" How To Make Money Trading Stocks: Trading is a Big Risky Business

How to Make Money Trading Stocks

Friday, October 7, 2011

Trading is a Big Risky Business

Trading stocks is a big risky business. So be careful. The safest way to trade is to buy stock shares. The riskiest way is to trade options and futures because those are contracts based on their own price not on the price of the stock itself. Although there is a relation, but they are done differently. For example if you buy an call option at 2 dollars share at the strike price $40. Now the price of the stock is $40. After few days the stock price goes down to $39. Now your lose almost all your money since the stock price is lower than you strike price.
On the contrary if you buy stock shares you lose some money but not all your money.


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