Why Trade Options?

Mark D. Wolfinger

For many people, investing involves buying individual stocks or mutual funds. More sophisticated investors may adopt the risk-reducing strategy of diversifying their assets. These people would own gold and other commodities in addition to stocks. They may also have holdings in bonds, real estate, and stocks that are not traded on the exchanges of their native country.

Not knowing how to begin the process of investing in the stock market, a great number of investors seek advice. They may follow the ideas suggested by financial journalists—print, Internet, and talking heads on television. Some depend on their stockbrokers for recommendations on which stocks to buy and sell. Sadly, stockbrokers are nothing more ...

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