Well, if you're a smart guy or gal who's getting into options trading, you know that you want to get a subscription to a stock options newsletter. This valuable document, which these days is often an e-mail, can give you an experienced, professional insider's tips and tricks for strategies to try out and employ, and insights into certain stocks that you would have had a hard time finding out about yourself. A good stock options newsletter is written by people who have had the time to do a lot of the research you wish you could have done, and are written by wise investors and traders who can give you wise perspectives that, surely, if you but follow, will make you wealthy, healthy, and wise yourself.
Well...needless to say, it's not quite that easy. For the question becomes: which newsletter do you choose? A quick Google, Yahoo, or Bing search comes up with thousands! Now, do they all offer the same advice? Sometimes there's overlap, but the complete answer, of course, is no. If they did, there could be only one. So, how do you separate the wheat from the chaff, the good stop options picking advice from the bad? Whatever you read could lead you to great wealth, or it could crush you. You must pick a good newsletter, or else.
The first thing to consider when comparing one stock options newsletter to another is simply the different letters' past results. But what you really want to focus on here is how well the newsletter's picks have done within the last 10 to 15 years. This means that the picks are relevant. It also means that those who are writing the stock options newsletter aren't guys who got lucky back in the 1980s only to grow complacent, lazy, or otherwise incompetent and unable to keep up with the realities of today's market place.
In addition, those who write the stock options newsletter in question had better be actually investing in those contracts themselves. This goes back analogously to the conundrum faced by many a middle-class kid who wants to make big, big money and receives all kinds of so-called advice from his family about how to do that. But his family is middle-class--not rich. He wants to be rich. Why should he listen to the advice of those who have never done what he wants to do--even if they are his beloved family? It makes no sense at all. Same principle when considering a stock options newsletter. Are these armchair paper traders or hired ghost writers--or are they successful options traders who are telling you what they did and what they plan to do?
Any good stock options newsletter will offer you plenty of reviews of their past trading success. They will also be valiant in showing you where they went wrong in the past...and, how they corrected or learned from their error. They will also be able to demonstrate to you that the writers aren't in the grip of survivor bias. This is where historical data on past stock options trades are bought, computer models are created based on that, and then those models do very well--based on that historical data. Past success in stock options is only meaningful if it is carried forward and successfully applied to the new reality of the present day.
So, as an options investor, you need a good stock options newsletter. Choose one wisely and carefully.
