Magic of Stream

As investment adviser and having been in the field for more than a decade already has equipped me valuable knowledge that I would like to share to readers that will help them understand about the types of trading that is happening in the market. Although option is considered risky it offers more profit compared to stock trading and it permits a wide variety of strategies that can be developed at different risk levels, stock and option are two known types of trading. It is very known that option trading involves high broker fees among the different types of trading, however, it is offset by the large profit that it can gain, thus many traders cash in to this mode because of the returns it can provide to traders. Traders try to accomplish maximum returns in a short time and this often result to inevitable loss, out of greed, that is the main reason option trading became widely known as super risky. In this trading to succeed, it is important that one should use a strategy that one knows intimately and should be used consistently and with clear defined rules in order to prevent hard losses.   Two of the few of strategies which I find the most practical and safe in practicing option trading with minimal risk and offer respectable profits are explained below. Credit spread selling is a type of trading that utilizes simple and only demands uncomplicated analysis of market trends of selected stocks and it is not fitting for hyperactive traders or those who speak number jargon. In naked puts selling, the strategy involved works in an upward trending market, and has a higher margin need than that of credit spreads but still one can get the same type of returns with a low risk profile.