subject: Buying Stock Options Online - Survival in the Stock Options Market [print this page] Buying Stock Options Online Buying Stock Options Online
Is the answer for survival in the 21st century in the stock market?
It's been said that the mastering of the art of successful stock option trading is the best way to make a living. By following a few simple rules, you can work from home, make money whether the markets are rising or falling, with no employees, no bosses and an awareness of a few simple regulations. Best of all, the rewards of good work are all yours, not some boss' or workmate's who tries to steal your efforts. Income potential can exceed that of a doctor, engineer or politician, with no college degree required.
Controlling human emotions is a first step to success. Greed and fear are the biggest enemies of any trader and can pick your pocket faster than the government. The minute you make a trade, these enemies kick in and start to gnaw at your mind.
Thinking can be dangerous. You must avoid the temptation to think a stock is going up or down, as it is commonly wrong. It's been said that if you monitor some of the free "chat" lines, and do the opposite of the group, you are likely to make considerable money, as the group mentality is often wrong. It seems that everyone has a hot tip. The grocery store clerk knows something, the milkman (if they even have milkmen these days) heard something. Buying Stock Options Online
They all seem to know and once you invest in these hot stocks, you watch your money evaporate. How many times have you received an email from some unknown source telling you some "insider information" and after investing, your investment is worthless? These could be "pump and dump" plays, where the sender or their client, spread great news about a company to promote interest and begin a buying frenzy, causing the price to rise temporarily, but just long enough for them to sell their holdings.
There are certain chart patterns and other technical indicators that can greatly improve your chances of being profitable more often than losing. Stop listening to others and become the expert yourself.
You have probably heard that most option trades are losing trades and this would be correct. You must remember, however, that some options are purchased as insurance against stock holdings and are there only to protect the values. You don't get angry at your house insurance company if your house doesn't burn down and leaving you unable to collect the value of the policy. It is intended to be lost and the same is true with options.
The 80/20 rule applies in the market, where 20% of traders make 80% of the money. Knowledge is power, but only if used. When your goal is to become part of the 20% who make most of the money, you are on the road to success. Certain strategies, however, can put the odds in your favor. It isn't easy, but anything worthwhile is worth the investment to become knowledgeable. There are huge rewards waiting for those committed to taking it off the table. Buying Stock Options Online
Buying Stock Options Online - Survival in the Stock Options Market
