Getting involved into the stock market requires a lot of hard work and due diligence. You must be willing to deal with the ups and downs of the market if you are going to get involved. You should develop a strategy and have an idea of when you will exit a certain position. If not, you are exposed to a lot of risk. Also, there are option contracts that you can execute to have a certain hedge of risk.
- Getting into the stock market is risky and if you do not know what you are doing, you can lose it all.
- By taking this kind of contract, or strategy, you are hedging your risk of losing money.
- You need to play it smart with everything that you do within the market and be patient.
“You buy one Intel (INTC) 25 call with the stock at 25, and you pay $1. INTC moves up to $28 and so your option gains at least $2 in value, giving you a 200% gain versus a 12% increase in the stock.”
Read more: https://www.cnbc.com/id/30095574