What Type of Trading Should You Do in 2012

There are and will always be many investment options available to you. Some of these methods will make you a lot of money and some methods will continue destroy dreams of financial freedom because of 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 thing…

Look into options trading

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

I have learned so much and made so much with 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 that 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 stocks 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 “option” to do these things.

You can buy options for big profits (100% or more in hours) or you can sell options for smaller profits but greater chance of success.

I currently target 15 – 20% per month or 10 -15% per month in slow markets with options trading. I am willing to go for a lower return if it means I will have lower risk and a greater chance of success.

Other trading methods to know about

Day trading

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 account WILL be flagged 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 locked from trading for about 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 flagged as a day trader as long as you are not trading the same stock every day. By doing this you would avoid the $25,000 minimum requirement to “maintain” a day trader account status.

Futures Trading

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

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

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