Lot of people say they made million in stock market and option trading but I think in reall world its not true.
2007-06-23 10:49:46 · 4 answers · asked by Zeb 2 in Business & Finance ➔ Investing
Options are much more difficult than the stock market. If you sock away money in domestic and foreign stock markets over a period of decades, particularly if you use low-cost index funds, the odds are good that you will have outperformed most other ways of increasing your savings because markets tend to move up over long periods of time and they also pay dividends. A relatively clueless person can make significant money by regularly putting money into a handful of index funds over time. Options don't work that way--they're very tricky. If you don't understand stock trading--and understand it very very well--you should just not even think about trading options.
It is definitely true that many, many people have made tremendous amounts of money by investing in the stock market, but a key question is always time horizon. If you invested in the S&P 500 market index in 2000, your returns as of today are not so great. If you started in 2003 at about the time the Iraq War was starting, they're very good. If you started in 1990 or 1980, your returns have been great. There are good arguments to be made that the returns won't be as good in the future... but the past 27 years have been pretty amazing for investors.
2007-06-23 11:08:30 · answer #1 · answered by Anonymous · 0⤊ 0⤋
1
2016-12-25 04:07:11 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Lot of people say they made million in stock market and option trading but I think in reall world its not true
2007-06-25 00:26:24 · answer #3 · answered by kamala v 1 · 0⤊ 0⤋
It's not even near easy. It takes hard work. Time. Dedication and experiance.
Read as many books on the subject for the next year as you can. Make sure at least two are on the psycholgy of trading.
Then make a decision. Ignorance and greed are the two main reasons people fail in the markets.
2007-06-23 12:26:40 · answer #4 · answered by Common Sense 7 · 1⤊ 0⤋
Option trading is a complex, yet profitable way of investing. It is something you need to completely understand before you can make your own decision about whether or not it is suitable for you. Please read http://www.optiontradingpedia.com for a complete knowledge on option trading.
2007-06-23 15:06:35 · answer #5 · answered by Anonymous · 0⤊ 0⤋