For those new to trading on in the options market, understanding the role of a stock options advisory service will be beneficial in recognizing the assistance these services can provide. While many new traders will use an advisory service, experienced traders also capitalize on the trade recommendations provided. They can also utilize the information about the targets and the stop prices, allowing even experienced traders to maximize their earning potential on a trade.
The key is to avoid confusing a stock options advisory service with other types of services on the market. An advisory service is designed to provide information on trades meeting specific predicted profit outcomes and to provide education on the market for their members.
What an Advisory Service is Not
It is also important to understand what a stock options advisory service does not offer. They are not a financial planner, so they do not manage long-term wealth building strategies. Most of the stock and options trades will be days to weeks in length, which is very different from long-term investments in the markets.
An advisory service is also not designed to act as a broker. They do not place or manage trades for the trader; rather they provide trade alerts and information necessary for the trader to act on the information.
The Best Use of an Advisory Service
The best advisory services have a proven track record of meeting their profit objectives over the recommended trades. To maximize the earning and wealth building potential, the trader will need to follow the market and use the targets and stops provided by the advisory service. Making a decision outside of the recommendations increases the risk in the option, decreasing potential earnings for the trader over the long term.
Ideally, any beginning or experienced trader using an options advisory service should also be learning about the market and how to evaluate and compare trades. This development of knowledge will be critical to making profitable options trades independently in the future.
At Trade Genie, we are a stock options advisory service with a decade of experience and thousands of successful traders. To find how to achieve your financial freedom, see us at mytradegenie.com.