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Conventional Method
Have you ever been intrigued with the stock marketing and its ability to produce income for you?
I remember many years ago I became interested in trading stocks and started reading everything
i could get my hands on to learn how to trade stocks and make a profit.
Clearly the buy and hold method just doesn't work any more as I found out first hand!
I remeber sifting through the Investors Business Daily publications and found a method that allowed
me to find some pretty good selections to consider trading and was able to get in before the move.
Strictly looking for bullish positions I didn't not have a clear concept of trading bearish positions
and thought of it as being a negative outlook. That was just naive thinking as I found out.
So as I was counting the dollars on my positions I had I was able to take a $1300.00 grub stake and turn it
into about $12,000 over a period of months.
But something happened that was not prepared for. The overall market conditions and trend began to change
from a bullish bias to a bearish bias. Then I began to insanity phase ...
... of trading where I would hope against hope
wishing that the positions and the gains I had achieved would remain intact.
Well I was in for a rude awakening! So after loosing about half of those gains I was so proud of I decided
to close the positons before giving it all back. This experience led me into a deeper yearning wanting to learn more
about my plight. So I aquired more books and sunk myself into learning more of a technical aspect of trading
stocks.
I began learning about the moving averages, and support and resistance and even pivot points and fib levels.
Being naive I thought I had found the holy grail of trading :)
But I soon found out that there was much more to the rabbit hole I had entered and that required me to spend more
money on educating myself on the stock market.
Following the herd
I began looking into what stocks the big hedge funds were trading and listening attentively in what people like Warren Buffet
was trading in, just to get that edge. Well I quickly began to realize that the amount of money the big boys had to trade
was much different than what I had to trade and that left me in a position of not doing anything.
I searched the web looking for services that gave calls on certain stocks and did the trial try and see thing and I began
to realize that you know what these people really didn't have a handle on things as much as I thought!
So the search continued until I found a method called Options.
Options
I began reading very diligently into what the options game was and how I could profit from it.
There were all sorts of new terminology to learn as well as intrigal parts of options trading
such as the greeks (beta, gamma etc) that really was a bit challenging at first but I eventually
got it.
The main thing I realized was trading Options on stocks allowed me to minimize the amount of money
i would have to risk and I knew that risking a set amount calmed me down a bit and gave me some
piece of mind I did not share when trading regular stock positions that could wipe out an entire
account balance overnight.
When trading weekly options came on the scene I further realized that I could aquire even cheaper
options positions on a certain stock but that the position last only a short term (days)
and not months as the regular options contracts do and there was a particular method to trade
the weekly options which are sometimes referred to as weeklies.
You just have to get the direction correct and put on the trade.
Risk Management
This risk management method of trading - Options that is was something I settled in on and continued
to track positions and trade and keeping my money I risked at a minimum. That is where you
ultimately want to be, that is minimizing the amount you could lose.
Methods
There was a new options trading method that came on the scene as of late and it is called
Binary Options.
This method of trading peaked my interest because just like regular options which the contracts
could last from weeks to months to years. I found out that the binary flavoring of
trading could have a position opening up for a period of seconds.
The binary options on stocks I find is a bit different than the options on currencies that
have hit the scene and marketing ads scattered all over the internet.
What I found was that with currencies you are opened to more volatility than stocks
in the sense that currencies react to world events quite rapidly and you could find yourself
getting stopped out of positions and it leaving your head spinning wondering why?
But with binary options on Stocks you have a bit of an advantage in that you're not as subjected
to volatility like currencies so remember, risk advertion is what I am after.
So now picking a stock out of the currently 50 or so to select from narrows down the field
quite a bit and get this there are some of the most sought after stocks out on the market!
Stocks like Google, Yahoo, Amazon, facebook. Linked In, IBM, Coca Cola etc.
All I have to do now is find the trends of each of the stocks by building a watchlist
and then I can began sifting through them daily and finding which one to pick.
Well with Binary Options on Stocks there are some platforms that actually gathers that data
for you and allow you to either pick a (Call or Put) to trade and you only risk $15 dollars or more
depending on the amount you are comfortable with.
Now with conventional options your position could cost a few hundred dollars and not pan out for you
and if the contract expires then you are out of the money you use to purchase those contracts.
But with the Binary method you could turn $15 dollars into hundreds and do it several times a day.
And that is the beauty of trading the Binary Options on Stocks.
Risking a few Hundreds dollars and waiting weeks or months to see if you made any money or
risking less than $100 bucks and find out in minutes.
With a little training of what to look for in the stocks you could find yourself profiting everyday
if you so choose. I want you to have a look at some videos that explains the trading method
a bit more in detail if you like you can get the details here - http://beststockstobuy.pw
a see for yourself if this is a method that suits you.
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