Pssst… Have you HEARD? No Kidnapping Necessary…

March 15th, 2009

You might not hear about it much, but there are people out
there… marketers… who are very quietly making seven figure
incomes as affiliates.

You’ll never be told the names of most of these affiliates. They
don’t do seminars, they don’t write ebooks, and they don’t teach
anyone how to do what they do…

…they just quietly go about their business of sucking cash off
the Internet with a giant King-Kong sized vacuum.

Now, if you’re like me, you want to know what they know.

You want to suck cash off the Internet like a giant Hoover, too.

So how do we find out what they know?

Kidnap one of them!

Hold him hostage ’till he tells us EVERYTHING.

If he won’t speak, torture him with rap music and force feed him
fast food till he bursts.

;-)

Okay, the jail time might not be too fun.

So, here’s another idea…

We’ll CLONE him.

We’ll make an exact copy of his brain, and then we’ll be able to
earn six or seven figures with affiliate marketing, too!

Sound nuts?

:-)

Not as nuts as you think…

There is a guy named Chris who is making SEVEN figures with
affiliate marketing and Adwords right now.

And he’s hired a software team to duplicate the process he uses
to make this income.

His software does what he does, automatically.

It allows ordinary people to create extraordinary incomes…

…and in far less time than you and I thought possible!

==> Google Assassin

There is a catch, however.

You’ve got to be disciplined enough to follow the step-by-step
instructions.

Don’t try to “do your own thing.”

Simply do what the software tells you to do.

I know for some of us, that’s difficult.

We want to plunge in head first on a whim or hunch.

But the software is designed to hunt down REAL profit
opportunities, not whims or hunches.

When it finds one, it alerts you and THEN you jump in and profit
big time.

You don’t need to be brilliant, or even smart.

You just need to follow directions.

Now, even I can do that!
;-)

==> Google Assassin

Choose to make it an outstanding day,

- Todd

P.S. Skeptical? No worries, you get a full 56 days to decide if
what I say is true… that if you can follow directions, you can
make big money with this software.

Be sure and check out the proof on the site, too… $146,706 in
32 days.

What if you made just 1% of that to start?

And you made maybe 10% of that after a few months?

Could that be a wonderful thing?

:-)

==> Google Assassin

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Importance Of A Correct Mindset In Trading

March 14th, 2009

Having the right mindset is crucial in any kind of undertaking. And market trading is just one of the many examples of career paths where having a clear and focus state of mind can make the difference between disaster and success. Market trading is a risky business and not knowing more about the ins and outs makes success even more difficult to attain. But with the right attitude you get ahead. But what are the right attitudes in trading the market?

One of the more important tips in market trading is to keep your emotions at bay. There’s no need to be emotional in a business where facts and numbers are all that matters. For example, you need not invest on stocks or trade stocks based on personal estimations. You based your decisions on known facts and calculated projections. You don’t decide because you hope the stocks will improve or you hope your investment will be a good one. Stick with the facts.

Some will argue that instincts play a great deal in making decisions in market trading. To some extent it is indeed true. However, what will help you make the correct decisions are the instincts that you developed through your time and experience in the market. But instincts alone will not make you a great and successful trader.

If you have been experiencing a streak of good luck, it would be a good thing to learn to slow down since it is not really a good idea to keep relying on your instincts or good luck. You can become so full of your self that you began to expand and trade on higher payoffs. This of course is a very common mistake and I’m telling you now that you need to avoid these kinds of decisions. Organize and develop your own set of trading rules to follow. This will allow you to step back if you find yourself in a pool of good luck and a string of successes.

Also look or cook your own recipe for success. Sure, a sound financial and educational base is needed to make a big start. Learning from others is imperative but relying on them is a mistake. And eventually, you need to accept loss. Remember that the best traders learn to lose and learn a Thoughts become actions, actions become habits and habits give you the results.
lot when they loss. Trading push you to your limit and capabilities.

Being pushed hard, traders need to maintain focus. A focus mind comes only with a clear head.

The best traders think like a winner. Thinking like a winner turns you into a winner. Identify the thoughts that you want to strengthen and focus on them regularly.

Even with pressures, you still need to go easy on yourself. There are traders who tend to be tough on themselves. A positive self-criticism is different from slapping your face too hard whenever you make mistakes. Learn from you mistakes and then let them go. Self-inflicted psychological damage is difficult to overcome, so it is best to avoid it totally.

Trading is a tough and serious business. But never be too hard on yourself. Relax. The best traders still know hot to laugh, they even laugh on themselves. Having fun and relaxing your mind also keep your mind clear and focused. Having the correct trading mindset can give you immense results and at the same time have fun while you earn your bucks. Certainly, you deserve it.

Choose to make it an outstanding day,
- Todd
http://my-wealth-coach.com

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Options Trading in a Flash-The General Concept Behind Options Trading

March 13th, 2009

Perhaps among the most complicated and maybe the riskiest type of trading is option trading. Most seasoned traders realize that option trading is not for all traders. It selects its own type of people, usually the risk takers. And the trade itself demands skills and knowledge unique only to people who won’t fold under extreme risks. Most experts recommend this type of trading only to those people who have enough risk capital as it carries with it substantial risks.

