Day Trading for Beginners Tyler Stokes

Welcome back to the "Day Trading for Beginners" podcast! Today's episode, number 21, introduces the basics of option spreads, a crucial topic for those new to trading options. As we approach the end of our comprehensive discussion on options, we're setting the stage for more advanced topics like technical analysis in upcoming episodes.


Download the 6 Month Blueprint: https://stokestrades.com/blueprint

Watch the video on YouTube: https://youtu.be/RBbbGrZiv8g

Access the full article: https://stokestrades.com/option-spreads


In This Episode:
Introduction to Option Spreads: We break down what option spreads are and how they work. This episode is designed to help beginners understand the structure and utility of spreads in trading options, without diving deep into complex strategies.Types of Spreads Explained: We cover the three main types of spreads—vertical, horizontal (calendar), and diagonal—using easy-to-understand examples. Each type is explained in detail to ensure clarity on how they differ based on strike prices and expiration dates.Debit and Credit Spreads: Learn the difference between debit and credit spreads and how they impact your trading account. This part of the discussion aims to clarify common confusions related to these terms, especially for those with a background in finance or accounting.Practical Examples: We will walk through hypothetical scenarios to illustrate how vertical spreads work compared to buying options outright or purchasing stocks directly. These examples highlight the risk management and cost efficiency of using spreads.

Resources:
Access the "6 Month Blueprint" I've been following, detailing my journey towards becoming a full-time day trader: StokesTrades.com/blueprintJoin our growing community on Skool for free, a platform for learning and sharing about options and day trading. No courses for sale, just a supportive environment to grow as a trader. Hit the Community tab on the website. 

Next Steps:

Stay tuned for our next episode where we'll review all we've discussed about options before moving on to technical analysis. Also, look out for visual content on the YouTube channel that complements this discussion with practical demonstrations.


Website and Other Social Accounts:

https://stokestrades.com/

https://www.youtube.com/@StokesTrades

Welcome to episode 20 of the "Day Trading for Beginners Podcast." Following our journey through options trading, we've explored buying and selling options and how their prices are determined. Now, it's time to understand the Greeks—key indicators that help predict how option prices might change.


Download the Blueprint:

Ensure you've downloaded the 6 Month Blueprint for an in-depth guide on our trading journey. It's available at StokesTrades.com/blueprint


This Episode Covers:
Introduction to Option Greeks: We break down the concept of Greeks in an easy-to-understand manner, avoiding complex strategies or deep dives into individual Greeks. This episode continues our learning curve on options, setting the stage for future discussions on practical applications within your brokerage account.The Greeks Simplified: Using analogies, such as comparing the Greeks to flight instruments, we illustrate how they guide traders in navigating the options market. The Greeks—Delta, Gamma, Theta, Vega, and Rho—serve as tools for assessing risk and predicting price movements, similar to how a pilot uses altitude, speed, and fuel gauges.Delta and Gamma: Learn how Delta acts like a speedometer, showing how fast an option's price might change with the underlying stock, while Gamma indicates the acceleration of Delta itself.Theta, Vega, and Rho: Understand how Theta measures time decay, Vega shows sensitivity to market volatility, and Rho relates to interest rate changes.
Watch the video on YouTube:

https://youtu.be/NmzESzIGvlA


Read the full article here:

https://stokestrades.com/option-greeks/


Next Steps:
As we wrap up our series on options, stay tuned for a practical guide on locating and trading options within your brokerage account. This upcoming content, including YouTube videos, will demystify the process of using Greeks for real-world trading decisions.Technical Analysis Ahead: After concluding our discussion on options, we'll venture into technical analysis, marking the next phase of our day trading education.

Resources and Community:
Chat GPT and Learning Tools: Discover how leveraging AI like Chat GPT, along with finance blogs and YouTube channels, can enhance your understanding of complex topics such as option Greeks.Join Our Community: For more resources and a supportive learning environment, visit our website and join the free community on Skool. Here, you can access all podcasts, videos, and a dedicated section for the resources I've used to learn about options.

