Yagirlcheatinonus
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Don't trade stock options breh...
- Thread starter LionofJudah
- Start date
Lakers Offseason
Superstar
It's all good when you're making money and your investment goes from $500 to $3000 within a week. But brehs, just know that your money can also easily go from $3000 to $80.
I'm talking from experience trading options. Overall I've made money, but when you see $2000 go down to $100 within a week, it crushes your soul
This is not to discourage you because this is a great way to quickly grow your money, but it can also deplete your account if you're not careful.
I'm talking from experience trading options. Overall I've made money, but when you see $2000 go down to $100 within a week, it crushes your soul
This is not to discourage you because this is a great way to quickly grow your money, but it can also deplete your account if you're not careful.
JasonSJackson
Jah Sun Ma'at Ra
if u bought facebook stock when it hit 16.00 bucks (or lower if it went) you are winning right now
I took a $3k loss on what couldve been a $53,000 gain if I wouldve held on. Stock is trading at 4x the price I paid. Invest in stocks brehs 
Ive been trading since '09 back when there were surefire stocks like Apple (sub $150), Ford, Citibank (post bailout). Older I get, the less Ive been trading. Its really a rigged system where those in the access to the inside info being passed around and those with the means to get involved w/ high frequency/speed trading win while the fools with get rich quick dreams lose. Never invest in nothing that you cant control the outcome or have the means for a competitive advantage, otherwise youd be better going to the Vegas sportsbooks.
Ive been trading since '09 back when there were surefire stocks like Apple (sub $150), Ford, Citibank (post bailout). Older I get, the less Ive been trading. Its really a rigged system where those in the access to the inside info being passed around and those with the means to get involved w/ high frequency/speed trading win while the fools with get rich quick dreams lose. Never invest in nothing that you cant control the outcome or have the means for a competitive advantage, otherwise youd be better going to the Vegas sportsbooks.
Mr. Somebody
Friend Of A Friend
Thank you, friend. Lets master the stock market. Just kidding, this is too much like gambling.
Mr. Somebody
Friend Of A Friend
Why not just cash out when you make a gain and start over again with small amounts.It's all good when you're making money and your investment goes from $500 to $3000 within a week. But brehs, just know that your money can also easily go from $3000 to $80.
I'm talking from experience trading options. Overall I've made money, but when you see $2000 go down to $100 within a week, it crushes your soul
This is not to discourage you because this is a great way to quickly grow your money, but it can also deplete your account if you're not careful.
Mountain
All Star
Just wanted to do a quick thread to put y'all up on making money in the stock market, with very little capital. I'm no stock guru or anything like that, but I try to make my living doing this. Here are a few trades that I made earlier this year to show you the power of trading stock options. You can seriously make a great deal in a short amount of time, if you know what you're doing.
Basic Option Info
Call Option-An option to buy assets at an agreed price on or before a particular date.These are normally bought when you think a stock price is going to increase.
Put Option-An option to sell assets at an agreed price on or before a particular date. These are normally bought when you think a stock price is going to decline.
Strike Price-The price at which a put or call option can be exercised.
1 option contract is equivalent to 100 shares of the underlying security (stock). So if I buy 5 call options of Yahoo at a strike price of $25.00 for .20 each, I am spending $100 (excluding commissions). [5 contracts X 100 shares=500 X .20 each=$100 ]
All of these transactions took place over two weekdays. Initially, I bought 43 put contracts of stock BRK.B (Berkshire Hathaway) for .20 each on a Thursday for a total of $920.75 (including commissions). The price of BRK.B (the stock) decreased so the Put option price that I bought increased. I sold all 4300 contracts at .35, so I nearly doubled my money that same day [43 contracts X 100 shares=4300 X .15=$645]. This is a great return, but I really want you to look at later on that day. I took most of my funds and bought 13 Call contracts of LNKD (LinkedIn) @ $1.05 each. LinkedIn was going to announce quarterly earnings that night and there was a rumor that they would be great, so I took a chance and held overnight. The earnings were great and the stock exploded in Afterhours trading. Options don't trade in afterhours, so I had to wait till the next day to sell them. I sold all 13 contracts not long after opening bell for $7.50 each. Here is the math on that one (13 contracts X 100 shares=1300 X 6.45=$8385.00 profit)! This is holding for less than 24 hours...After I sold, the stock continued to climb. I thought it was going to pullback some, so I bought a few put contracts but I lost some of my profit on that as you can see. But this is the POWER OF TRADING OPTIONS. If I had held my original call options on LNKD until later in the day, I would have made over $20,000 IN ONE DAY FROM AN INITIAL INVESTMENT OF NEARLY $1,400.00. Of course, this isn't necessarily an everday occurrence, but it all depends on what you're trading and how much you're risking. At the link below, there is a guy who has been making hundred of thousands trading options and he documents it for everybody.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=90738925
This is something to look into if you've ever wanted a career in the stock market, but never quite had to money or time to look into it. It's time to stop living paycheck to paycheck. If you have any questions, I'll try to answer them.
im no options trader but i dabble in abit of everything so i know the basics. here are some questions for you breh:
1) how do you account for the risk of not being "in the money" after your option has expired, how do you reduce that risk?
2) have you tried straddling (or hedging) option contracts and did it work for you?
3) how do you personally know what to buy and when to buy it? do you use any type of econometric calculations to forecast prices such as delta calculations? do you use chart formations? or do you use technical indicators and if so which ones do you use?
4) which type contract do you trade american or european? and why?
5) do you leverage? in fact can options even be leveraged? if so how do you operate within your margin limit (or reduce margin call risks) and what leverage ratio do you use?.
When that recession hit, I lost 15,000, my family including me lost 100,000.
fukk with the stock market brehs
fukk with the stock market brehs
my advise also is not to play around during earnings season. because it is strict gambling at that point. to anybody whos interested I have a list of about 5-10 rules you must abide by when playing with options. They will help you minimize losses but any breach and it can fukk you up bad. Speaking from experience.
Much better with equities than options
Much better with equities than options