/biz/ - Business & Finance

>>18194753
Some redpills from last Thread

>I want to make theoritical pennies for years that I never withdraw and then lose half of my intitial investment because of an economic crisis
Stocks/Unleveraged ETF. Lose only portion what you paid. Never win.

>I want to do day trading buying low selling high
You don't have insider information. You will buy high and sell low.

>I want to long X by paying a premium but with no risk of losing all my money
Buy a Call. Lose what you paid more than half the time. Make money based on actual price difference (e.g : +50USD for a stock), not on it making +1% (Much better than stocks at capturing growth).

>I want to short X by paying a premium but with no risk of losing all my money
Buy a Put. Lose what you paid 90% of the time. Become rich during a black day.

>I want to lose all the invested money 99% of the time but make crazy returns the 1% of the time i'm right
Buy A LOT of Call/Put. Above was playing the roulette with red/black. Now you are putting everything on the same number.

>I want to make a lot of pennies 99% of the time but be bankrupt the 1% of the time i'm wrong
Write Put/Calls. Win a dollar. Lose your house.

>I want to leverage the fuck out of my money and lose it all because I don't understand the financial products i'm using
Anything else.

>What are Futures ?
The buyer of the future MUST buy the underlying asset from the seller at the agreed date for the agreed price.

>What are CFD
Contracts for Difference. It's like a future, but you don't even have to buy/sell the underlying asset, making it uncorelated to the liquidity of the market. You simply bet on price X and pocket/pay the difference from the spot price when maturity is reached. In case of serious turmoil and no hege, can make you bankrupt.