Sabtu, 12 Januari 2013

The Amazing Worlds of Options !



Have you ever heard of options trading? Most people who have heard about options, would have been told that it is an extremely risky financial instrument. 


I have covered some of the most powerful strategies used by professional stock investors. Value stocks return an average of 15-25% annually as well as momentum stocks that give huge returns over a much shorter period of time. 

Is it possible to achieve even higher rates of return and at the same time lower our risk even further? 

The answer is YES, and it can be achieved by using the power of Stock Options (which we will just refer to as 'Options'). 

Indeed, when I first heard about people trading options a couple of years ago, I immediately had a negative perception that it was a highly risky and speculative tool that was to be avoided by any serious investor. 

However, when I started to notice first hand how some of my friends were making huge monthly returns on their money with Options, I got really curious and decided to learn everything I could about this tool and make my own judgments!

Options Can Be Highly Risky... Yet Highly Safe
So what did I discover? 

Are options really that much riskier than trading in stocks? Well, yes and no. The truth is that for most people who are not trained properly in how to trade options, it can be EXTREMELY RISKY. 

This is because when used inappropriately, you can lose 100% of your investment or a whole lot more within a short period of time. In fact, options can expose you to unlimited risk when traded in the wrong way. 

This means that you could lose a lot more than your starting investment as compared to stocks where you can only lose whatever you have invested.

Investing in Options requires a lot more knowledge, skill and discipline as compared to investing in stocks alone. The reason why many people lose money in Options is because they lack the expertise in buying the right kind of stocks (i.e. value or momentum style) and are totally ignorant of the true value of the
stocks on which the options are written. 

This is the ultimate recipe for disaster. That is why any investor has to  ensure that he/she has a really strong grounding in stocks, before being introduced  to the amazing world of Options. 

Warren Buffet : Secret Recipe for Wealh



A question most investors ask is? How do I pick individual stocks that will outperform the market to achieve the highest returns?

The answer to this question is through applying a strategy called value investing. Value Investing is a strategy employed by the world's greatest investor and also the second richest man in the world and this man is none other than Warren Buffett.


Buffet's ability to make money in the markets inspired many around the world through a book written about him in 1993. What is amazing about Buffet is that he made all his money without selling a single product or service. His worth of US $42 billion (just US$4 billion behind Bill Gates), was made purely through investing in stocks.

Although studying Buffett's methods gave me my initial inspiration, you will find that the value investing strategies that I am going to reveal to you here go way beyond Buffett's original investment criteria. 

By adding in additional insights and techniques that I learnt from other experts, I have found that I can in fact make higher returns within an even shorter period of time! 

Many books have been written about Buffet where he reveals his secrets and strategies for finding stocks that will consistently beat the market over time. 

It was through modeling Buffett's mindset and strategies that I developed my own strategy for 'Value Investing'. I have found that with Value Investing, you can expect to achieve compounded annual
returns of 15%-25%. At this rate, your money would be doubling every three to four years. 

Master the technique of value investing and you will be on your way to achieving the highest and best returns on your stocks.