http://www.smartfunda.com/investment-option-trading.html
How do you make the most money by trading options?
I want to know what the best investment type is that you can make and use options for, and how to make the most money out of it by using options trading?
Most people loose money in trading options. But they do it anyway because they see it as a kind of insurance for their other stock market investments.
The commissions you have to pay for trading stock options are higher than for simple stock trading. And options exponentially decline in price over time. Which makes buying and holding options more risky than doing the same with stocks.
Writing and selling options is profitable most of the time. But the risk of writing naked options is unlimited, just like the risk of short-selling stocks is unlimited. Which means that you can make money for some time. And then loose several times more money than you’ve made earlier.
It’s possible to make money in options trading. And some people got rich by doing that. But most people who try to do something like that end up more poor instead of more rich.
Before you think about the potential profits. I suggest that you try your best to understand the risks involved. Because if you don’t find a good way to deal with every possible risk, before you start trading options. Then very likely your options trading will be very unprofitable.
Iron Condor AUGUST Review Performance :Options Trading PANDA
