To make a success trading in stocks every man should learn everything he can about the stock market and the ways to operate in the market in order to make the greatest success. He should learn to take the smallest risk possible and then try to make the greatest profits possible. The more a man studies and learns the greater success he will have. We quote Proverbs 1: 5- "The wise man will Increase learning." Again, Proverbs 2: 11- "Discretion shall preserve these; understanding shall keep thee. "Proverbs 3: 9- "Give instructions to a wise man and he will become wiser. Teach a just man and he will increase in learning." The "Book of the Lambs" says that the fear of the market is the beginning of knowledge. Many people do not realize that without preparation and knowledge the stock market is dangerous and that it is easier to make losses than it is to make profits. However, the risks in stock speculation or investment are no greater than in any other line of business if you understand and apply the proper rules to speculative trading, and the profits compared to risks are greater than in any other business.
CONTENTS
PREFACE
WHAT ARE PUTS AND CALLS ON STOCKS
SPREAD OR STRADDLE
HOW PUTS AND CALLS ARE SOLD
WHY PUTS AND CALLS ARE SOLD
LENGTH OF TIME PUTS AND CALLS ARE SOLD
HOW TO BUY PUTS AND CALLS
PUT AND CALL BROKERS
ADVANTAGE OF BUYING PUTS AND CALLS DIRECT
THE ADVANTAGES OF PUTS AND CALLS TO THE BUYER
HOW TO USE PUTS AND CALLS IN PLACE OF STOP LOSS ORDERS
WHEN TO BUY PUTS AND CALLS
WHEN TO BUY MORE PUTS AND CALLS ON THE SAME STOCK
HOW TO TRADE AGAINST PUTS AND CALLS
KIND OF STOCKS TO BUY PUTS AND CALLS ON
EXAMPLES OF TRADING WITH PUTS AND CALLS
RULES FOR BUYING PUTS AND CALLS ON LOW PRICED STOCKS
HOW TO SELL PUTS AND CALLS
SELLING CALLS TO GET SHORT OF THE MARKET
HOW TO PROTECT YOURSELF IN SELLING PUTS OR CALLS
BUYING A PUT AND SELLING A CALL AT THE SAME TIME
ARRANGING TO SELL PUTS AND CALLS