Stock Market Today

The instrument you want is called an Option. An option can give you 1:100 leverage which means if you play with $1000 it gives you the same power someone with $100,000 cash would have! A regular margin would only give you 1:2 leverage or $2,000. So in order to make money you need to have money and this instrument magnifies your funds by a factor of 100X.

For buying options I recommend a low-fee brokerage like sogo where you can buy options for only $3 plus just 70 cents per contract. That’s the lowest in the industry and will help you make money faster.

Trust me when you are playing small for the purpose of learning then you don’t need people charging you $10 a trade like most brokers do so sogo is good in that respect. Later if you become more seasoned you might want a fancier broker. And one last word of warning, never never buy and sell the same stock in the same day more than three times a week. It’s the PDT rule.

While you are learning about stocks also read up on options. That is a must if you want to be an investor.

Hit amazon and look for 5 star reviews on books. Start with this book on options:

Option Volatility & Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg