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The Psychology Behind Trading Stocks And Making Money At Home
By Chris310
Stock trading in the United States Stock Market can be both exhilarating and scary. The dynamic fluctuations of this system are governed primarily by the human psychology or emotion pertaining to the potential loss of (fear) or gain of (greed). At the core, trading in the stock market is a gambling exercise that forces you to evaluate your life goals, psyche, risk tolerance, and knowledge; nonetheless, the “good news” is that the gambling and emotional components of trading can be reduced from 100% to about 10-20% (depending on the strategy and duration of the play) if you equip yourself with the following knowledge:
1) Technical analysis (interpreting charts in order to determine buy and sell signals).
2) Fundamental analysis (interpreting financial statements).
3) Stock Market Cycles (e.g., four year presidential cycle, annual seasonality, Halloween Indicator, or lunar cycle).
4) The available strategies
If you become versed in these key trading components, you will be able to quell the emotions and make rational decisions based on knowledge and a higher awareness. This focus will translate into you making in the stock market while staying home – kind of like a home business.
As a matter of routine, I try to exit my option trades after making 30%-35% of my initial investment. Although the pipe-dream of doubling your off one trade can be entertaining and exciting, I have found that mindset to be self-defeating in the long term and not conducive to making consistent online; I have, however, been able to double my a few times during earning announcement runs. Nonetheless, 30% - 35% is not that bad of a “Return on Investment” (ROI). That’s still significantly higher than what banks will pay you on
your money, most mutual funds, and the yearly inflationary rate.
Now if you don’t have to invest right now, there are option and stock trading strategies that you can execute without any upfront capital. However, there are margin requirements that must be met. That means that you will still have to fund your margin account with at least 20 % of the strike price (options) and 50% for short sales (stock). The bottom-line is that you need to make at home. I can show you the one (1) and only home business strategy that actually facilitated me in making the initial to invest. I know, I was skeptical at first too, but, I just thought that I would be remiss if I didn’t at least mention this home business strategy here.
I happened to discover this home business opportunity by fluke, while looking for ways to make for investment and general supplemental income. What I found was a method that relied heavily on the concept of residual income off every sale. This means that you continue to make long after your original sale occurred; it’s kind of similar to residuals that actors make every time their show airs throughout the world; they make once for their work and then again each time it airs thereafter.
Also, what makes this opportunity so unique is the training and support that the company provides; they’ve replaced all the books and CDs with a comprehensive video tutorial (located on their website) that walks you through every step of the process. You will literally have your website up within an hour and be making at home within 24 hours. I don’t consider myself a home business type of guy, as stock and option transactions have always been my passion, but I couldn’t help but spread the word on this business.
For more information, please feel free to visit my IPC website at www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit www.squidoo.com/options103
You could also visit my “Stock Market Crash Course” Blog at www.StockMarketCrashCourse.blogspot.com/ for ten (10) simple ways to trade options and make money at home.
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