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Cash Flow From The Stock Market?
If you are wondering how to invest in stocks, there are no quick easy answers other than buy low sell high, or if you’re shorting a stock, sell high buy back lower!
Are you SICK of losing in the stock Market or just barely breaking even?
Probably the first thing somebody should do is go get some education on how to invest in stocks.
As if you do it without education and you do well, you will probably just break even or loose a little. Ask me how I know this, better yet ask any competent accountant who has a large client base and they will probably tell you that less than 1% of their clients actually make money in the stock market.
Heaven forbid that you Day trade!
As the odds are really against those guys. I think the statistic is almost all Day traders are out of Day trading within 12 months of starting, because they don’t make ANY money!
You ask why is that? The simple answer is they never got any education on stock trading, or Stock Option Trading.
Even if they do get some Stock or Option trading you need to examine the source where the information is coming from.
Most people, getting some education, just sign up for any Stock or option course over the internet or at their local hotel in their city. Trust me I did all of this stuff as well learning ALL of the above the hard way.
My current and only recommendation is to get your training from somebody who has traded in the markets professionally. I know this is going to be difficult as most of these individuals do not offer training at any price let alone one on one.
I was fortunate enough to learn, part of my training, from a former CBOE (Chicago Board of Options Exchange) floor trader who use to trade on the floor of the CBOE, fortunately he was willing to share some of his strategies with me who got me interested in the Stock option side of the business.
I am sure you are saying, but Charlie, aren’t stock options risky? Well the answer is yes and no, in most cases they are not if you are trained properly and you understand your risks up front.
You also need to learn the concept called position sizing, as if you put to much on a position and that position doesn’t go your way, now you have to make back 50% more than you lost, just to stay even! So you never want to risk, more that 10% of your portfolio on one position/trade!
Most people who trade stocks take on far more risk than I do with Stock Options.
I will also tell you I do not buy Stock Options instead I sell options and collect on Theta decay. So, what on earth is Theta decay?
Theta Decay in a nutshell, is, every Stock Option has a limited lifespan which in simple terms is time. In the Stock Options world Time=Theta so more or less time translates into the phrase Theta, and since it is becoming smaller each day, we call it Theta decay.
So more or less we sell time premium each time we sell an option Thus we are wanting Theta decay.
Anybody with real knowledge about making money in the stock market, this is the only way they trade, with Theta decay.
Such as former CBOE floor traders (also known as market makers) as it is far easier to control your risk this way!
This is far easier to do then to count on a stock or the market going up or down.
Remember what i said about those who really make money trading in the stock market is about 1%?
You always have to be right.
Otherwise you are losing.
With Theta trading you don’t always have to be right with the stock or market direction, as time decay is always on your side.
That is your way to profit from the stock market!
Ok, that's great then how do I learn what you have just explained?
I don’t know any market makers of former CBOE floor traders.
This poses an interesting situation so how is anybody suppose to learn this any of this if it isn’t taught and you don’t know anybody in the business?
Fortunately I have found a man, Dave who was my mentor and shared all of this knowledge and he is as close as you will probably find to being a floor trader/Market Maker, who is willing to share.
This is all of the ins and outs of the Stock market and how to trade both stocks and options.
To Get more information on how I pull cash out of the Stock Market each month Click Here