trade with a single ticker allows you to cut out a lot of the noise. 

You narrow the focus. One ticker, fewer positions and less things to keep track of. 

Learning to Trade the Basics

A benefit of less things to keep track of is that you can actually learn the basics

What does PE, Market Cap, Daily Volume, Float, etc all actually mean?

How do you look through financials or earnings reports? 

Trading options? How do the greeks options pricing over time?   

It’s easier to do due diligence when it’s only one company you’re looking at.

Patience is the Key

Last but not least, trading a single ticker will teach you patience. 

Learning to control emotions is the foundation of all trading/investing methodologies.

Successful trades take time to develop.

Having positions in only one company will teach you to not keep looking for the “next trade”. 

Do you due diligence, time your entry, and…..wait 

Just because your research was correct doesn’t mean the stock is going to shoot up as soon as you open a position. 

Give your play time to develop and collect your tendies down the road. 

At the end of the day, learning to trade options or stocks isn’t an easy journey. 

Mistakes will be made and lessons will be learned (hopefully)

Make it easier on yourself by starting with a small amount and picking only one stock to trade at first. 

Once you get the hang of things, open it up and start learning about other companies. 

All good things come with time, just don’t jump in the deep end on day one.