I have found that there are options strategies that anyone can use and make money almost 100% of the time. I've started using just one of them so that I can support my family on a small amount of money and I find myself very much wanting to share the opportunity with people by steering them toward the same knowledge. Yet I find very few people truly interested in the way to make money while at the same time complaining that they can't find a way to.
2007-10-11 05:30:47 · 4 answers · asked by Mary T 2 in Business & Finance ➔ Investing
Dr. Deth - I can assure you that I do have a profit almost 100% of the time. As a matter of fact, since I began using my current investment strategy, I have had only one position that ended up being a losing position. And I am still learning! The longer I work at it, the better I am getting. That is one of the reasons I am so excited about it and also why I am frustrated when others don't see how easy it is and want to do it themselves.
As an example of how well this works, this morning I made a 3% return. Last Friday, it was about 15%. These are only the last two and each took me about two hours from the time I entered the trade to the time I exited.
I guess I can relate to some skepticism. I still don't believe most of the investment infomercials either. lol
2007-10-11 07:34:04 · update #1
Wow! The market just made a crazy drop and my investment that I made 3% today on is now up 17%!!!!!
2007-10-11 08:19:12 · update #2
Thank you for the reply, zman, but I think you misunderstand the nature of what I do. Briefly, I have found a very profitable way to do stradles. That way, I make money whether the stock goes up or down. I never risk more than 1/3 of my risk capital and the return has been a minimum of 3% per day, which equates to 1% return minimum on that capital. This strategy has been used for quite a bit longer than two years and the returns from any "black swan" event would be like winning the lottery. That is a new term that I'd never heard of before so I appreciate the input!
I do feel as you do - that anyone trading options should thoroughly learn about them before putting any money on them.
2007-10-11 18:09:18 · update #3
Because for most people, they're not. Most people don't want to bother to get educated on options and how they work. They prefer to trade like amateurs, looking for cheap trades that will hopefully make them a fast buck, or worse, selling naked options while having no clue why they did or how to manage their positions.
If you've found something that works for you, great.
2007-10-11 05:48:16 · answer #1 · answered by andrewtrades 2 · 2⤊ 0⤋
Mary,
I believe you very easily could have found an option strategy that makes money almost 100% of the time. I have seen many others before who have --- for relatively short periods of time, usually less than two years.
I watched one person make roughly $500,000 over 18 months trading options. Using the same strategy, he lost about $750,000 the following month.
Quite a few people use options to protect themselves from "black swan" events, and if you take the other side of those trades you will almost always make money. However, when such an event occurs you will have massive losses.
To stay in the options business you have to know how to manage your risk. Few people who make money almost 100% of the time know the amount of risk they are exposing themselves to. Most will learn the hard way.
2007-10-11 19:55:14 · answer #2 · answered by zman492 7 · 0⤊ 0⤋
Buying low and selling high is easy to understand.
Buying and selling the option to buy or sell something in the future can be very confusing. I know it confuses me!
I stick to buying and selling things I can understand and make money.
2007-10-11 12:40:38 · answer #3 · answered by paintingj 7 · 1⤊ 0⤋
they are almost as risky as buying individual stocks - there's no way anyone makes money "almost 100%" of the time when dealing in investments
2007-10-11 13:18:05 · answer #4 · answered by Anonymous · 2⤊ 1⤋