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All Trading comes with its risks! it comes down to is how do you limit that Risk and how can you the maximize gains with the least amount of capital risk.

 

That is where Swing Trading Options can be a very useful tool in building financial wealth and freedom.

What is Swing Trading?

Swing Trading is a style of trading that attempts to capture short- to medium-term gains in a Stock/ETF over a period of a few weeks to several weeks.

 

Swing traders primarily use technical analysis to look for trading opportunities but may utilize fundamental analysis in addition to analyzing price trends and patterns

Why Swing Trade Options?

  1. Swing trading requires less time to trade than day trading.

  2. It maximizes short-term profit because big moves can take time to happen.

  3. Swing traders can rely exclusively on technical analysis, simplifying the trading process.

  4. Great returns with less capital at risk.

  5. Great way to ride trends and get higher returns

  6. Swing Trading can be an easier way to learn to trade and navigate the Markets.

What are Options?(Calls/Puts)

Call options and Put options are the 2 major types of options:

  • An options contract is an agreement between two parties to facilitate a potential transaction involving an asset at a preset price and date.

  • Call options can be purchased as a leveraged bet on the appreciation of an asset, while put options are purchased to profit from price declines.

  • Buying an option offers the right, but not the obligation, to purchase or sell the underlying asset.

  • For stock options, a single contract covers 100 shares of the underlying stock.

Why Trade Options?

Higher Potential Returns:  

spend less money and make almost the same profit, you'll have a higher percentage return. When they pay off, that's what options typically offer to investors.

Cost-Efficiency: 

 Options have great leveraging power. An investor can obtain an option position similar to a stock position at huge cost savings.

Less Risk: 

Options can be less risky for investors because they require less financial commitment than equities.

Hedging: 

Put options can also be used to hedge investments that you already own. You hope the investment will increase in value, but if it loses money instead, you can always sell it for the strike price specified in the option.

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