Personal Finance Advice: How to Make Quick Cash

Hello. how to make quick cash. Now, of course, as I’m sure you’re expecting me to say, if it was easy to make quick cash there wouldn’t be as much crime around as there is, because for a lot of people, breaking the law is the quickest way to make some cash.

And just like breaking the law the legal ways to make some cash quickly are also dangerous. They’re also risky.

What you have to bear in mind is always the safer the way you’re planning to make some money, the less money will allow you to make, and the more money you think you can make more quickly, the more likely you are to lose everything, your house, your shirt off your back and so forth.

That said, there are a few basic rules. One is for example, that if you have good credit and you have people who trust you like brokers, you can do a lot to make money very quickly.

Not necessarily huge amounts of money but enough money to for example keep your business afloat, the most vital thing is that you have a good name.

And if you have a good name, you haven’t defaulted on your credit previously, brokers have found you reliable, you always pay your bills on time, you get quite considerable leeway.

You get cut a lot of slack, in the American phrase. For example, if you are trading options and you’ve not traded options before you should go long and on no account ever go short.

However, if you know what you are doing, and you learn about options thoroughly, and you spend a year or two experimenting with them and you have a good relationship with your broker, and you go short, yes, you can make lots of money very quickly. Of course, you can also lose everything.

And I mean your car, your suit, your house, everything. But, if you understand what you are doing you should be able to prevent that from happening.

When you sell an option, you’re effectively issuing an insurance policy. And you’re insuring somebody else against a loss which can be absolutely massive, for a fixed premium.

So you get a chunk of money upfront on the basis that if things go badly for them, you’ll produce a huge amount of money for them in the future.

So the quick way to make quick cash in options is to have a good relationship with a broker, to understand the options market thoroughly and I mean thoroughly, and then sell options, sometimes called writing options, making sure to keep a very close eye on how the price is moving and cover yourself if it’s moving towards exercise.

So if you’ve insured people and you said yes, I will buy back your options if the price starts to fall, if you see the price falling you’ve got to be prepared to take your loss immediately by the necessary futures, square out your positioning and get out.

If you have the discipline to do that, you understand what you’re doing and you understand options, then yes, on a given week you can make a quick chunk of money by selling some options especially if they’re near the expiry date.

But if you don’t know what I mean, if you don’t understand words like strike rate, call put expiry, you should on no account be thinking of doing this.

So in other words if you keep a good name, you’ve got good credit you can when necessary make chunks of money very quickly. But you’ve got to have discipline, you’ve got to have knowledge and you’ve got to be prepared to take your losses sooner rather than later.

Thank you and good luck.

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