==== ==== Please check out Trading Pro Edge System for great tips on Stock Trading for Profit. www.tradingproedgesystem.com ==== ====
Let's face it, one of the biggest cries you hear about trading stock options is that it is too risky. In reality though, there is less risk involved with "options" than there is with trading the actual stock. It is an easy way for anyone to create massive wealth very fast! As an example of less risk let's say that you are looking to buy 1,000 shares of XYZ stock at a share price of $10 per share. This would mean you would have to outlay $10,000, but if you were to purchase the option instead, your outlay could be as little as 80 cents per share, a fraction of the cost of buying the actual shares and you would still be controlling 1,000 shares. Unlike stocks, trading options (ETO's) can be very profitable no matter which direction the market takes. What I mean by this, is that you can make money whether the market is going up or down. By very fast, I mean in comparison to conventional methods such as your money sitting in a bank term deposit or the traditional "buy and hold" stock investment. If you can follow a simple, step by step method that is in an easy to read format, then you have the capacity for great wealth. It is not only possible, but it is being done by thousands of people every day. They are not smarter or more gifted than you, they have just taken the necessary training to skyrocket their income. Imagine your bank account growing by hundreds if not thousands of dollars per day. Options, or to be correct, Exchange Traded Options, are what is known as derivatives, that is, they are a trading instrument that is derived from a main product, in this case, it is the trading stock of a company. Stocks and derivatives are traded on a stock exchange but we wont go into the finer details of that here. There are many stock exchanges around the world and trading "options" is not confined to just one exchange, but they are not available on all stocks. This does not pose a problem though as there are hundreds of stocks which carry "options". The term "day trading" simply means buying and selling in the same day. For example, you buy 3 option contracts on Monday morning at 11.00am for a total amount of $500. You watch and see that the stock is going up rapidly and your option contract has made a nice profit. Now to realise your profit, you sell the same 3 option contracts an hour an a half later, at 12.30pm for a total of $950. You have just completed a "day trade" and made a profit of $450! The ability to trade in the markets is not something anyone is automatically born with; it is not part of your DNA. Trading successfully is a skill that can be easily learned and it is here that the biggest problem arises for most; finding a great teacher. The best teacher is someone that is also a great trader, not just "book smart". Trading for profit is
a skill very different to memorizing a text book and a great teacher knows how to deal with tough situations and take advantage of opportunities as they arise.
If you would like to learn from the best teacher all about how to day trade options for profit the easy and simple way, like I did, then I highly recommend you check this out http://www.daytradeforprofit.com. This is the best I have ever come across.
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==== ==== Please check out Trading Pro Edge System for great tips on Stock Trading for Profit. www.tradingproedgesystem.com ==== ====