Myths And Misconceptions Of Options Trading

There is no real way to answer this question. Any of them can be wildly profitable, any of them can wipe your account out completely. It comes down to trading methods, time horizons, and the amount you wish to risk. For Warren Buffet, stocks have been most profitable. For George Soros it has been currencies. For Lewis Borsellino it has been futures. Options well, options are the poor man's race track. Just kidding, don't know any large option traders. That being said, options limit your risk to a degree but also limit your reward, stocks have very little leverage which demands you have more funds, and both futures and forex allow so much leverage that you can make money insanely fast or blow your account in a couple of days depending on how you do. Forex tends to trend nicely, which is great if you're a long term trend trader. However it's an unregulated market where 99% of the brokers are absolute crooks. Futures contracts expire anywhere from one month to three months out, which means it is harder to trade long term . Same goes with options. However, futures have significant tax advantages over stocks, which can help tremendously when that is factored into the equation. Stocks buy and hold has turned into buy and hope. Hope it helps, from someone who has traded all four and stuck with futures.

I think it all comes down to risk management and position sizing. Mkae sure that no single loss can make a serious damage to your account. This is what we teach here on the SteadyOptions forum.