"An ingenious method of almost printing money NOW by selling puts on growth stocks is detailed. A re-investment of this capital is like being given a large loan by the bank that has negative interest on it. Kudos.

Moreover, if you trade stocks and want to minimize risk through options - this book is an essential.

The explanations are crystal clear, the examples make sense, and the strategies are profitable.

I'll be including some of these concepts in my up-coming fund management."

Kurtis Hemmerling

Risks of stocks

Now that you know what a stock is let’s analyze why people say that a stock is a risky investment.
First of all, the money you invested in company X is also called equity. Equity, in contrast to the counterpart of a stock, is the money that people are ready to risk or to lose. Just think about company X what would happen to your stake when X goes broke? You would have lost your entire 2500$.

But even if X doesn’t file for bankruptcy there is still the case where it is not generating any profits at all. If X loses, what happens to your 2500$ stake? It also loses in value. You will only realize that when you try to sell your 25% shares.

The same happens to stocks at the stock market with the difference that everything concerning the company directly or indirectly (e.g. general economic figures) will be reflected within seconds in the stock price. And as the company’s or economy’s fundamentals don’t change every day but in contrast to this stock prices vary each and every day every stockholder should know that there are also other things which influence a stock price (e.g. the psychology of the traders and investors).
Therefore, it is quite common that you will see certain stock price moves without having any news from the company or other important messages.        

Keeping this in mind it is not unusual that rumors about a stock could be spread influencing the stock price both in a negative or positive way!