A friend has been studying stock option trading for about 5 years now. He lost quite a bit during the learning process but feels he has come up with a strategy that works. He says he's consistently doing a lot of make $30k loose $20k trades but the gains are consistently more than the losses ie he's making money.
But get this. He had one week where he made $100k.
I played with options years ago, but back then you couldn't get real time quotes and do the things that are available online today. There are brokers where you can do paper trading real time. They stick 100k of monopoly money in your account and you can trade away, testing strategies etc.
I'm going to see what information I can pry from my friend. I want to set up paper trading on my pc and see what I can figure out. I have a feeling its kind of like making money on the internet. The information is out there, but its a long learning curve and you really need to dig for the information.
Some people make a lot of money in the market. I think it will be fun to play with and I'll see how my friend does over time. I know he's doing the research and isn't looking at it as a get rich quick thing.
I'd love to find a good investment opportunity, but the problem is to make this work you need to throw some real cash at it at least 50-100k otherwise its pointless as the investment may yield some return but if your only putting 20k in even if you got 10% return thats only 2k so nothing to get excited about
The rule of thumb with investing is only invest what you can afford to loose and right now I can't afford to loose 100k
I've been looking at buying silver as this seems a more stable and safer return and you don't have the big fluctuations that stocks offer and theres no min or max limit, although if you invest more than 40k you get less charges and fees setting the accounts up - the company I'm looking at buying silver from is www.bullionvault.com check them out
Check this video out as he believes he are on the brink of the greatest economic collapse in history and why buying silver will protect your cash from being devalued. It makes VERY interesting watching and off the back of it I'm looking at putting 40k into it
I'm going to do some studying on options trading. I've done it and lost money, but I was doing it like the kid who comes on this forum and thinks he can put up an adult web site and will make millions.
Options you are in and out of in days or weeks. I figure if I can get to a point where I can make 6 months of paper trades and have each two week period of that be profitable I'll throw real money at it. The beauty of it is you can do paper trading today, just like real trading. It's kind of like building a hobby web site. When you can get your hobby site in the top 5 on G, you probably know enough to try to make money from a web site. At least that's the way I look at it.
I don't like the idea of long term stuff right now. Not even precious metals. One, they don't appreciate that rapidly and two who knows when things are going to blow up.
Anyway, I'm going to play with paper trading for a while. Worst case, I learn something!
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