Trading Software and Books Reviews

Options: A Complete Guide for Australian Investors

Options are a great way to make money – and to get your fingers burnt. Simple books on options often give the impression that they are a simple tool and easy to understand. They aren’t.

In recent years, Guy Bower has done his best to make understanding and using these tools as straightforward as possible. Many of you are probably readers of his articles, but with magazines you can get only a taste of the subject. This book takes you further, as it fills in the gaps with detail. It covers the use of options in both equity and futures markets and explains strategies that suit certain markets and market conditions.

The style of the book is ‘easy reading’, with clearly laid out information backed up by questions. The challenge is that people will sit back and just read the book, apply the ideas and lose money, because they haven’t taken the time to integrate the information into their overall approach. Think of this book as a textbook. At around three hundred pages it is not a quick light read. It requires – and your capital deserves it – time to go carefully through the information. Then you need to test the ideas and consider the results. Can you make them work for you and in what markets? If you can demonstrate that the ideas work, then you may wish to consider backing them up with real money.

Options aren’t for everyone. Guy Bower’s book will go a long way to helping you work out whether or not they are for you.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

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