Personally, I think if you don't have a lot of cash on hand you shouldn't be trading stocks for $30 gains. It's a waste of time and won't get you far. If you have less than $1000 it's better to trade options. I introduced a friend to options and from $2000, he went to $11,000 in a month! Albeit he did not know which stocks to buy so I had to lead him by the hand a bit. The cost to gain of option is what's so beautiful and your leverage is maximized. For the same amount of money you can get 3-10 times the shares of buying a stock. In my TRXC options I turned $10,000 to $130,000 within a month's wait. So if you deduct 10% of that cost to $1000, profit is $13,000. It's just a beautiful system.
Posted Oct 19, 17 1:11 AMbyHikaru
Received 1 Karma
It's all about finding what strategy/Nish that works out best for you. Congrats that you have found yours!
True they have potential for a large gain, but they have the same potential forbigger losses. Many expire as worthless taking all of your investment. If you are a seller of options you have the potential to lose more money than your entire portfolio. Options can profit, but they're not all fun and games either.
Option loss is very small and limited. Loss could be $100 and gain 3-10X more.
I play both stocks and options. Another strategy for option is called straddling where you buy call and puts on the same stock.
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