As you know, when it comes to investing money in the stock market or in any other type of exchange, there will always be a reasonable measure of risk involved. He could make a huge amount of money and retire, or he could lose and lose his shirt with a bad decision.
In the long run, it is better to decide exactly how and what you would like to do and when you want to do it, as your income is at stake. While I can't tell you how to trade such a short article and I wouldn't even do it, I can share with you a few tips that I use and apply in my stock options trading. If you choose to use them, you do so at your own risk. You can adjust them as you like or discard them completely, it's up to you.
The best thing to do if you are considering going into option trading is to familiarize yourself with all the language, and exactly what is what. You need to know what the stock options are and the difference between purchase options and options. You should familiarize yourself with option premiums and their results in terms of the cost of your operations. If you do not understand these basic principles, you can never become a successful operator of options. There is plenty of information on these topics available online, just search for "online options trading" or "options trading schools" and you will see tons or results. You can also join an options forum or newsgroup so you can learn from other options operators. This is often one of the best techniques for learning something new by having a mentor who has already overcome mistakes. You can also attend courses or seminars on trading opportunities or buy ebooks on the Internet regarding this. Whatever you do, make sure you educate yourself before heading to the markets.
Once you've taken the time to feel comfortable with the trading point options, the next thing you need to do is calculate how much cash you have available to trade with the article on how much capital to invest. If you don't know this, you can't even start trading. Consider not putting money into this that you cannot afford to lose as there are no guarantees in the stock market no matter how skilled you are. If you are someone who pays your bills and has little or no cash, don't even try to invest until your financial situation improves, but again, this is our own choice. Just know that if you invest or trade in money that you cannot afford to lose and lose, it can be very difficult to catch them again.
When you first start trading options, start with "paper trading." Once you have gained some confidence and your paper operations work well, you may be able to jump into real trading. Always remember to try to minimize your risk, so when you start for the first time, try to exchange options that have lower option premiums (with very low prices) so that you do not take too much risk and do not stop losing a lot money if you commit to mistakes. Many initial options traders will invest in many small stock counters so that they have a wide distribution, giving them better protection of financial trading option tips. Without a doubt, investing everything you have into one option is not a good idea, at least not for most rookie operators.
Create a time frame and then evaluate your operations at the end of that time to see how you did it. Most new operators start at 6 months, giving them time to create a trading system of options and adjust it to work for them. Of course, if you feel that you have become a good trader and have made more money than you have lost, then of course you should continue if you wish, and maybe even continue with major operations. If you made poor choices and ended up on the negative side, you may want to return to the paper trade or spend more time learning from other people and trying again in the future or at least holding small exchanges. Until you perfect your skills.
Ultimately, you will have to find the best method that works for you. Just make sure you don't invest money you can't lose, take the time to learn everything you can about trading opportunities, and then take the time to feel comfortable as a trader.
