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Online Trading Stock and Option Securities | Be Ready for Action

Options Trading — Thu, 24 Sep 2009 10:31:58 +0000

People who go online trading stock and option securities aren’t always familiar with the risks involved with day trading. While this article isn’t about to launch into a long harangue about the woes of online trading stock and option traders face I’d rather focus on the importance of being able to identify some of the opportunities in the market and being in position to exploit them. Riddle Me This: Why Are You Trading Stocks and Options Online? Online trading stock and option securities is a risky business. At any time you put money in the market that money is certainly going to be at risk… so why on Earth would you take on any more risk than you absolutely had to? Take for example the situation of purchasing a block of shares of common stock. Why buy today? What is your rationale for picking up 100 shares of IBM today rather than tomorrow or Friday or never? Your number one priority in online trading stock and option securities is to make money. Will buying those shares of IBM today give you a better chance of earning money than waiting until tomorrow (or choosing some other opportunity instead)? If you don’t know the answers [...]

High Rate of Return Investing | Quick Hitters to Improve Your Average

Options Trading — Wed, 16 Sep 2009 10:31:32 +0000

Earning a high rate of return earlier this year meant being fortunate enough to have been out of the market when the wheels came off, then jumping in at the bottom in March with maxed out leverage and then hanging on through the wild swings of the second quarter until the options or margin positions paid off. Other investors not so fortunate to be out of the market before the downturn still did have ways of getting quick high yield returns on their investments in the binary options market. Getting a high rate of return in today’s day trading environment means getting in and out of the market as quickly as possible to avoid exposure to holding period risk. Many day traders take use leverage to maximize returns for the brief risks they do choose to take in the market. Look For Small Gains and Ramp Them Up to Higher Rates Whenever I want to get a high rate of return (read:always) with a minimum amount of risk I inevitably look for a small, but 99% sure thing gain in the market, then I borrow as much money as I possibly can to increase the amount of purchasing power I [...]

Highest Return Investments Always Require Leverage

Options Trading — Tue, 08 Sep 2009 10:31:15 +0000

You will come to find the highest yield investments inevitably come in the form of small gains either massively amplified by leverage, or repeated hyper-rapidly by automatic trading programs. If you’re fortunate enough to own one of those programs, great. If not, you need to learn about leverage. I am always looking for the highest return investments – whether I am looking to invest my money, my time, or anything else. I always want to know where to get the most bang for my buck – and when it comes to investments… I usually find it. The More Purchasing Power You Wield, the Bigger Your Gains The highest return investments in the financial world always involve leverage. Whether an investor chooses to go with options, stocks, bonds, treasuries, or forex – the biggest winner in any trade will always have the biggest lever. The reason this is true is because investing is a percentage game – the larger your purchasing power, the more income you will produce from the same percentage gain. Multiply your purchasing power, and you multiply the gains (and losses). Consider: Person A with $10000 invests in company A, which gains 10%, producing $1000 profit. Person B [...]

High Leverage Investments | The Way the Rest of Us Can Make a Class Jump

Options Trading — Fri, 04 Sep 2009 10:31:31 +0000

People ask me why I use high leverage investments. It’s simple. The only way an average Joe like me is going to make a jump from where I am (ok but not great) to super is by using as high leverage as I can get my hands on and use wisely. If I can take a nice 10% return and make it 100% or 200% or more without substantially more risk, then logic tells me I need to do that. Lord knows I’ll never have the mega-wealth of someone like a hotel heiress but I can acheive more with what I have if I use high leverage wisely. Why Use Leverage? Using high leverage at the right time can make returns from marginally high ROI investments gigantic. The development and general availability of a number of different high leverage investment vehicles has created an entire mini-economy run and financed by day traders. While day trading honestly saw its heyday back just before the dot-com crash, you can rest assured the practice is still alive and well long afterward. Leveraging People, Assets, or Time – Whatever It Takes Is What You Need to Do As long as there are rich people [...]