how to make money in stocks and how to get rich_88

very speculative and involve substantialy greaterisks price volatility

than do common stocks. Winning investors should first learn how to

minimize the investment risks they take, not increase them. After a person

has proven he or she is able to make money in common stocks and

hasuficient investment understanding and actual experience, then

When and if you do consider options, you should positively limit the

percentage of your total investable money comited toptions; 10%

to 15% is a prudent limit.

Options are like making all or nothing bets. If you buy a three-month

call option on General Motors, that gives you the right to purchase 100

shares of General Motors at a certain price anytime over the next three

months; the option could expire worthless at the end of three months if

General Motors comon stock does not perform as expected.

If you buy options, you are better off buying longer time period

options—six months, or so.