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Technology Stocks : WAVX Anyone?

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To: doormouse who wrote (7182)5/28/1999 9:33:00 PM
From: SDR-SI  Read Replies (3) of 11417
 
/k1b0:

Great post.

Although options can be a very profitable and powerful investment tool, they can also be very dangerous.

Unlike buying and selling equities, if one's timing is wrong in options, the whole investment can be lost - even if your timing is only wrong by one day, if you hold toward expiration.

It's especially important to consider that even though most Wave investors who have stayed in this investment are proving to be ultimately correct in their decision, the one thing that has been unpredictable and incorrectly estimated throughout has been TIMING.

The addition of the need for correct timing to make an options play into a successful investment brings an additional dimension of risk (and hence the possibility for greater reward).

Those who have not engaged in active options trading previously should perform their own "Options DD" by both studying available information from such sources as the CBOE site:

cboe.com

and by practicing and testing their strategies by "paper trading" until they get comfortable and arrive at a reasonable skill level.

In addition, to trade options, a separate options agreement is required with one's brokerage.

Many have made a lot of money on options. Many have lost a lot of money on options. Many have done both. Some have been wiped out.

Success requires great care, preparation and concentration.

Steve
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