How to grow investment account by trading stock options | News, Sports, Jobs



James Rochester

geek wealth

Many people would be thrilled to get a 43% return in one year from their investment account. But how can you achieve such a return in one month? Sounds borderline impossible.

But one person did just that in late 2022. He did it by investing in stock his options.

Meet Eric Ferguson

Eric Ferguson runs a stock market education business called Mindful Trader. His service allows subscribers to follow him as he trades on the stock market. He invests in both stocks and options.

His trading activity logs show that his options account increased by 43% in the 30 days near the end of 2022.

According to Ferguson, “I took an aggressive investment approach with stock options and it paid off in November. “

Readers are cautioned that Ferguson is not a financial advisor. This article and information shared through his services are for informational purposes only and should not be construed as financial advice.

Leverage for Explosive Profits

Stock options, or options for short, give someone the right to buy or sell stock at an agreed price and date.

Options are usually cheaper than the stock itself. As a result, stock options offer more leverage than stocks. This allows an investor to profit from the price movements of a stock for less money than buying the stock itself.

Increased leverage comes with the potential for additional risks and rewards. Options allow you to effectively manage more shares than if you bought the shares themselves. This means that using options can lead to greater volatility in your account balance if you take enough positions.

This is the balancing act that Ferguson manages when investing in options. He takes additional risks with the intention of amplifying the returns.

he explains, “Buying stock options can have a greater impact on your account balance than buying regular stocks. I set the odds in my favor so that I win more than I lose. This may reward additional leverage, but it certainly comes with risks.”

Investment strategy based on statistical research

Ferguson’s expertise is based on years of stock market statistical research.self-proclaimed “Number Guy” He uses historical price patterns to consider the probability of making a profit on a particular investment.

Ferguson says his investment strategy is formulaic. If a particular stock or stock his options meet the mathematical criteria of his investment approach, he can buy it with confidence.

All his investments are governed by rules and he uses very little personal intuition, he says. “I let historical research do the job of managing trade. It makes it so much easier to manage my investments because I just follow the rules of my investment strategy.”

Ferguson says history tells us a lot about how to make money in the stock market. He teaches investment strategies through his Mindful Trader Education service.

Market conditions in 2022 were not friendly

It’s no secret that the stock market did poorly in 2022. The leading market index, the S&P 500, ended the year down 19.6%.

Ferguson said it was a tough year in many ways for investing in stock options.

“The strong gains in November were a welcome change for me. Earlier this year, I suffered a lot of losses in stock option trading.To take advantage of the investment opportunities presented by the market in November, It took a lot of patience.”

His investment approach bets on the price increase of certain stocks and options. He points out that throughout the history of the stock market, stock prices have tended to rise rather than fall.

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