You might also want to keep pouring in funds into that stock throughout the years to raise your total investment because in about 17 years, college tuition will cost many times more than it does at present. Now, if you need the money in only a couple of years, then you will be better off putting your money in a general market fund or opening a CD account. You might be able to find a considerate and forward thinking stock broker who will analyze your portfolio and advise you on how to invest your money according to your needs and lifestyle.
But there is another side of options trading. Perhaps because it lacks the explosive profit potential of buying puts and calls you don’t hear as much about it. I’m referring to “writing” or “selling” it goes here.
Creating Your Watch List: your watch list is like your pot of gold. It will overflow with endless trading opportunities. This list is your 50-100 best stocks. Your going to review the stock charts each night, or week, looking for potential option trades.
Not all of us have time to spend doing research on the internet or via online tutorials as most of the times, we are busy with our professional lives. This is one of the reasons why you need to get professional help. stock broker is the person who can help you out in trading and investments. He will be able to offer proper guidance to the people who do not have much information about investments, market movements, loss and how to earn profits. It is also possible for you to get more profits as they know when to enter or exit the trading. He will be able to support you in storms and winds in the stock market.
2) GET YOUR SYSTEM PROGRAMMED: Put your system into a program that can be run on a computer. You are a stock market dummy so now let your computer do the thinking for you. You do not have to understand technical analysis; you just need to love and follow your computer. You do not even have to think about markets; you just need to place the orders your computer tells you to place.
You can also get a good stock trading software that you can use to be able to get good data on the stock market and help you set up your trading strategy as well. These days, people would want to make things easier especially when it comes to making money and if you want more than just a good guide to stock trading, you may want to get yourself a trading software to assist you in your trading needs and help you test your trading strategy as well.
If the buyer of the stock option decides to make use of their right to buy or sell the stock or asset, the seller is obligated to allow the purchase at the price agreed upon when the option was purchased. However, the buyer of the option can also let the option to buy or sell the stock expire on the expiration date.