Using the stock market for financial gain can result in financial freedom or financial ruin. Without even putting much thought, this is one vehicle that has created more millionaires – multi millionaires - than any other form of investments but has also created more bankrupts than all other investment choices.
Only 2 vehicles met the criterions in Step 2. These 2 investment vehicles are – stocks and stock options. While stocks just barely made it, stock options comfortably passed the criterions with ease.
Using the stock market for financial gain can result in financial freedom or financial ruin. Without even putting much thought, this is one vehicle that has created more millionaires – multi millionaires - than any other form of investments but has also created more bankrupts than all other investment choices. Of all the market exchanges, including commodities, equities, and currencies, the options market has the greatest potential for unbridled profits because it provides leverage that no other market provides. In most cases, leverage is a double edged sword and is normally associated with some kind of borrowing. Leverage magnifies gains but also losses. In the Stock Options Market, leverage is there for all to use – it magnifies gains but limit losses as there is no borrowing involved.
While the Options Market provides excellent leverage on investment, it remains as the market with the highest chance of losing money for the naïve investor as it is one of the most complex markets – making stock trading child’s play. Almost 85% of options traders lose their investments in the options market. Despite the dangers, options are excellent investment vehicle. Just like fire, it can provide everyone a comfortable life, if used correctly, or it can destroy and kill, if used recklessly. The key is to know how to use it to your advantage.
The uncertainty of options trading is something we could all do without, but it's a necessary part of the game. The trick is to devise a business strategy where profitable investments are made consistently and replicated month after month. After all, the most successful businesses in the world, replicates their business models for years. If you care about your financial future and realistically expect achieve your goals, you must have the patience to follow through on a working system – for now and for the future. Find a business strategy that works and religiously stick to it.
Now that we have a clear picture, let’s move forward. Tomorrow is the day where we will set up our business.
Keep a look out for STEP 4: The Business Setup
7 Simple Steps to Financial Freedom and Wealth Building - Step 5
Today, we move forward to understanding the business of Options Trading. Just like when we get into any new business, we have to equip ourselves with knowledge of the business. Many amateur traders pay the ultimate price by “messing” with their hard earned risk capital and end up losing all their money.
Generate Consistent Stock Market Profit Through Credit Spread Writing
Many traders and investors dream about making consistent profit on the stock market. Typically, investors would turn to fundamental analysis for medium to long term capital gains while traders would try to time the market using technical analysis to spot reversals or advantageous entry point and exit with the first sign of trouble.
7 Simples Steps to Financial Freedom and Wealth Building - Step 2
Do you want to achieve financial freedom? For most people, this is constantly on their mind. If you are reading CashFlow Avenue’s 7 Simple Steps to Financial Freedom and Wealth Building, chances you are looking for ways to get out of the rat race and to achieve financial freedom. Unfortunately, it isn't always as easy as it sounds.
