as per subject.. anyone into that? any success story or horror stories to share?
Hmm....i attended a seminar once. The speaker is very passionate about options (speaks like a motivational speaker) and he shared with us his financial success,showed us the properties he owned. He claims to have studied all financial tools and that options trading is the best way to earn money. During the seminar, he showed us his past students' trading successes and these people made huge profits (5 to 6 figure sums). His options course is expensive, i can't remember exactly how much but it cost a few thousand dollars. After his seminar,his staff will start a lelong style of enticing you to sign up and there is a "special price" if you sign up on the spot.
Anyway,a friend of mine signed up and attended his course. She told us that throughout the week, he taught them with enthusiasm and he shared plenty of his knowledge. He even traded together with them. However he is conservative as he will stop trading after he make a small profit of maybe a couple of hundred dollars.
I have no doubt that the speaker is wealthy (Amex titanium credit card, owns a luxurious seafront residence in Sentosa, appeared on the front cover of Millionaire Asia magazine etc..) However, i think he is kind of misleading. as he did not clearly state whether options trading made him rich. I believe he became wealthy through shrewd real estate investment and not through options trading. He probably invested the profits he made from options trading/teaching into real estate and his money grew......
Till now,my friend and most of her classmates are still losing money. I believe the success examples showed to us during the seminar are real life cases but maybe these people are like the 10% of his total student population who managed to make a profit? In addition before they made a $100k profit in one trading attempt,how much $ have they lost previously? I think the speaker is a very good speaker and he knew how to capture the audience with the right words too. Addressing the audience who are parents, he showed them a photo of his toddler and said to them...."i was born poor but my son is born a millionaire. Everything i have is under his name." blah blah blah.....
No, i did not sign up. I might join in the fun if i have plenty of cash to burn but i would prefer to invest in real estate.
There are calls and there are puts, there is buy and there is sell.
As long as you sell an option, be it sell a call or sell a put option, you have unlimited liability. Some options are traded on a margin, in other words you are leveraged. If you see leveraged options, and the market moves against you, you can be made a bankrupt overnight easily.
I would suggest that you do not touch them if you cannot qualify or quantify the risks.
There are calls and there are puts, there is buy and there is sell.
As long as you sell an option, be it sell a call or sell a put option, you have unlimited liability. Some options are traded on a margin, in other words you are leveraged. If you see leveraged options, and the market moves against you, you can be made a bankrupt overnight easily.
I would suggest that you do not touch them if you cannot qualify or quantify the risks.
words of wisdom.
options are dangerous. i don't know if it's right to say this but buying options is like buying a promise/contract. promises and contracts can be broken and destroyed. likewise your investments too. (any market guru can confirm what i just said? thanks.)
honestly, you need to enter the market with the mentality that you may lose your investments anytime. and if you can tahan losing this sum of money invested, yes, you're ready to play the market.
don't play the market with your milk powder money.
But what is most important is that you must play this game with money you can afford to lose. Also you must be comfortable with the losses if any.
i like this site:
http://www.investopedia.com/terms/s/stockoption.asp
anyway, are warrants and options synonyms?
Options are not dangerous. Its a misconception. You need to have knowledge and a non gambling mindset to play the game.
Anything can be dangerous if you have no knowledge. Example, will you let a non certified surgeon to operate on you? Thats a big gamble, isn't it.
But what is most important is that you must play this game with money you can afford to lose. Also you must be comfortable with the losses if any.
To me, options is not much diff from warrants & rights. There's expiry date & exercise price (correct me if i'm mistaken).i thought so too. ha.
and yes, one's gain is another's loss.
rubbish lah, options, especially derivative options are classed as high risk products. all derivatives are high risk products.
To me, options is not much diff from warrants & rights. There's expiry date & exercise price (correct me if i'm mistaken). All r hi risk investment like obfuscate said. Some books (eg. rich dad poor dad) make options trading looked safer & easier but it isn't. Options r tied/tagged to the mother share, so market fluctuation applies.
Simple logic: if its so easy to make money out of options & everyone makes, who's going to lose money for the gainers? Econ 101: Someone gains is another one losses.
so anyone has first hand experience on it? which broker do you use?
i trade in nasdaq for 2 years and burned quite some money already so i can say my risk tolerance is higher now
now i'm considering investing in this options trading because it looks promising on paper and less risky than stocks (AFAIK). need to have some plan of action before the market picks up ;p