What kind of trade should you do in 2012?

There are and always will be many investment options available to you. Some of these methods will make you a lot of money and some will continue to destroy dreams of financial freedom due to their extremely complex nature. For 2012, I am going to share the method that will give you “at least” an 80% chance of being profitable. So let’s do this…

Look at options trading

Options trading is one of the best and easiest ways to make money online and make money in the stock market. I started investing with options trading and learning about this strategy really changed my life.

I have learned so much and gained so much from this strategy that I feel I have a duty to share my knowledge with anyone who is serious about building wealth in the stock market or building wealth in general.

There are many investors out there who have their income from options as their main source of income.

About options

If you don’t know anything about stock options, they are a way to buy and sell shares at a certain price no matter what happens to the stock itself. With options, you can choose to buy or sell a stock at $25, even if the stock is at $30, $50, $60, $80… well, you get the idea.

This is the power of options, it gives you the “choice” to do these things.

You can buy options for large profits (100% or more in hours) or you can sell options for smaller profits but with a higher chance of success.

Currently my goal is 15-20% per month or 10-15% per month in slow markets with options trading. I am willing to look for a lower return if it means lower risk and a higher chance of success.

Other Trading Methods You Should Know About

changeover day

Day Trading is where you trade the same stock multiple times in a week (5 or more). If you make multiple trades on the same stock in 5 consecutive trading days, your SE account will be marked as a day trader account and you will be required to have a minimum of $25,000 in your account to continue trading.

If you do not have this amount of money in your account, your account will be blocked from trading for approximately 90 days.

This happened to me on two separate occasions when I did some panic selling, but I was able to get out of it by working with my broker.

You can trade every day without being marked as a day trader, as long as you don’t trade the same stocks every day. By doing this, you will avoid the $25,000 minimum requirement to “maintain” a day trader statement.

futures trading

I would avoid futures trading because it involves a lot of leverage. Start with options, particularly by selling options below the strike price of the current shares.

REMEMBER: 80% of option sellers MAKE money and 80% of option buyers LOSE money.