Options as a Strategic Investment » strategy

The Options Trading Strategy of a Lifetime [Hardcover]

admin — Sat, 31 Jul 2010 21:50:46 +0000

No description for this product could be found, but have a look over at Amazon for reviews and other information.

Strategise Your Investments in Stock Market

admin — Tue, 05 Jan 2010 11:21:13 +0000

Stock markets have always been elusive to the common mans’ dream of earning quick bucks. They are like a child’s play ground requiring courage, zeal to excel and being a step forward than your competitor. However discipline is paramount and synonymous to success. A disciplined investor knows how to limit losses and maximise profits.

The ingredients of success in a stock market are very basic namely surplus money, risk appetite, intuitive skills, rational approach and a flexible strategy.

Anyone can earn money if he can predict the trend and take a position accordingly. However, the art of trading or investing may not come naturally to one. We need to practice in order to develop the art. We need to be chivalrous, understand the market makers psychology and out-smart him.

Asset Allocation: implies balancing your exposure in various asset classes of Equity and Derivatives. One may invest 80% of their portfolio’s worth in Equity and the remaining 20% in Options (Derivatives). As the risk appetite increases and the understanding of market dynamics unfolds, the % of asset allocation may be tilted but not beyond 60% equity and 40 % Derivatives.

To elaborate more on the Strategic part of investments I shall quote an example.

Nifty50 is composed of stocks of top 50 most reliable and consistent Blue chip companies of India. Nifty50 is a diversified index and thus has companies from different sectors like FMCG, Oil & Gas, Metal, Realty, Bank etc. The fluctuations in the index may be because of Market news, Sector specific news, Stock Specific news. One sector may go up leading the Nifty50 index higher whereas some other sector may pull the index down. Herein you may have the following kinds of trading strategies.

The profits earned should be reinvested suitably to maintain the asset allocation ratio. Always remember that ‘Discipline’ is synonymous to success in the Stock Market. For any queries please email to Abhinav5884@yahoo.co.in

The above article is a brief for people who understand the terminologies of stock market.

Day Trading–Gambling or Investing?

admin — Sat, 26 Dec 2009 11:18:36 +0000

Day trading is commonly defined as the rapid buying and selling of securities with the objective of making small gains with each trade that add up to much higher annualized returns than would be realized with a buy-and-hold strategy. This of course assumes that the trader has superior information and tools that will enable him to win more times than lose.

The information and tools that are easily available nowadays via the latest technology are definitely excellent and only a few years ago would only be available to well-funded trading houses on Wall Street. No doubt, the availability of these systems has contributed to the popularity of the day trading phenomenon and it seems that anyone with a computer and a few dollars is able to participate.

It is well to realize here that with all of their enormous resources, even the top Wall Street traders work with odds that are only slightly better than those found at Las Vegas roulette tables and they use sophisticated hedging techniques to control their risk of catastrophic loss. Even with these resources at their disposal, no Wall Street trader has managed to consistently make winning trades over the long term.

For the private individual, these are daunting odds. There is almost no chance at all for him to win consistently enough to make this a viable investment strategy. He simply does not have the resources in psychological training, information systems, options strategies, trade pricing and execution to compete with the guy in a full blown trading house. The chances that he will win enough times to make a better profit than a buy-and-hold strategy is next to nil over even a 3-to-5 year term In fact, the likelihood is that he will lose a large amount of money before he quits. Yet there are droves of confident, self-styled day traders coming into the market every day with the hopes of making a living doing this!

A large part of the problem is that this is a very lucrative industry and the providers of trading systems and resources actively encourage and feed the fantasy. They present day trading in the media as an easy, viable and respectable investment strategy with many successful practitioners who are ordinary Joes from Main Street just like themselves. Unfortunately, the media appears to be a willing partner in this enterprise and to me at least, this is an inexcusable outrage that leaves one wondering where the consumer advocates are when you need them.

A Trading Strategy That Consistently Beats All Major Indexes

admin — Mon, 21 Dec 2009 23:15:59 +0000

Are you looking to outperform the market and optimize your profits but are not sure how to pick the right stocks? Has investing become a chore? Do you find yourself investing in hot stocks after they have made their big move? Would you like to learn how I increased my portfolio by over 400% in under 7 years? Do you want to discover how I have outperformed the market over the past 3 years by a margin of 5 to 1?

Do You Hate Research? . . . I do!

I have always wanted to find an investment strategy that made sense. An investment strategy in which I do not need to know the intricacies of the market, predict market trends or follow specific stocks. How can I get the inside information of what is hot before the rest of the market knows? I can’t. Nor do I need to.

