So, I began investing last Spring and then ended up exiting the markets in the Summer and sat on the sidelines for the last 6 months. Now that the markets are showing some signs of life and my financial situation is set to improve, I would like to get back into the game. My goal, is to develop a sort of "savings account," via stocks. Buy and Sell stocks in a semi-active fashion, I am working full-time so my time during trading hours is limited, and overall make money. I have no objections to long-term growth stocks and no objections to holding. I have no experience yet with Trading Options. If someone has a good youtube video or link for a good source for learning the basics of Trading Options in a clear and concise manner, that would be appreciated. Any advice for a beginner such as myself? Thanks, Ddebrazza
My biggest advice for someone new to options is to view options are "gambling." I freely admit I have a hard time following my own rule, BUT my rule for options is to NOT let my total money at risk in options trades EXCEED 10% of my portfolio at any given time. For me... True generational wealth is built off value investing for the loooooooong term ("invest it & forget it"). Swing trading is a way to pass the time & generate excess capital (which is put to work through value investments once enough of it has been generated) Options trading is a one-off when conditions are overwhelmingly in your favor (again...I admittedly struggle here...as my journal openly shows!) That said, I'll dig into some videos once I get to my computer (on my phone) and shoot them over. Hope something above resonates with you or helps in some way. V
Study Option Condors and then you use the strategy to generate income on a monthly basis it's a boring concept but gets the job done.
In my opinion. You need to focus on your career and buy and hold a S&P index fund. There is no get rich quick scheme in the stock market.
I am definitely not expecting to "get rich quick," I would simply like my savings to generate more income than sitting in a savings account. and learn and enjoy the stock market in the process.
I'll second @hitman -- I learned a lot through deep out-of-the-money credit spreads & iron condors...and I still do them to this day (just look at my weekly IWM trade). The key is a rock-solid exit strategy & the absolute resolve to actually follow through with it when that 1x trade goes against you. You're setting up spreads that are 90+% probability, but nothing is perfect, so if you don't pull the trigger when things go south it will hurt really really bad.
