There are many advantages to options trading as an investment strategy. One of the main advantages is that trading options requires you to commit less capital to an investment than a stock or other type of market trade requires. Even so, you can make as much or more profit as with other types of trades. This can mean more money in your pocket for a smaller investment.

It is possible to actually make a lot more profit, for a lot less outlay, and risking a lot less.

. Trading Up, Down and Sideways

Options give the trader plenty of extra scope to make leveraged bets on the direction of a stock; whether you believe the stock will go up, down, or move very little in any direction. This means that you can make money on stocks even when they are not making money… You gotta love it!

You may wonder why the prices of goods go up and down so often. One of the reasons is the law of supply and demand. Supply refers to how many of a certain good or service are available for people to purchase. Demand means how many people wish to buy that good or service.

How does this work? Let’s say that a brand-new, super powerful video game is about to come out. The game makers must decide how many of the games to make so they are not stuck with too many. They then have to decide how much to charge for the game – its price. They would need to charge enough for the game to cover the costs of creating the game, advertising the game, shipping the game to stores. Since they also wish to make a profit on the game, they will also want to figure that cost as well. If the price of the game is too high, however, people may not be able to afford it or decide it is not worth the price and there will be too many or an oversupply. If the price is too low, costs will not be covered and little profit will be made even though the game may sell very well. The company would lose money and may even have to close. The people who invest money in the company would not want to give the company money anymore to make more products because they would not get a good share of the profits. Usually as prices rise, the supply or amount of a product increases and as prices fall, the supply decreases as more people can afford the product.

If the product is a truly excellent one, there will probably be high demand. Also if it is well advertised, more people will know about the product and be apt to want it. If the product is not well advertised or is not a good product, people will not want it and the demand will be low and the supply greater. In the case of the video game, if a better game came on the market later with superior technology, the demand for the current game would probably drop and thus the price would have to drop to sell it.

Other factors that affect sales of an item are if the product is available, how good the customer service is, the appearance of the store, how the items are displayed – even what the parking is like for a store or the colors of the boxes the product is in.

What does it mean to own stock? Basically it means that a stock holder has a share in the company it holds stock in. In a sense the stockholders own a piece of the company that it has stock in. Stock shares are traded, bought and sold at a stock exchange such as the New York Stock Exchange which is the best known, but by no means the only stock exchange. Stocks are a type of security, Securities are instruments giving to their legal holders rights to money or other property. Securities include stocks, bonds, notes, mortgages,

How does one get to own stock? Usually stock is obtained through a stock broker. Let’s say you wish to own a piece of Toys R Us or Coca-Cola. You would call a stock broker and he would tell you how much a share in the company would be. He would then place an order for the stock for you. When the stock is purchased, the broker would keep a stock certificate that shows that you are the legal owner of the stock until you choose to sell it.

What are the advantages of owning stock? One is that it allows the stock owner to share in the profits of a company. These profits come in the form of dividends, which are allocated according to how much stock one holds in the company. Of course one of the disadvantages is that one can lose money if a stock’s price goes down.

What makes stock prices go up and down? There are many reasons: how much profit or loss a company has, the time of year, good or bad publicity about the company, how the economy is doing in general, etc..

There are several different kinds of stock. Preferred stock is a type of stock in which the stockholder gets a certain percentage of dividends each year based on the profits of the company. Common stockholders get dividends based on the remainder of the profits after preferred stockholders have been paid their dividends.

Another way to purchase stocks is through mutual funds. A mutual fund is an investment company that continually offers new shares and buys existing shares back at the request of the shareholder and uses its capital to invest in diversified securities of other companies. An investor puts money into a mutual fund and then the company invests the money on behalf of the investors.

What are bonds and how do they differ from stocks? A bond is a certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date. Basically one is making a loan to the government or corporation and gets paid a sum of money in the future for letting the government or corporation borrow the money. Bonds are one way the government raises money besides taxes.

Money is something that everyone knows something about. But what is its relationship in the economic picture?

Money is defined as anything that is used as a medium for exchange for goods and services. This is different that trading or barter where one directly exchanges one thing for another. Currency is paper money issued by the government.

In ancient times, people used such objects as cattle for their medium of exchange. This was obviously very clumsy and difficult, so as trade became more important and popular, money evolved as a convenient medium or way for people as they sought goods and services.

The History of the Money or Monetary System in the United States

The money or monetary system in the United States was based on backing of two metals, gold and silver during the nineteenth century. This means that any money could be exchanged for a designated amount of gold or silver. Thus all paper money or currency was backed by gold and there later existed a gold standard in the early twentieth century.

Today’s currency is not tied to the gold standard and is inconvertible fiat money, meaning it stands more or less alone as a means of exchange, not necessarily backed by gold or other reserved metal or commodity. Money is then valuable because the government says so, by fiat..

With Silver currently trading around $ 36 per ounce. I really won’t to share with my viewer one of my newest investing strategies.  Yep you guessed it
!!  Silver bullion’s  !!  Here’s why…