For those who do not yet understand nor utilize trading options, an easy way to make some money has been demonstrated here.
As posted prior to today’s market open for January 26, 2009:
“Gold, oil, caution on alt. energy” posted as the Myspace status message on January 25, 2009.
What this meant was that an investor looking for a day’s peak sell following Obama’s “bad is foreign oil…” speech, etc., would have shown a significant profit from the day’s open. The time to sell was more than obvious following his speech that also specified ALTERNATIVE energy investment.
As with any strategy, investment comes with a considerable risk. In fact, if you are not properly informed, you could lose an entire investment. In short, the world market is a legal form of gambling. Given that you know and understand the risks, here is a simple tip that I use for commodities such as oil:
Be conservative and buy when low on a trend bottom such as it appears now. Notice that lately when an average dip occurs, investors resurface and buy (see daily, monthly, and yearly charts). For example, if one had purchased USO for its bottom last Thursday, observed the trend along with various socioeconomic considerations, the sell following today’s peak would have made any investor very happy.
Now it is time to consider buying on the cheap. If you would like to be cautious, simply purchase 100+ shares of your informed pick at the bottom and set your limit-order to sell within the next 30 days at a dollar per share higher (overlap an initial three day settle by planning ahead). Watch for trends and be ready to cut your loss if needed at any time (i.e. stop-loss orders). Wait the market out if required, and never ever take your eye off the play especially when you are investing for survival.
Options are also important especially in today’s stormy market system. Just remember that unless you are a practicing psychic as I am, your risks are considerably higher. Fortunately, I have an edge over those who are not so inclined to either believe that it is possible nor train to improve the inherent ability within each of us.
Now look again at the above prediction used to help guide investors.
Gold related stocks did in fact rise and yes, I made a profit today. This is yet one more way in which my work demonstrates a means of surviving the immediate problem of world economic restructuring, failure, and social discord.