When it comes to trading options, most people make it out to be more than what it should be. And I tell you that because all the experts are always cautioning you about the high risks levels involved in trading options, and that you could so easily lose all your money. But the funny thing is that you are an investor everyday of your life, and you take high risks every single hour of your day where if you lose you could end up losing everything. And yet you find ways to navigate, you are able to live your life for 60 to 100 years and still are able to retire and come out on top. For example, every time you step outside of your house and get in your car to drive, you take a high risk of losing your life, a risk of a drunk driver running a light or a stop sign and crippling you for life by crashing into you, and you lose big. Or when there is tornado or hurricane coming and you decide not to evacuate, then you are taking a high risk and may end up losing your house, losing your mind and the ability to move around after you are crippled. Also, every day that you arrive at work you are taking a high risk of losing your job instantly if you have a nervous breakdown and start to cuss at your boss or even start to make deadly threats, but you still go in every day. So with all that said, investing or trading options is even less risky than any of these situations I just mentioned above, because all you can lose is the little bit you invested, or speculated with. Additionally, you do options trading all the time without realizing it, every time you are trying to buy something you can not afford right away.
For example your friend is selling a car for $1500 and it is in great condition, but you simply don't have that money right now to take advantage of this great bargain. But you tell your friend that you are going to give him $100 for the right to buy that car within 30 days. In other words, for the next 30 days he can not sell that car to anyone else; and if after those 30 days you can not come up with the $1500, then you only lose your $100 and walk away, and now your friend can do what he wants with that great car.
But also here is the great thing, if your friend's car happen to be featured in a new movie as a cool car and now the demand for that car just shoots up and this type of car is now selling for $3500. So now you are sitting pretty because you have a contract on that car to buy it at $1500 in 30 days, and your friend is obligated to sell you that car at that price within that time frame, and you only. And now you can do 1 of 2 things, you can go find that $1500 and buy that car right now, or you can go find another friend and tell him about this great deal that is worth $3500 that you are getting for only $1500, and you can also tell that friend that you have a contract on that car and you are willing to sell him that contract or that right for say, $500. So now he can pay you $500 and you will have made $400 in profit, and he can go and buy that car for the same agreed upon $1500, and still have room to make money if he wants to flip that car.
Or on the other hand, if within those 30 days, you are watching the news and you are advised that this great car your friend has and which you have a contract on, has been recalled by the manufacturer because of a bad fuel line that may catch on fire and an airbag that deploys without warning. And now everyone is scared of that car, and you happen to look online on EBay and that same car is going for $200 so those buyers can get those repairs done. And since you only had placed a deposit of $100 with the right to buy, not the obligation, within 30 days. You can now simply call your friend and tell him that you are no longer interested in that car, or you can just let those 30 days expire and your friend just keeps the $100. And That Is The Basic Of Trading Options My Friend, and of course there are complications when you have to do research to find out what is going on with that stock or company and there are other little ways you can make money using more creative options. But That Is The Jist Of It, so don't let the so-called experts scare you to death. Your Business Coach, James Dazouloute
And Now To Help You Further, Here Are 7 Easy Steps On How To Begin Trading Options:
Credit source link: http://www.wikihow.com/Get-Started-Trading-Options
- Practice paper trading before you risk your money.
My Money, My Happiness... How To Have Both. Book By James Dazouloute
SUBSCRIBE RIGHT NOW TO KEEP ON GETTING HELP ON HOW TO MAKE MONEY WITH ALL YOUR IDEAS...
OTHER RELATED ARTICLES TO HELP YOU:
What Is Binary Options And How To Make Money Trading.
Binary Options... All The Terms You Need To Know.
4 Types Of Strategy To Use Investing In Binary Options.
Top 8 Reasons To Invest In Binary Options To Get Rich
Learn Penny Stocks The Easy Way. By James Dazouloute
Why Buy Silver Now, And Leave Gold Alone To Make A Lot Of Money. By James Dazouloute
Super Rich, How To Join Us Today. Part 1 Of 10
AND SHARE THIS WITH ALL YOUR FRIENDS... DON'T BE SELFISH
DO SUPPORT US... FOR THE GREAT KNOWLEDGE WE HAVE SHARED WITH YOU... WE SUPPORT CHARITIES.
VISIT MY ""MUST READ BOOKS PAGE"" So Your Life Could Be Enriched In The 12 Main Areas Of Life:
ALSO... LEAVE A COMMENT -BELOW- AND SHARE YOUR EXPERIENCE ABOUT THE SUBJECT OF THIS ARTICLE
Tags: How to begin trading options, 7 easy steps to trade options, What is binary options trading, What is one touch trading, How to make a killing with one touch trading