When you trade online, you are bound to surf the internet for information and tips. It is unavoidable to see lots of advertisements or sites that are offering free investing stuff just for signing up.

You are going to get quite a bit of email from these sites providing you with their expert recommendations for a small fee or even free. Think! This is their job and they are paid to bring in people to subscribe for their services. They will only show you the impressive winning trades just to get you to sign up. Some may claimed to have “hot tips” or “insiders’ information” and that they have a way to detect it before it move big time.

Subscribe to their services will probability get you some winners and some losers and you will be happy if your portfolio remain positive at the end of the month.

These experts probably know as little as you do about the markets and if they have known more, they would be making a lot more money trading on their own rather than to give recommendations services. It is all base on randomness and I recommend you to read “Fooled by Randomness” by Nassim Nicholas Taleb. It is about the hidden role of chance in life and in the markets. A must read book for those who are determined to be a successful trader.

Signing up for these services are going to make you lazy because you do not have to do your own research and finding them yourself. They will provide you with the recommendations and all you have to do is to follow their instructions. That it, so simple but it is going to hinder your growth from progressing as a trader.

Trading options can be more complex and thus requires more attentions as compare to trading stocks. If you can understand and master the knowledge of options, you would have acquired the unfair advantage as to how you can create profits on a consistent basis.

“I have probably purchased fifty ‘hot tips’ in my career, maybe even more. When I put them all together, I know I am a net loser” - Charles M. Schwab

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