The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone, Kirk here again and welcome back to the daily call. On today's show, I want to answer the question, “How many shares or option contracts should you trade first?” I think this is a common question. It’s probably a very simple beginner question that we get often which is like basically, “How big of a position size should I make on my first couple of trades?” I think in either case, whether you're starting out or whether you’ve been doing it for awhile, I think all of your trades should generally be small. When you’re first starting out, when you’re really getting your feet wet, trying to understand options trading or stock trading, I think your first couple of trades should be one share or one option contract, literally one contract. Now yes, that means that in some cases, it might not be as advantageous for commissions because maybe your broker deliberately has a commission structure set up, so that you trade more contracts which is a cheaper commission, but don't get sucked into that initially,