It is hard to get involved in the market when looking to make money. It should be noted that while some have made “quick money”, there have been more people who have lost quick money. Therefore, it is important to protect yourself and your hard earned money when getting involved within the market. By purchasing some put options, you give yourself an opportunity to protect yourselves. Also, selling call options is another way that you can protect yourself.
- Protecting yourself when you invest into the market is extremely important for anyone.
- No one can accurately predict where, or how, the market is going to move on a consistent basis.
- Getting into the market is only for those who can control their emotions on a consistent basis.
“The performance-risk ratio stands at 3 to 1. Thus, the investor could choose to go with this strategy, fully informed and able to judge whether chances of success are sufficiently high.”