Website and Other Social Accounts:

https://stokestrades.com/

https://www.youtube.com/@StokesTrades

Welcome back to the "Day Trading for Beginners Podcast," where we document the journey towards becoming a full-time day trader. Today we're pausing for a moment to reflect on the first 3 months of our journey. As we hit this milestone, it's a perfect time to assess our progress against the 6 Month Blueprint we've set out with and discuss the mental resilience required to pursue day trading or any ambitious goal.


Download the 6 Month Blueprint: https://stokestrades.com/blueprint

This blueprint is our roadmap for the initial months of our day trading journey, covering everything from the basics of the stock market to setting up a brokerage account and intros to options and technical analysis.


The Importance of Mindset in Day Trading

In one of our previous episodes focused on mindset, we discussed the ups and downs you'll likely face on this journey. March has been a challenging month for me personally, juggling family commitments and unexpected hurdles while staying committed to learning day trading. It's a stark reminder that success is not a straight line but a path filled with setbacks and victories. Remember, persistence and adaptability are key to overcoming the valleys of despair.

Where We Stand

Over the past three months, we've covered a wide range of topics:
Basics of stocks, bonds, ETFs, futures, Forex and optionsChoosing a brokerage account and setting up for paper tradingUnderstanding different types of stock market ordersAn introduction into options tradingLooking ahead, we plan to explore the intricacies of technical analysis and the importance of maintaining a trading journal. While we have laid a solid foundation, there's still much to learn, especially about options and developing effective trading strategies.

Staying Consistent

The journey to becoming a proficient day trader is long and requires consistent effort. Regardless of the challenges life throws at us, it's crucial to keep moving forward, learning something new every week. Join me in committing to this process, knowing that each small step takes us closer to our ultimate goal.

Join Our Community

For additional support and resources, consider joining our community on Skool. It's a fantastic space to connect with fellow beginners, find accountability partners, and share your learning progress. Visit StokesTrades.com and click on the community section to join for free.

Looking Forward

Next week, we'll tackle the topic of options and the Greeks, wrapping up our discussion on options by the end of April. As we approach the halfway mark of our 6 month journey, we're gearing up to learn about technical analysis and setting up a trading journal. Stay tuned, and let's keep pushing forward together.

Thank you for tuning in to this week's episode. Don't forget to subscribe to the podcast and check out our YouTube channel for more visual content on day trading. Here's to a productive April and beyond!

Image referenced:

https://stokestrades.com/day-trading-mindset-of-a-beginner/


Website and Other Social Accounts:

https://stokestrades.com/

https://www.youtube.com/@StokesTrades

Welcome to Episode 18 of the "Day Trading for Beginners Podcast". In this episode, we're talking about how options are priced. It's our third chat about options, building on previous ones about what options are and buying and selling them.

Download: If you're walking the same path to become a full-day trader, don't miss my 6-month plan. You can find it at StokesTrades.com/blueprint

What We Cover Today:
Option Prices: Why do you pay what you do for options, whether buying puts or calls?In the Money, At the Money, Out of the Money: Simple explanations to help you understand these key concepts.Intrinsic and Extrinsic Values: Breaking down the two main parts that make up an option's price and why it's important.Time and Volatility's Role: How the time left until an option's expiration and the implied volatility affect its extrinsic value.Implied Volatility: How the market's guess about a stock's future movement can change the price of options.Learning Tools: Sharing useful resources and platforms, including a free community platform and an options course module filled with my go-to resources.
Wrapping It Up:

This episode aims to make understanding option pricing straightforward, focusing on intrinsic and extrinsic values—key knowledge for dealing with options.


Stay in Touch:

For more resources, including videos and a community of traders, head over to StokesTrades.com. Let's learn and grow together in trading.

Stay tuned for more simple explanations of trading concepts. Let's make trading easier to understand, one episode at a time.


Website and Other Social Accounts:

https://stokestrades.com/

https://www.youtube.com/@StokesTrades

Welcome to episode 17 of the "Day Trading for Beginners Podcast." Today, we're continuing our exploration into the world of options trading. This episode can be considered part two of our introduction to options, focusing specifically on selling options, including both call and put options.


