Showing posts with label increase wealth. Show all posts
Showing posts with label increase wealth. Show all posts

16 October 2017

How to Increase Wealth Using What Options?

Leave a Comment

How to Increase Wealth Using What Options?

With a unique Iron Condor option method used properly, you can gain wealth or increase your monthly income or both. So then the thought becomes - which options are the best for this method
There are MANY options. Some are very short term - 1 week and some are VERY long term - a year or more, called LEAPS. There are options on stocks, futures and stock indices. But all options EXPIRE; it's the expiration time period that varies!
One of the critical characteristics of options is that its time value rapidly gets smaller as it gets closer to expiration. And it decreases greatly in value during the month before it expires.
You can either SELL or BUY options. When you are buying an option you are predicting the market to move in a particular direction so you can make a huge profit. Buying an option is driven by our greed emotion and you lose more times than you win. When you are selling options you get a fixed premium if the market doesn't move past your strike price at expiration. Which option to choose to sell depends on your risk aversion?
With the Iron Condor strategy that I recommend you are SELLING both PUT and CALL options for a premium. So the less the time period is, the greater the probability that you will be able to earn the premium. BUT unfortunately, the shorter the time period is, the lower the premium. The option time period you utilize is a function of how risk averse you are vs. the premium you can generate.
Once you decide which time period to use, the question becomes - what option. If one uses an option on stocks, he is bottled in by 2 concerns: one - if he sells an option during the earnings period, the price of the stock can swing wildly and cause him to lose money and two, if an analyst comes out with either a strong negative or positive opinion, the stock can again swing wildly and again cause you to lose money!
If you utilize an Index option like the Dow Jones or the S&P, you will not have to be concerned about earnings or analyst projections for a company.
My preference is the options on the Russell 2000 (RUT) because they exhibit more volatility than those on the Dow and S&P or OEX Indices. The greater the volatility is, the more premium you receive.
With my Iron Condor method because all options rapidly lose their value in the last month, I sell the Iron Condor when there no more than 30 calendar days before the options expire. With this strategy, I earn an average of 10%/month.
With 10%/month gain you will slowly, but surely get wealthy or have a consistent supplemental income. With 10%/month profit and starting with just $3,500, in only 60 months you will be a millionaire. You can check this out by using the Compound Interest Calculator.
Read More

21 September 2017

How Does The Little Guy Increase Wealth Or Become Wealthy?

Leave a Comment

How Does The Little Guy Increase Wealth Or Become Wealthy?

How can a regular human being increase monthly income or become rich? Is it conceivable? You've have been told stories pertaining to how people became affluent by investing in real property or sizable profits in the stock or commodity market, etc. BUT these are the exception, And Not the rule. Can sometimes the 'Little Guy' end up wealthy? DEFINITELY - if these individuals recognize how!
Thousands of individuals are wanting information about the same exact question in numerous differing ways which includes, exactly how to greatly enhance income, or add to retirement money, or retirement investing, or just how to end up wealthy, etc. But are there strategies to amplify your month-to-month proceeds and end up abundant? And, there is genuinely 1 method I will write about subsequently.......... But some background knowledge before anything else.
More and more women and men read through investment publications or have a Financial Counselor - and they all provide the exact same useless Wall Street suggestions. I know - I experimented with being a Financial Counsellor for a well-known company. I became discouraged and left when the company kept pushing various kinds of mutual funds that provided that company a large commission. Whenever I complained to my leader about the bad results of the mutual funds we all were selling, he said to me that was not my issue. Well it was - I wouldn't be able to in good faith press my clienteles to buy big commission mutual funds that had a bad performance track record. So I quit.
If you were definitely putting money in the market for the previous decade, you are in all likelihood in a loss position. But Wall Street and the financing advisors routinely keep advising you to hold on. Not surprisingly it doesn't worry them if you are losing money - it's not their bucks. Assuming that they always keep getting their transaction fee, they are extremely pleased! These people have no idea of specifically how to invest or exactly how to get wealthy - only how to recieve your commission bucks. What you Need To stamp on your brain is that they will not care if you get wealthy or make a profit. They solely care about getting your personal cash!
A few years ago I grew enormously tired and disappointed with hoping to generate monthly revenue stream and create prosperity by implementing Wall Street advice and/or system sellers' so-call trading systems. I got fed up with the gut wrenching sensation during the time the market wouldn't proceed in the way I planned and I was losing money. And then trying to find out if I preferably should exit my position or wait. Much more often than not, I stayed in my position very long and lost substantial bucks.
Fortuitously, one day the light went on - NOBODY is informed about which direction the market might go!!! These people pompously affirm they do or their program does, but it doesn't. When they speak about the extensive gains, they don't explain to you that it almost never transpires and you will have a good many more losses than gains!!! Basically because their recommendations or program does not get the job done, these individuals give you no money back guarantee or at most merely 1 month. You cannot authenticate any trading system in one month; you need at the very minimum 90 days.
So at that point it hit me, instead of needing to forecast the movement of the market, sell to the many people who think they know the market movement.
As humankind when we invest or trade, we are influenced by 2 emotions - FEAR AND GREED. These 2 extremely strong sensations influence us to make adverse moves and burn bucks! So to invest WISELY you must grasp the following:
' No one knows which direction the market will definitely go,
' Having the get-rich-quick reckoning will just instigate you to lose money,
' You will just blow your personal money going to considerable cost investment/trading workshops,
' There isn't a trading mechanism or program that will regularly generate you money, and
' You NEED hold your FEAR and GREED reactions under control.
Stock market options will allow you to earn funds if the market goes down (PUTS) or if the market moves up (CALLS). You are unable to do that with stocks. No one knows which direction the market will take or when it will go in a particular direction. So to generate a persistent gain every month, SELL to the women and men who think they are aware of which direction the market will move and the time it will move!
The optimal option methods, if employed in the correct way, are the CALL Credit Spread, the PUT Credit Spread, and the Iron Condor. If you spend some time to examine the stock market fluctuations over the last twenty five years and understand the 3 mentioned above option procedures, you can quickly average 10% month to month gain!!! If you suffer from the get-rich-quick thinking, 10%/month will likely not come across as like a great deal. BUT starting with $three thousand five hundred and generating ten% once a month, in just 5 years you will be a millionaire!!! If you are wishing to make a bundle overnight, you would be best off purchasing a lottery ticket.
Read More