Plus, I don’t have that kind of time to commit to in-depth research. Like you, I have a regular job that I need to devote my time to. I am not a day trader; nor do I want to spend all of my free time on the computer doing research. Always following the stock market and getting stock quotes is not how I want to spend my free time.

I Avoid Individual Stocks . . . they are too unreliable!

Everybody wants to buy low and sell high. While millions of people do make money this way (and many millions loose money), I have found an easier and more effective way to use the market to my advantage. I do not trade in stocks. I do what I can to avoid individual stocks. And I consistently beat the market . . . month after month after month.

If not stocks, what’s the alternative?

Like many people, I got heavily involved in the stock market in the mid to late Nineties. Tech stocks were going through the roof and I, like everybody else, wanted a part of the action. It seemed an easy way to make money. Everybody was getting rich. You did not need a special investment strategy to beat the market.

During this time, I engrossed myself in the financial markets. I wanted to learn as much as I could without giving up my day job. I was trying to find the next best tech stock, IPOs and the occasional pre-IPO offering. But it was not until I discovered options trading that I discovered an investment strategy (The Yager Trading Strategy) that can work in any kind of market . . . Bull, Bear or stagnant.

That’s right…OPTION trading!

And I am not talking about stock options or writing covered calls. Options trading…I started selling options on S&P futures, using different methods and trading strategies. And I did well. VERY well.

Between July 1998 and January 2000 (a span of 18 months), from my option trading system, I turned an initial $25,000 investment into $167,615. That’s over 670% increase. And this was not paper money where you buy a stock and it has a certain listed value. This was real, taxed income. Profits collected on a monthly basis.

Market fluctuations and volatility have diminished greatly since then…reducing the premiums. Those types of returns are no longer available, but the option trading strategy is still very sound. I still consistently beat the market. Even the years the DJIA, Nasdaq and S&P were all down, I posted more than a 22% gain.

Learn the option trading strategy or see how to make money with this strategy. I describe the strategy and show actual recent trades on www.yagerinvesting.com. The information is FREE. No subscription required. This is a method for risk capital only.

For the preceding 12 months (May ‘06 through April ‘07) this is how my strategy, The Yager Trading Strategy, performed:

DJIA……………………..20.3%

NASDAQ………………..14.7%

S & P 500………………..17.3%

Yager Trading Strategy….32.2%

Learn the strategy for FREE.

http://www.yagerinvesting.com

adam@yagerinvesting.com

Finding An Investing Strategy That Suits Your Needs

admin — Sun, 29 Nov 2009 01:20:37 +0000

Choosing an investing strategy can be one of the hardest things an investor does. Many investors also change their investing strategy from time to time depending on market conditions and other contributing factors. An investing strategy should accurately reflect your investing goals, your available funds, and your personal investing style. There are three basic investing strategies and each has hundreds, if not thousands of variations.
A conservative investing strategy is perfect for investors who are afraid of taking risk and losing money. A conservative strategy may involve investing in certificates of deposit, money markets, bonds, and possibly certain mutual funds, such as bond funds. Conservative investing doesn’t have as much potential for high returns as the other two strategies, but you aren’t as likely to lose much principal (your invested money) due to price variations.
A moderate investing strategy offers generally higher returns than a conservative strategy, but is less risky than an aggressive approach. A moderate strategy can include a mix of mutual funds, or a mix of individual stocks, bonds, and a money market. If you choose the individual securities route, a good moderate investment mix could be 5-10% money market, 30-50% stocks, and 30-50% bonds. A moderate investor can rest assured that he or she has good earning potential without a huge risk.
The last of the three basic investing strategies is the aggressive strategy. An aggressive strategy has potential for extremely high returns, depending on the market’s performance. An aggressive strategy also involves a significant amount of risk. An investor is more likely to lose principal when using an aggressive strategy. An aggressive strategy will most likely include 70-80% stocks, 20-30% bonds, and probably very little notable money market or cash reserves. Although 70/30 and 80/20 is very risky, some investors would say this split is only moderately aggressive. A very aggressive portfolio may include 90% or more stocks.
When choosing an investment strategy you should determine three very important things: how much risk you willing to take, how much earning potential you want, and how concerned you are with losing principal. Once you’ve made a firm determination of these three things, you can choose an investing strategy that meets those needs.
Another option is simply to educate yourself in a wealth education area. Many people want the quick money and find that the real fast money is in longer term education towards wealth.