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options
Options can be both very rewarding and very dangerous. You can easily double your investment. However you can also eaily lose all your money trading options. When trading options it is best to be careful. Only use a small amount of your money in option trades. This way if you lose you will not lose much. I would say no more than 10% of your account should be invested in options. Also you should risk no more than 2-5% of your account in any 1 trade. That is called position sizing. Another thing you should do before trading is to develop your own unique system. That way you can get used to it. You will also be able to see its strengths and flaws. Ex: maybe a system works really good when the markets go up but bad when they are going down. If you would like to learn more about options visit this site. http://www.stocks-simplified.com/options.html |
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