Finding ways to make more money should be a top priority for everyone trying to achieve financial independence. There are innumerous ways to diversify your income. One of the ways to do just that is through investing in the stock market. As I work with people all over the country there seems to be a common theme. People are scared of the market. Usually people are scared of the market for two reasons a lack of knowledge and they think that it is too expensive to get involved with stock market investing. There are other forms of investing that do not cost as much as regular stock. For example, I invest in options contracts. I purchased 2 contracts for about 300 dollars. With those two contracts I controlled over 12,000 dollars in stock. The most I could lose was the three hundred dollars and the most I could gain was unlimited. The question that you have to ask yourself is how much would you rather put at risk, 300 dollars or 12,000 dollars. I am hoping that you said 300 dollars. There are some great resources that can help you to get started with investing in options. A few of the websites that I recommend are www.investopedia.com and www.optionsxpress.com. One of the best is optionsXpress. They have a great educational center that will help you learn some of the basics. The best way to learn about investing is getting a mentor or a coach. Proper offers some of the best stock coaches in the nation. Working with a stock coach can help you avoid the pitfalls and the trial and error that you will experience investing on your own.
There are two basic types of options contracts. There are calls and there are puts. Calls give you the right to buy a stock at a set time and a set price, and a put gives you the right to sell it at a set time and a set price. Some important things to remember are calls are what you buy if you think the stock is going up and puts are what you buy if you think the stock is going down. The great thing with options is that you can make money when the market is going up and you can also make money when the market is down. You can also use a strategy where you buy both a call and a put so that you make money no matter what way the market goes.
As always before you try to make more money it is important to make sure that you personal finances are under control. Making more money is rarely the solution when spending is out of control. Once you finances are under control and you have developed the millionaire mindset, then it is a good time to make more money. Have fun learning about this exciting way to make more money and make sure you work with a stock coach.
Online Resources
www.Investopedia.com
www.optionsxpress.com
www.tradeking.com
www.barchart.com
www.moneycentral.msn.com
www.thestreet.com
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