Trading Options is it Risky
Description:
Well I’m not going to lie to you yes it is. But there are certain things that the stock market gurus don’t want you to know. We can actually take a lot of that risk away and provide ourselves with the perfect home business. The thing is it is not that difficult to make money-trading options we just need to acquire the knowledge and the skills that the so-called gurus know!
Content:
Well I’m not going to lie to you yes it is. But there are certain things that the stock market gurus don’t want you to know. We can actually take a lot of that risk away and provide ourselves with the perfect home business. The thing is it is not that difficult to make money-trading options we just need to acquire the knowledge and the skills that the so-called gurus know!
So I hear you say what is it they know that the average person doesn’t? Well let’s start of with why the stock market guru’s have turn to trading options. Buying stocks and investing large amounts of money can actually be more of a gamble then trading options. Investing in stocks is more of a long-term investment. Large companies can go bust over night or even the price of there stock plummets so low that they are worth peanuts. Sure the price is sure to rise again but it could take a further year or two to receive the money you out laid in the first place. I say why bother!
This is where trading options comes into play. Options are a contract consisting of a thousand shares on a particular stock. We can rent these shares at a fraction of the actual share price. We now have the ability to make money on the stock market when the market is rising falling or going side ways! I can hear you say how? Well there are two types of contracts. The first is a Call Option the other is called a Put Option. Now I’m not going to get technical with you with all the stock market jargon and get you confused I’ll give to you in English.Basicly all we are doing is insuring our rented shares. It’s as simple as that!! So if the market is going to drop we will purchase a Put Option if it was to rise we would then buy a Call Option. The next part of trading options is we need to be able to predict which way the market will go in order to determine which contract to purchase. This is where we have to look at stock market charts. You will need to purchase software and subscribe. The software I use is called The Bourse.
In this software we will be given tools that we can use that will take all the guesswork and the risk out of everything. I’m not going to get into this to much in this article as I do not wish to make this article to long. But what I will tell you there is one tool I use that has never let me down once. I can tell what the market will do three days before it happens. I just wait get into that trade and get out! You see really the key is just knowing where to put you’re money at the right time. That’s all the stock market gurus are doing. I can hear you ask how much money can be made well you will have to have some money to invest but consider this for every dollar the stock goes up or down it is very close to 100% return on your money. But please you will have to acquire the skills and knowledge to trade options. The truth is once you gain the knowledge it is not that difficult I know of fourteen year olds doing this stuff and it only takes half an hour a day to analyse you’re stocks make your phone call and your done.
There is one more thing I would like to mention once you start learning about options you will find out about other things along the way like taking over own superannuation [You cant trade options with your supper] But if we know what the market will do three days before it happens is this not powerful knowledge obviously we would not buy stocks that are going to fall but lets say you knew that the price of a stock was going to rise would you put your money there. Of course you would and when those stocks run out of steam we just sell them and look for another opportunity! Superannuation companies just give you peanuts for your money. You could be paying your self for looking after your own money. Consider this if you had $50,000 you could pay your self $500.00 per week if $100,000 then $1000.00 and so on. The big picture is knowing where to put your money at the right time. Really it is not that hard once you know how!
Joel Pearce writes on trading options
Author: Joel pearce
About Author:
Joel Pearce has been a successful option trader for a number of years teaching his children and family members to become financially free. If you would like to run a successful home business and become financially free as well as being able to provide a great future for your kids and there kids to come please visit his site for more information http://tradingtheoptions.blogspot.com/
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