Does anyone here trade stocks or options on the side? It kind of fits with some REI personalities. I personally don't, because I can't stomach losing a penny, but was just curious and wondered how it was working out for you? My buddy was telling me about sites where you can mimic or copy professional trader, but I am VERY skeptical!
I used to trade options for several months, just like how your buddy recommends. "mimicking a professional trader" while learning the ins and outs.
I would sometimes make over $10K in a day, and lose $15K the next. Eventually, I lost more than I made, and the stress and fast pace was killing me.
When I replenish my "play $$", I would look into it again but be a lot more conservative (such as selling covered calls etc)
I enjoy the challenge & participate in REI and stocks. I'm a Buffet investor. Chinese, not Warren, I like a heaping plate of everything that works!
I'm currently trading stocks and options. It works out great and you don't have to have 50% account swings in a day. That's dangerous and way too leveraged. I can calculate how much I'll make on a trade before I execute, control my losses, and it's a great passive source. The trick is to be on the 'sell' side of options. Currently making about 1% per week on my whole account. Example: You can pick up 100 shares of stock A for 40 dollars today, and sell a call option for 1 dollar expiring 2 weeks from now at 41. If the stock drops to $39 you are break even because you sold a call netting you $1. If the stock does nothing you keep $1, do again in 2 weeks (or less), rinse, repeat. If the stock rises to 41.01 you lose the stock, but keep 41-40 PLUS the $1.00. Oversimplified, but it is fantastic.
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