Tuesday, May 22, 2012
Why Am I Trading Stocks and Options?
What could be more ideal for an RVer? With portable internet access you can trade almost anywhere you are RVing. If done at a profit it will provide a more than adequate income. For instance if you have $100 to trade on options and can double it the first month (more than possible using options for instance read my previous post regarding LOW the 86 cent put could easily more than double in a month). You will have $200 to trade next month. If you can double your cash six times in one year you will have $6400 to trade with. Take out half to pay your taxes and to spend and that will leave you $3200 to trade next year. If you can double that cash just 4 times you will have $25,600. Reduce it by half for spending and taxes leaves $12,800 to trade with. Double that four times and you will have $102,400. Reduce it by half for spending and taxes and you will have $51,200 to trade with. Double that once in a year and that will afford you a really nice RVing income or income supplement. Of course the sky is the limit for profits and you only risked $100. Many online brokers like OptionsXpress.com will allow you to open a brokerage account with any amount of cash, even $100. The commission to trade 1 option contract is only $14.95. So if you were to trade my LOW $26 put option for 86 cents it would cost you $100.95 with the potential of more than doubling your cash (of course you can lose it, too! There is no profit without risk that I know of no matter what business you are in).
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