Are bicycles more dangerous than cars? Its often the first question I hear when I talk about trading options: Was it their broker? Or just someone like them who repeats without thinking? They are tools with many features, requiring study and practice. Options, however, are complex tools with many features—can you compare a bicycle with an automobile? Stocks can go to zero, and options can do so, too.

In the last Big Recession —when stocks dropped all the way down to DOW 6, those who sold themselves out in the panic lost fortunes.

However, smart investors know how to protect themselves and choose strategies that generate profit or protection even in a down market. But not everyone is that smart.

So, it is true? Stocks can only be bought or sold.

If you buy and they go up, and you sell, you make a profit. Or you short and they go down, you also profit. You buy and they go down, or sell and they go up, you lose. How risky is that? With options you can also why are options riskier than stocks you pick the wrong strategy. Options are more complex, and you have to think more about what you are doing.

Bicycles are more dangerous than cars because they have no protection. Stocks are like bicycles. Options are like cars—you can forwards or backwards, and you have more protection. With options you can use much less capital to control why are options riskier than stocks stock, so your capital is safer.

With options you can buy stock at a lower price than with direct buys.

Reducing Risk With Options

Does that mean more or less risk? In addition, you can lock in the price of a rising stock now. Imagine you were convinced that a stock was going much higher, but you needed to sell something first.

Why are call and put options considered risky? | Investopedia

You could lock in the price today, and even make a profit by the time your money comes in. With extra income, you are reducing your potential loss. Options can protect against loss, even create a profit, when the market drops.

Tiger teaches test drive unlimited 2 cheats ps3 money hack trading at Honolulu Options Traders.

Risk is inherent in life, business and gambling.

Stocks Are Riskier Than You Think - WSJ

It is dominant in the stock market. How does one handle risk in life……? How does one do risk taking verses profit taking in the stock market? I have an answer….

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