Download my 6-Month Blueprint for becoming a full-time day trader:

https://stokestrades.com/blueprint


Watch the video version here:

https://stokestrades.com/selling-options/


In this episode, we talk about:
Selling Options: Building on our initial discussion on options, we now examine selling call and put options. We clarify the concepts of being "covered" versus "naked" in option selling and the implications of each.Understanding Assignment: A crucial aspect of selling options, we explain what it means to be "assigned" and the responsibilities it entails for the seller.Risks and Strategies:Covered Calls: How owning the underlying stock can provide a safety net when selling call options.Naked Calls: The higher risk associated with selling call options without owning the underlying stock.Cash-Secured Puts: The benefits and precautions of selling put options when you're prepared to buy the stock at the strike price.Closing Out Positions: An essential strategy for both buyers and sellers to manage risk and secure profits. We discuss how to "buy to close" your positions and the strategic advantages of doing so.
Key Takeaways:
Selling options can be a strategic way to generate income, but it comes with obligations that traders must understand.The difference between "covered" and "naked" positions significantly impacts the risk profile of selling options.Understanding assignment and how to manage your positions through closing strategies is crucial for minimizing risk and maximizing returns.
Resources Mentioned:
Educational websites and YouTube channels for learning about options trading is ideal for this phase of the journey. I emphasize the value of free resources for beginners to grasp the fundamentals without the need for expensive courses.https://www.optionseducation.org/


Closing Thoughts:

As we peel back the layers of options trading, it's clear that a solid grasp of the basics is foundational for success. Selling options introduces new dynamics and risks, but with the right knowledge and strategies, it can be a valuable part of your trading arsenal.


Subscribe:

Ensure you don't miss out on further insights into options trading and other day trading strategies by subscribing to the podcast. For a visual learning experience, check out the video version of this episode on the YouTube channel, where I'll break down these concepts with whiteboard examples.

Stay tuned for our next episode, where we'll dive into the pricing of options, including intrinsic and extrinsic values, to further our understanding of options trading.


Website and Other Social Accounts:

https://stokestrades.com/

https://www.youtube.com/@StokesTrades

Welcome to episode 16 of the "Day Trading for Beginners Podcast." In today's episode, we review the definition of day trading and the critical role of trading psychology.

Download my 6-Month Blueprint for becoming a full-time day trader:

https://stokestrades.com/blueprint


In this episode, we cover:

Understanding Day Trading: An exploration of what day trading truly entails, beyond the simplistic notion of buying and selling financial instruments within a single day. We discuss the speculative nature of day trading, focusing on profiting from short-term price fluctuations through technical analysis, news events, and market sentiment.

Personality Traits for Successful Day Trading: Highlighting key personality traits such as discipline, independence, and decisiveness that align well with the demands of day trading. Understanding that the right mindset and characteristics can significantly impact your trading success.

The Importance of Trading Psychology: Why mindset and psychological preparedness are paramount in day trading. We look into the insights offered by one of the leading books on trading psychology, "Trading in the Zone" by Mark Douglas, focusing on the first chapter's discussion on the psychological aspects that set successful traders apart.


Key Takeaways:

- Day trading is not merely about technical skills. Emotional intelligence, discipline, and a keen understanding of one's psychological responses play a crucial role.

- Successful day traders possess a unique set of attitudes, allowing them to remain disciplined, focused, and confident amidst the market's volatility.

- Embracing and managing risk, rather than fearing it, is essential for achieving consistency and success in trading.


Resources Mentioned:

Trading in the Zone by Mark Douglas: A must-read for understanding the psychological foundations of successful trading. Available on Amazon as an audiobook and in other formats.


Closing Thoughts:

As we continue the journey into day trading, it's clear that mastering the market's technical aspects is just part of the equation. Cultivating the right mindset and overcoming psychological barriers are equally, if not more, important. Stay tuned for upcoming episodes where we'll cover options trading and further explore the mental fortitude required for day trading success.

Read the full article and watch the video here:

https://stokestrades.com/what-is-day-trading/


Subscribe:

Don't miss out on future insights and strategies to aid your day trading journey. Subscribe to the podcast for more educational content, and check out the resources and community at StokesTrades.com for a supportive learning experience.


Website and Other Social Accounts:

https://stokestrades.com/

https://www.youtube.com/@StokesTrades