By nature, it is also speculative. So if you are a person who doesn’t want to speculate too much, you should find another type of security which will work best for you. However, rejecting the idea of entering this trade right away is as risky as not knowing anything about it. It carries with it risks, that’s true,for sure, but it is also a very rewarding venture. You might as well try to understand something on it such that you would be able to decide whether to try you luck on options trading or not.

Since it is inherently risky, option trading also puts forth advantages that may not be had with other types of trades. Some of its wonderful advantages is the flexibility it gives its investors. Each lender has the option to trade at a specific price within a specific period.

It is also, when comparing the two, a more advantageous kind of trade due to its high leverage it offers. Depending on the location, each option may encompass a number of underlying assets. In the United States, for example, each option may represent for 100 underlying assets. Thus, this principle lends the holder the ability to profit from several assets within a single option.

So what is an option?

An option is a kind of security, perhaps closely comparable to bonds and stocks. It is, in itself, a binding contract, that is monitored by and through strict terms and conditions. Basically, options are contracts that owners could buy or sell at a specific price before or on a certain date. An option is usually an additional price tag to a certain asset or item because it is a reservation for the purchase or sale of a specific asset.

Options are also occasionally called derivatives. This is because the value of an option is derived from the value of the underlying asset.

To give light on this topic, consider the example below:

Say you have considered purchasing a real estate property which is worth several hundred thousand dollars. However, when you originally negotiated with the owner, you did not have sufficient money to buy the property right there and then. So you made a deal with the owner to pay an additional $5, 000 to reserve the deal for you for the duration of two months. The extra money you shelled out is referred to as the options.  In case you don’t want to continue with the sale, the owner of the real estate is not allowed to force you to purchase the property nor can the law impose the sale on you. However, you would still have to pay the price of the option.

In summary, when considering buying a property with an enclosed option, you will have the right to pursue with the sale or to discontinue the sale. You are not mandated to do either of the two. But be aware, you may lose 100% of your total investment in options trading which is the value of the option itself.

Choose to make it an outstanding day,

- Todd

http://my-wealth-coach.com

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You Can’t Stop It, Even If You Want To…

March 13th, 2009

Would you believe…

…A system that sends you non-stop cash, even if you don’t want
it to?

When I was a kid, computers were great big things hidden deep in
the recesses of large corporations.

Whenever there was any kind of error, employees always blamed the
computer.

“It’s a computer error, so sorry, we’ll get it fixed!”

One time I heard of a guy getting a check from his phone company
for $1000, a huge sum of money to a kid.

He wasn’t owed this money, and when he contacted the company
about it, they said they would fix it.

So they sent him another check…

…and another check…

…and another check…

This went on everyday for two months before it finally stopped.

WOW! I was so excited!

Maybe some big company would start sending ME big checks for no
reason!

;-)

I checked the mailbox everyday for months after hearing about
that guy.

No, I never did receive those fre^ebie checks from the big
computer in the company basement.

But that didn’t stop me from dreaming. :-)

I forgot all about that guy and his non-stop checks until today,
when I visited Ewen Chia’s site.

Check out his headline…

“The Turnkey Money Machine That Prints Non-Stop Profits For You
Automatically, The Lazy Way…”

“Once You Turn On This Plug-And-Play In-A-Box Money System, It
Can’t Stop Sending You Cash…Even If You Want It To.”

:-) )

The stuff of fantasy, right?

But then he goes on to show proof.

Really BIG proof.

This is no computer error.

Ewen really is making this kind of money.

He spends minutes per day on his system.

Minutes!

And he’s making money hand over fist, as we used to say.

To top it all off, he says it’s so easy, a MONKEY could do it.

Well, I’m not sure about the monkey. But I guarantee you and I
can do it.

Imagine a system that makes you money day in and day out. Real
money, that you get to keep.

Here are the details of Ewen’s system…

==> AutoPilot Profits
If you think it sounds to good to be true, wait till you see the
price. You might faint.

It’s that LOW.

And with an 8 week guarantee, you’ve got plenty of time to figure
out if it’ll work for you (hint: it will :-)

==> AutoPilot Profits

Choose to make it an outstanding day,

- Todd

P.S. That guy who was getting all the checks when I was a kid
went to town once a week to try to give them back.

They wouldn’t take them!

Finally, when the phone company got their “computer” straightened
out, they knocked on the guy’s door and demanded he return all
the checks.

I always thought he should of hidden in the dark recesses of HIS
house, but he was honest and gave all the checks back…

…except one.

He said that was for his trouble. :-)

With Ewen’s program, no one will be knocking on your door.

It’s 100% legitimate, legal and honest.

And your earnings can make those $1000 checks look like chump
change.

==> AutoPilot Profits

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Anti-Recession Tips For Effectively Shoring Up Your Portfolio

March 11th, 2009

The economy can be hard on your portfolio.  This has happened before and it could happen again.  Now that we’re officially in a recession, what better time to pump up your resources and shore up your portfolio than to make it recession-proof now or at least weather the tough economic times?  Here are some anti-recession tips you might want to consider:

Aim for quality.

