If you're new to stock or options trading here are a few helpful tips that may save you from getting pummeled by pro traders that do this for a living.

Although the majority of our members have been with us for years, we do get new members that apparently just recently started trading and they usually sign up & stick around for a couple months and then disappear for a few months, only to come back.

What happened? Why did they quit after just a couple months only to come back again?

Well, one thing they ALL have in common is their trading allowance (per trade) is just way too low and remarkably just about the same as the other "newbies". How do I know this? Well, when members sign up to get alerted of our own options trades as we place them, they need to fill out a short form and one of the questions is, "What is your average trading size?"

The new investors all put the same thing, $250 to $500

When I read that on their account set up form I just shake my head because they undoubtedly have unrealistic expectations and they can't compete with the big boys that will eat them for lunch. You will never reach your goals in a timely manner risking just $500 per trade

Why do I say that? Because if you're only willing to cough up say $500 bucks on an options trade you could be up 33% easily in an hour or so, but will they sell for a 33% profit?

 My guess is, "Nope, not a chance." One misconception about trading options is that you will make 300% to 1,500% on every trade. Yes, making 300% - 1500% on a stock options trade is possible and happens many times but the fact is that stock options lose money over time and that the quicker they "expire" the higher the risk and with great risk comes great reward, IF your timing is impeccable.

Sounds easy right, "All I gotta do is get in at the bottom and ride it to the top, right? 

Easier said than done, the fact is if you get in a good trading group (such as Day Traders Group) you will win 85% of the time, sometimes more but that means if your allocations are all over the place then there is a good chance you will blow your account and blow it quick.. How is that?

Let's say we send you a stock options trading alert like we did with members on 11-28-17 on BAC with a whopping 183% gain, when you got the alert you reached out and spent a whopping $250 bucks on that trade, a couple days go by and BOOM, you just made a 183% but the problem is being such a big spender you only forked out $250 bucks so you missed out on the big money.

So, the next trade alert you get you go all in and slap 1/2 your account or all of it on the next trade alert. You figure that this is easy money and these guys are good so why not, right? 

So, you open up your free stock chart and set it to the 1 minute time frame like a true noob then panic when the stock oscillates up and down. Your biting your nails as the stock makes a normal re-trace unbeknownst to you that price is merely pulling back to a Fibonacci level.

Continued on page 2 Stock option trading guidelines