When looking to invest into the market, you need to consider a couple of different things. First of all, it is a risk. There is no way around it. There is a large risk that comes with getting into the market at any level. With that being said, you can hedge your risk, or your bet, a little bit with things such as options. Familiarize yourself with options trading prior to investing so you know how to limit your risk.
- Getting involved into the stock market is a unpredictable way of trying to grow your money.
- There is countless possibilities of how you can enter into the market at any point.
- You want to hedge your risk as you get into the market or you can lose everything.
“Over the past decades, implied volatility has been overstating the actual volatility. Thus, historically speaking options have been too expensive. This gives option sellers an edge.”