Trading options for income

If I can buy a half share of TSMC every 2 weeks, that would be great, but I don’t think this is allowed in Taiwan. They got some absurd big stakes minimum with these things.

If I’m sinking millions into anything, it will be gold.

I’m a bit of an amateur to all this, but wouldn’t that require investing 100 percent of one’s money on a single trade? Followed by three or four more of the same?

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You can buy less than 1 lot ( =1,000 shares) of a stock in Taiwan.
So, you can buy 1 share of TSMC, or about NT$9,690 currently.
Do homework before replying.

It’s gone up THAT much?? I thought it was like around 600 or so a few years back.

And many of us here, myself included, were telling people to buy back then.

Well, not all of us is willing to gamble money in this.

If you think investing in TSMC is gambling, then leave the investment thread and just keep your money in bank.

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Stock market have risks, but calling all of it gambling is a bit too much. Investing in companies one believes will do better in the future is not gamble, it is investing for returns.

There are of course also gambling ongoing in the stock market, the penny stocks have a high degree of gambling in there, but not even there can all of it be called gambling.

You don’t have any money.

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I could build a nest or some such buying one share or so a month. Not looking for huge gains, just something that gains more than interest rate on savings account.

What scares me is that these things can change very quickly in factors I have no control over. TSMC is as safe as it comes, but we never know, always an element of gambling involved.

If I got time I can look into opening a securities account…

Hypotheticals. Increasing income through work is the easiest starting point.

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I understand what you’re saying but I think it’s more risky to buy shares in one company no matter how good they are. There is always the risk of failure no matter how big and solid they seem to be. Still, in saying that, I admit I do invest and even take risks in a few companies but only with a smaller percentage of my money. Most of what I have in US equities are in S&P 500 ETFs (VOO) or the total USA market ETFs (VTI).

In my opinion these EFTs are a “safer” way to invest. To me it’s like investing in a group of high quality stocks that must constantly meet the grade. If they don’t they get booted out and replaced with another stock. It’s almost as though this group is “self cleaning”. Some of the top holdings of the S&P 500 are: Microsoft, Apple, Nvidia, Amazon, Google, Facebook, Berkshire Hathaway, etc

Thanks, you too.

I agree…if you’re gambling. :wink:

If one could really make even close to 100% consistently over time then it doesn’t matter does it? Imagine if you had NT$100k, just invest 50% of your money this year and you’ll double it by years end. Let’s be conservative and say you can only make a 90% return a year.

Year 1 you invest NT$50k. By year 2 you’ll have NT$95k+. Reinvest it all and by the end of year 3 will be NT$340k+. Keep doing that each year for 20 years and you’ll have over NT$18 BILLION. I’m sure most of us wouldn’t have a problem retiring on that amount. I certainly wouldn’t.

If I could get a consistent 20% over the long run I’d be ecstatic. Right now I have to settle for an average of around 8-10% a year.

I feel that this in many ways is even riskier.

It would matter if the initial investment went bust.

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I agree. I remember first hearing about trading options years ago and everyone around me was telling me to stay away as it was really just gambling. I ignored them and started to play with options anyways and I made some money but over time I got killed. I lost so much that I stayed out of the market for years. All my savings was kept in the bank “safely” earning a minuscule interest.

A few years later after I got some of my courage back I started to invest again. This time I read more, learned more and did things slowly, more methodically and got myself back on track. I’ve come to the conclusion that stocks and options are really just tools. You can make risky decisions which may result in huge gains but that also comes with the chance of losing big or…you can use them more “safely” and make slow gains (as well as some losses) and let time and the effect of compounding work it’s magic.

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Then don’t invest in something that can completely go bust.

By that I mean, consider broad market EFTs…like ETFs that track the S&P 500 or the total US market.