Day Trading Books – Know the Options For Profit and Wealth

We all know that the biggest cries one hear about trading stock options is the risk involved into it. In real life, there is less risk involved with "options" than there is with trading the actual stock

than one think of. It is an easy way for anyone to create massive wealth in a short span of time.

One of the 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.

In place of stocks, trading options (ETO's) can be very profitable no matter which direction the market takes at certain time. 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 by day trading penny stocks.

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 or by referring day trading books.

.

Day Trading Books Know the Options For Profit and Wealth

By: anamika

POST COMMENT

Reasons Why A Multi Level Marketing Association Is Vital To Your Success In MLM 10 Competitive Advantage Marketing Tips SEO Marketing Keywords are the most important Is Article Marketing a Must? Is Article Marketing An Effective Technique? Hunting Land For Sale In Alabama-how To Profit From Buying And Selling Land 10 Competitive Advantage Marketing Tips Real Time Forex Commentary - Predictions + Commentary For the 2010 Financial Markets Real Time Forex Data - This EA Has Made Huge Real Time Profits! Cosmetics Products Manufacturers Potential Market For Global Consumer How To Be A Forex Market Maker - Why Forex Market Maker is a Lifeline Let's Talk About Why You Need Article Marketing In Your SEO Strategy El Marketing Personal, Una Herramienta Para Alcanzar Tus Objetivos Profesionales