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Using the market to generate income

Excerpt from: Day trading newsletter Issue No. 014

Using the market to generate income

From: James

Hello Christopher,

I`m a foreigner living in Spain and have some US$ and a trading account with which I can trade in the US markets. Which I`ve done last year and the first months of this year. I did loose some money this year (still own a few (100) sunken shares (wcom, qcom ;-)). And have some investments, like oil and invesco income fund. Now I wantto `get back` to the market and generate some income.

I`m looking at options, I did some very successfull transactions last year. Read many books like `trade options online` from fontanills and `how I trade for a living` etc. But still haven`t done real trading; fear I think. I think my psychology for trading the market is not yet peak, I`m working on it. What do you think is the best way to restart again after not having done any investing for the past 8 months? Which % to invest from cash I have?Do this with options? I have a sabbatical year and I can spend the entire day on trading, if I just could convince myself I can really generate(short-term) income with this.I hope you could shine your light on this ;-)

Many many thanks in advance!Best regards,James

~~~Christopher's Response~~~

First of all, you can rest assured that you are not alone. I often talk to and receive questions from people that hold shares from trades that have gone against them. From the way that you have presented your question I assume that your shares of WCOM and QCOM are exactly that...

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