ORLANDO, Fla. – This week on “Black Men Sundays,” host Corie Murray interviews Rey Simmons, back again to share more investing advice.
To start, Corie asks Simmons a question or two regarding options trading. For instance, what’s the difference between options trading and day trading?
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“There is a bit of a slight difference. With day trading you could be trading by the minute, every five minutes, every 15, hourly, you can swing trade. When it comes to options, it’s a little bit different because you’re actually using stocks in the market for almost, like, leverage,” Simmons said, mentioning he does a bit of both methods. “For example, with day trading, you can day trade anything from options — some people day trade Forex and other instruments as well — but the reason I like options and what differs options from day trading is you are allowed to play with a lot more money. Or, let me put it this way: you don’t need a lot of money to play options versus if you were day trading.”
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We’re likely all familiar with the possibility of losing a couple hundred bucks if we forget to stay focused while day trading, or perhaps just by day trading at all, so what kind of risks are involved with options trading instead?
“There’s a risk with options, there’s a risk with day trading, there’s a risk with crypto, there’s a risk with investing, period,” Simmons said. “...I would say what separates it from gambling is when you’re looking at charts. The charts give you a footprint of what has already happened and you base those footprints off the probabilities of what could be happening next.”
Hear the full interview in Season 4, Episode 15 of “Black Men Sundays.”
Black Men Sundays talks about building generational wealth. Check out every episode in the media player below.