Most people think that the only way to get rich is from real estate or stocks. Few people understand what options are since they believe them to be complicated and risky. The reality is that options are actually less risky then buying stocks since you can control the upside and downside using options. Options also give you the ability to control much more stock through the use of leverage. The following tips will help you start options trading and become wealthy.
1. What is an Option - An option is a contract that expires at a specific date and represents 100 shares of a stock. Most options average price is between $300-$600 a contract.
2. Open a Discount Brokerage Account - You should open a discount trading account since the fees are much less than full service accounts. You should choose a options account that charges less than $5/trade. Sogotrade($3/trade, $500 min. deposit) and Tradeking($4.95/trade, $0 min. deposit) are great discount brokerages with free research.
3. Options Software - The key to trading options is your trading software since it will give you automatic buy and sell recommendation based on real time movement. The key to making big money is using this software and feeling comfortable using it.
4. Profits - You need to reinvest your profits so you can continue to make more and more money until you become wealthy enough to retire. The sky is the limit when trading options successfully.
In conclusion, trading options allows you to live anywhere why creating great wealth and having fun doing it.
Source : ezinearticle
No comments:
Post a Comment