I was wondering... Say, my risk tolerance tends to zero, but I still want to make money trading - what is the best way for me? So far my number one pick is covered calls, but I'm curious if there are other options. I'd be happy if you could share your wisdom with me :smart:
EnlightenedJoe
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Get a job at the broker/bank and trade against the internet joes. Easy money and no risk.
itspossible
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Good question.If you have a low risk tolerance i would suggest that you trade small so if you do lose it will not hurt.Only enter a position where you expect movement and dont hold too long.you will either win or lose.if your timing is good and other factors are with you you may have a slight edge.Obviously you must set a stop and take it like a man-say £30 stop.
itspossible
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i disagree.long term is bleeding to death slowly unless you pick right of course.:cheesy:
Well, I understand your way of thinking, but how is it low risk? The rate of risk is as high as ever, its just that I risk to lose less money. That's not exactly what I have in mind, I imagine some financial strategy like, maybe, hedging, but less complicated or providing less risky rewards...
So basically your low-risk trading strategy is becoming a financial advisor?
Well, that's a legit option 
piphoe
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So basically your low-risk trading strategy is becoming a financial advisor?
no, not an FA, a hedgie
EnlightenedJoe
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So basically your low-risk trading strategy is becoming a financial advisor?
Financial advisers are regulated. You will have to take exams and stuff.
Become a trading trainer instead. There is no entry requirement. Type up a broker statement using MS Word, post it up on the internet and you are off to a prosperous start. People will be queuing up for your training and you don't even have to trade or know how to trade. Just say this and that to them, such as follow the trend, higher high, lower low, support, resist, etc, etc. If they make a loss, tell them their psychology is in the way.
And that what they are lacking is faith in themselves and in their Master. Hm, anyone heard of some religious trading sects?
EnlightenedJoe
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And that what they are lacking is faith in themselves and in their Master. Hm, anyone heard of some religious trading sects?
I didn't think of that. You are clearly a natural when it come to being a trainer.
Sorry, I guess you've missed that part where I said that I still want to make at least some money.
options-george
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I hope you don't mind if I make comment on your original post: the typical covered call strategy is by no means a low-risk strategy. It's a simply a strategy that has small wins most of the time, but every now and then can land an unprepared trader/investor with a huge loss. Unless you are consistently good at picking the correct direction of the underlying instrument, covered calls is still a negative edge strategy, and will lose in the long run.
It's important to not confuse "winning most of the time" with "low risk".
I concur with some of the other posters have said - if you are trading somebody else's money then you can arrange so that you take only a share of profits, but not a share of losses. That would be quite low risk.
With a risk tolerance tending towards zero, is trading really the right game for you?
Or do you mean tolerance of losing the game? I would go along with that - we all have a zero acceptance of losing the game, but that doesn't mean rejecting losses amongst the trades along the way.
Losing trades aren't necessarily failures on your part. With increasing experience the losers increasingly become simply the premium you have to pay to be in the market: and sometimes this is repaid and sometimes its not,
Or do you mean tolerance of losing the game? I would go along with that - we all have a zero acceptance of losing the game, but that doesn't mean rejecting losses amongst the trades along the way.
Losing trades aren't necessarily failures on your part. With increasing experience the losers increasingly become simply the premium you have to pay to be in the market: and sometimes this is repaid and sometimes its not,
Some broker offer bonus no deposit and this is also as one opportunity start trading with free of risk, although bonus no deposit usually also has certain rules but if any trader they have good skill hence they can making good profit from bonus and might will become real cash money
What you and some of the others posters propose is a nice and truly safe way, but to do so you'd need some special permits or something. What I had in mind with this questions is some kind of instruments or strategies that are available to any trader.
Well, not necessarily zero, but I wish to find out THE LEAST risky trading strategy or instrument (while still making at least some money).