Tastytrade: Is it worth Following/Trading Dough Trades?
The Good, the Bad, and the Ugly of Tastyworks’ Tastytrade. Constructive viewpoints set goals to understand all aspects of what is available. Read collected information below:
Tastytrade: The Good:
Tastytrade is a network of real traders, with real ideas, and real-time, actual trades. Therefore, Tastytrade provides actionable trades that, you, as a trader on their brokerage platform, can choose to execute.
The insight into this is less of “blind monkey follow,” but rather to learn from their trades, and improve your own trading strategy. It is easy for trading groups to show their success. It is difficult for trading groups to explain their losses. The losing trades are often more invaluable.
The commission fee structure of Tastyworks helps to educate the public to avoid fee-abusing institutional brokerage firms. Balanced fee structures win out over large institution marketed broker fees.
Free Introduction to Trading & Trader Advice
Tastytrade has educational guide after informational guide on their website. In addition, newer and experienced traders can watch live option trading broadcasts, walk-through trading tips, and an archive of videos already recorded.
Free learning information is invaluable and all you need is to have signed up with their no-fee brokerage service.
Tastytrade: The Bad
The cheerleading is a bit much. The information on Tastytrade is great. It’s free. And it’s useful. However, the traders on the Tastyworks team are persuading their audience how great their strategy is in a manner almost unbelievable. Now, it is true that it is a good strategy. Though no strategy is perfect. Therefore, it can be over the top listening to their pitch.
Tastytrade: The Ugly
Naked option trades. Not naked option traders, but rather naked trades. The Tastyworks traders tend to do naked trades a lot. For the beginner option trader, naked trades are both dangerous and reckless.
What is a naked option? Simply put, a naked option trade is when a trader sells a call or put without a purchased call or put further from the current price or strike.
Evaluated correctly by an experienced trader, naked option trades can yield much better profits without the “insurance” purchase of a sold vertical trade. However, it is irresponsible to do naked option trading without any back up plan using verticals.
After all, selling an option, especially to the long side, literally has unlimited risk if your trade gets out of hand the wrong direction on you. Those 99% accurate trades do fail. And when they fail, your broker account balance suffers a hit.
Tastytrade: The Redeeming
A commission fee structure you can’t beat. Great information tools. No platform fee. Free trade advice (good or bad, it’s advice you can learn from). And though international accounts are coming soon to Tastytrade, international options traders can learn from the free information readily already available.
In the end, the Redeeming beats the bad and ugly. What normally costs thousands of dollars in educational classes, is free with signing up an account. You can skip right to signing up here:
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