Once you have a solid understanding of the basics, you might be curious about more advanced trading strategies. These methods offer the potential for higher returns but also come with significantly higher risk and complexity. They are not recommended for beginners. Options trading is one such strategy. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset (like a stock) at a specific price (the "strike price") on or before a certain date (the "expiration date"). A "call option" is a bet that the stock price will go up, while a "put option" is a bet that it will go down. Traders use options for speculation (making large bets on price direction) or for hedging (protecting their existing positions from potential losses). The value of options can change very rapidly, and it's possible to lose your entire investment in a short amount of time. Short selling is another advanced technique, which is essentially a bet against a stock. In a normal transaction, you buy low and hope to sell high. In a short sale, you do the opposite: you aim to sell high and then buy low. To do this, you borrow shares of a stock from your broker and immediately sell them on the open market. Your goal is for the stock's price to fall. If it does, you can buy the shares back at the new, lower price and return them to your broker, pocketing the difference as profit. However, short selling carries potentially unlimited risk. If you buy a stock, the most you can lose is the amount you invested (if the stock goes to zero). But when you short a stock, there is theoretically no limit to how high its price can go. If the price rises instead of falls, you will eventually have to buy the shares back at a higher price to return them, leading to a loss. If the price continues to skyrocket, your losses can become massive, far exceeding your initial investment. These strategies require a deep understanding of market mechanics, risk management, and a significant amount of capital. They are tools used by professional traders and are not necessary for building long-term wealth through a diversified investment portfolio. For most investors, a steady, long-term approach is far more prudent and successful.