I need a little advice....

Discussion in 'Stock Market Today' started by ddebrazza, Mar 20, 2022.

  1. ddebrazza

    ddebrazza Active Member

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    So, I began investing last Spring and then ended up exiting the markets in the Summer and sat on the sidelines for the last 6 months. Now that the markets are showing some signs of life and my financial situation is set to improve, I would like to get back into the game.

    My goal, is to develop a sort of "savings account," via stocks. Buy and Sell stocks in a semi-active fashion, I am working full-time so my time during trading hours is limited, and overall make money.

    I have no objections to long-term growth stocks and no objections to holding.

    I have no experience yet with Trading Options. If someone has a good youtube video or link for a good source for learning the basics of Trading Options in a clear and concise manner, that would be appreciated.

    Any advice for a beginner such as myself?

    Thanks,
    Ddebrazza
     
  2. Value543

    Value543 Well-Known Member

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    My biggest advice for someone new to options is to view options are "gambling."

    I freely admit I have a hard time following my own rule, BUT my rule for options is to NOT let my total money at risk in options trades EXCEED 10% of my portfolio at any given time.

    For me...
    • True generational wealth is built off value investing for the loooooooong term ("invest it & forget it").
    • Swing trading is a way to pass the time & generate excess capital (which is put to work through value investments once enough of it has been generated)
    • Options trading is a one-off when conditions are overwhelmingly in your favor (again...I admittedly struggle here...as my journal openly shows!)
    That said, I'll dig into some videos once I get to my computer (on my phone) and shoot them over.

    Hope something above resonates with you or helps in some way.

    V
     
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  3. hitman

    hitman Well-Known Member

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    Study Option Condors and then you use the strategy to generate income on a monthly basis it's a boring concept but gets the job done.
     
    Value543 likes this.
  4. PatelFSU

    PatelFSU New Member

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    In my opinion. You need to focus on your career and buy and hold a S&P index fund. There is no get rich quick scheme in the stock market.
     
  5. ddebrazza

    ddebrazza Active Member

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    I am definitely not expecting to "get rich quick," I would simply like my savings to generate more income than sitting in a savings account. and learn and enjoy the stock market in the process.
     
    Value543 likes this.
  6. Value543

    Value543 Well-Known Member

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    I'll second @hitman -- I learned a lot through deep out-of-the-money credit spreads & iron condors...and I still do them to this day (just look at my weekly IWM trade).

    The key is a rock-solid exit strategy & the absolute resolve to actually follow through with it when that 1x trade goes against you. You're setting up spreads that are 90+% probability, but nothing is perfect, so if you don't pull the trigger when things go south it will hurt really really bad.
     

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