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How to Make More Money With Stock Options

Stock options can make you huge amount of money with just a small investment.
Just keep in mind few things in mind while trading in it , this wud definately fetch you good returns :

The time premium.
As the expiration date on a stock option draws nearer the cheaper the option will become. This way you are able to buy even more calls and puts on the stock of your choice. But since you are running out of time it is very important that the stock moves swiftly. If the stock does more as you predicted, and you invested the same amount of money you normally would, you can make a fortune.

Look for a high risk.
The higher the risk, the bigger the reward. But if you have really researched a stock you can lower the risk. So before throwing lots of money into buying a stock option make sure you feel certain about the move it is about to make. This may require you to combine looking at a fundamental analysis and a technical analysis. There are lots of ways to try to predict what a stock will do and it is important to research as much as possible since there is a high risk involved.

Invest more money.
If you can turn 100 dollars into 1,000, imagine what you can turn 1,000 dollars into. When investing a lot of money, emotions can sometimes cloud your judgment. There will be times when you want to take out the money you have invested and collect the profits. But by leaving it in longer you could make even more money. So be sure you are making the right decisions when investing lots of money.

Posted by On 14/11/2009 Filed in: General Tags: , , , , , , , , , , , , , , , ,
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