Selling Puts Adds Up

Selling puts can be a wonderful strategy at times. And it definitely can build up after you have been doing it for a long while.

Most new traders want to make the big returns. They want to buy that option that is going to shoot up 300% in 2 days. While that can happen every once and a while, getting such huge gains are not the norm, no matter what the sales letters say.

When you buy options you are going to be wrong, a lot. It might take 10 trades before you get one that shoots up a lot. And when you make a huge return half of the profits just go to paying off the losses.

I’m not saying it is impossible to buy options and be overall profitable. But it is a lot of hard work and gives you a lot of stress.

On the other hand selling options can be just as profitable. Not many people think that making a 10% return by selling options can be just as profitable or more profitable as a 300% possible return by buying them. But it can be because it is more stable.

If a trading account is consistently making a small percentage return every month that money is going to start to compound and eventually the outcome can be enormous.

So instead of trying to shoot for the huge returns which can be pretty hard it can still be very profitable to only take a small gain here and there and have it add up.

For more on selling puts visit http://www.stocks-simplified.com/selling_puts.html

For some stock market videos visit http://www.stocks-simplified.com/Stock_Market_Videos.html