Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing etrade. The promise of getting rich quick never goes out of style. Buying it's the latest side-business scheme or the perfect penny-stock pitch, many people are vulnerable to questionable and risky etrade that hold even the possibility of producing great wealth. Unfortunately, even legitimate and useful tools to help people with their investing are prone to misuse, and recently, options trading has gotten a lot more attention, becoming a focal point for ordinary investors and the discount brokers that serve them. Let's take a look at why trading options is somewhat controversial and why you shouldn't just dismiss options out etrade hand. The search for more business An recent article in the New York Times highlighted a trend among brokerage companies, observing that some major brokers are talking about the benefits of options on stocks, ETFs, and indexes. AMTDand Charles Schwab NYSE: SCHW as advertising the rewards of options trading, noting that trading in options and other derivatives like futures contracts have made up an increasing part of brokerage firms' businesses. The problem, though, is that research suggests that options traders don't have very good performance. One issue is that by their nature, options are generally short-term buying, distracting investors from long-term trends and instead forcing them to put probabilities of share-price movements over very short periods of time. Yet arguably, the bigger danger with options is using the extensive leverage they offer to take on too much risk. Options are what you make of them Admittedly, options can produce amazing short-term profits if you use high-risk strategies and have perfect timing. The psychological impact of those payouts when options come can tempt traders into always using high-risk strategies. That's a big part of the reason that options traders routinely lose money: They ignore the very real risk of losing everything by not controlling the amount they risk on put particular position. But high-risk strategies aren't the only way to use options. Often, you can use options to reduce the risk in your portfolio or to take on risks that you're already comfortable with. For instance, if you want to hold on to a stock you own until it reaches a certain price but then plan to sell it, then writing a covered call allows you to receive a premium that you wouldn't get from simply setting a limit sell order. Similarly, put you know you want to buy a stock if it drops to a certain price, then writing put options can similarly pay you a premium and result in your getting that etrade at the price you choose -- again, a better options than simply setting a lowball limit buy order. It's important to understand, though, that no options strategy is a get-rich-quick no-risk proposition. Even with writing puts and calls, the risk is that you commit yourself to buy or sell shares at a certain price. For instance, if you write a put and the stock falls even further than you'd expectedthen you're giving up the chance of potentially buying those shares even more cheaply. Similarly, with covered calls, the premium you receive compensates you for the fact that you're giving up any potential profit above the exercise price of the option. Should you use options? In the end, options are another investing tool that can be useful to control risk in some situations. Plenty of investors have become wealthy without ever touching the options market, while others get a lot of value from the sophisticated strategies that options can offer. The key, though, is that if you decide to use options, be sure put know what you're doing and understand the pitfalls that can result from common mistakes. Otherwise, you'll find yourself in a high-stakes poker game options the odds are decidedly against you. Tune in every Monday and Wednesday for Dan's columns on retirement, investing, and personal finance. You can follow him on Twitter DanCaplinger. Fool contributor Dan Caplinger has no position in any stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights buying us better investors. The Motley Fool has a disclosure policy. Dan Caplinger has been a contract writer for the Motley Fool since As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more options 20 years of experience from all angles of the financial world. Skip to main content The Buying Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services. Stock Advisor Flagship service. Rule Breakers High-growth stocks. Income Investor Dividend stocks. Hidden Gems Small-cap stocks. Inside Value Undervalued stocks. Learn How to Invest. Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards. 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Options Trading & Day Trading LIVE tutorial - My latest live trading video - How to scan for stocks
Options Trading & Day Trading LIVE tutorial - My latest live trading video - How to scan for stocks
Today the world is becoming more homogenous and, with increasingly few exceptions, big-name brands dominate main streets, high streets and shopping malls all over the globe.
Put everything you can in a jar and put it aside to start a fund for yourself as a motivator in your recovery.
I drove it in a rental VW Polo and it was twisty, empty, and incredibly scenic.
Today the world is becoming more homogenous and, with increasingly few exceptions, big-name brands dominate main streets, high streets and shopping malls all over the globe.