To Trade or Not To Trade
I have been reading some books about trading, especially on options. I think that I have a fair understanding on why it is hard to make money with options. Not only do you have to be correct about picking which stock will go up, your gains have to overcome the cost premium of the option itself.
(If you don’t understand options or trading, I’ll point you to the usual source of knowledge and wisdom.)
There are different ways to participate in the market. Heck, even with regular stock purchasing, you can invest for the long-term, or you can day-trade the trends. And yes, there is less margin for errors with the day trading: you could be down after coming back from your coffee break if you are trading a stock you don’t know well.
The hard thing about trading is that you could be totally be doing the “right” thing and still come out with less money.
