Are options really that much riskier than trading in stocks?

Are options really that much riskier than trading in stocks? Well, yes and no. The truth is that for most people who are not trained properly in how to trade options, it can be EXTREMELY RISKY.

This is because when used inappropriately, you can lose 100% of your investment or a whole lot more within a short period of time. In fact, options can expose you to unlimited risks when traded in the wrong way. This means that you could lose a lot more than your initial investment as compared to stocks where you can only lose whatever you have invested.

Investing in Options requires a lot more knowledge, skill and discipline as compared to investing in stocks alone. The reason why many people lose money in Options is because they lack the expertise in buying the right kind of stocks (i.e. value or momentum style)and are totally ignorant of the true value of the stocks on which the
options are written.

This is the ultimate recipe for disaster. That is why I need to ensure that you have a really strong grounding in stocks, before I introduce to you the amazing world of Options.

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