If there’s one thing that markets abhor, it’s uncertainty.  This is especially prevalent in the way investors behave when faced with companies that produce predictable figures.  This is also the reason why investors are loathed to take chances on companies that don’t perform as expected.  These companies are usually the small ones, ones that need investors’ faith the most.

To start shoring up your portfolio, try to avoid companies that will rely heavily on you, the investor.  It will be easier for you (and safer for your investment) to rely on companies that more or less show predictable growth because this points to better earning quality.  Opt for these companies instead – these are usually large firms, big players in an industry that have proven staying power regardless of the economy and have plenty of money to continue to run, do business, pay debtors, produce and make their investors happy.

Invest in health care.

Take your pick: drugs, medicines and pharmaceuticals or health services.  Whichever way you go, you have a better means of shoring up your portfolio if you put your faith on this sector that continues to enjoy a healthy performance.

And it shouldn’t surprise you one bit: what the health care industry can offer is a staple among consumers – good health and a means to cure.  Unless someone comes up with a miracle cure soon, the health care industry will continue to thrive.  Until then, this is one more segment of the market that you might consider putting your faith on.

And yes… the fact that certain segments such as pharmaceuticals pay a lot in terms of dividends doesn’t hurt.

Stick where the crowds are.

By crowds, we mean consumers.  Consumers are the lifeblood of economies.  Without their support and willingness to spend, economies can crash and burn so easily.  As an investor looking to shore up your portfolio, here’s an anti-recession tip for you: invest where consumers bloom.

This means putting your money on industries that cater to the most basic of consumer needs, such as food and beverages, personal care and household needs.  Other than the fact that consumers have been proven to continue spending for basics even during a bad economy, these industries have also performed well during less-than-ideal economic times in the past.  You’re less likely to experience disappointment if you go where consumers go.

Diversify.

Recession always brings out the worst – and best – in people, especially investors.  Which way you wish to take is really up to you.  However, wouldn’t it be better to view the recession as an opportunity to find other means to make money?

If you want to shore up your portfolio and avoid the negative effects of a recession, consider diversifying.  But do so only by carefully considering the pros and cons of the industries that you wish to invest in.  Focus on industries that have behaved so well under pressure, particularly those that continue to stay steady even during a recession.

Choose to make it an outstanding day,

- Todd

http://my-wealth-coach.com

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Discover the Stock Investing Strategy That Allows You to Buy Low & Sell High Again & Again & Again

March 10th, 2009

Stock investing can be as simple or as complex as you want it to be.

There are many stock investment strategies out there – many that are extremely complex and just as many that are so simple even a fourth-grader could use them.

But it seems that investors today are too often made to believe that stock investing must be complex and must take a tremendous amount of hard work and research if you really want to make big profits.

But the truth is many of the simplest stock investment strategies work just as well or better than many of the complex stock investing strategies.

For example, there is a little-known, yet highly effective stock investment strategy that is extremely easy to use – in fact,  this stock investment strategy even goes so far as to tell the investor at what price he should buy and at what price he should sell!

That’s right, this stock investment strategy actually eliminates one of the biggest roadblocks to stock investing success that exists – and that is the guesswork/uncertainty that surrounds the buying and selling decisions stock market investors must make.

So let me ask you, are you growing frustrated watching your mutual funds make tediously slow incremental gains?

Or are you tired of making small stock investing gains one month only to give them, and more, back in losses the following month?

If so, then channeling stocks may be the perfect stock investment strategy for you.

What is channeling stocks?

It is a stock investing technique that is extremely accurate and reliable and which provides investors with exact entry and exit points for their trades.

Here’s how channeling stocks works:

The channeling stocks investment strategy relies on the market’s natural tendency to “trend.”  You see, there are some stocks that will trade within a certain range between high and low price points for a period of time and during this time they become highly predictable.

These stocks, which repeatedly move up and down in waves between the two parallel price point lines, are said to be “channeling.”

The upper trend line, or high price point, acts as resistance, and the lower trend line, or low price point, acts as support.

The area between the two trend lines is the “channel.” There are basically three types of channels:

  • An ascending or a rising channel that makes consecutive higher highs and higher lows.
  • A descending or falling channel that makes consecutive lower highs and lower lows.
  • A horizontal channel or a rectangular channel that makes horizontal highs and lows.

Any of the above channels are considered “trade-able” if they consist of at least two lows and two highs. There are three ways to trade channeling stocks:

  1. You can trade in the direction of a channel. Here you would take a long position in an ascending channel and you would ride the price upward until the support line of the channel is broken. An alternative approach would be to take a short position in a descending channel, selling once the price has broken through the resistance line.
  2. You can trade within a channel. Here you would take a long position as the stock price bounces off the support line and you would sell when the price draws close to the resistance line. An alternative approach would be to take a short position in a stock as it bounces off the resistance line and you would cover when it draws close to the support line.
  3. You can trade channel breakouts. With this approach, you don’t have an automatic exit point. Longs are entered when a stock’s price breaks through a resistance line and shorts are entered when a stock’s price breaks through the support line.

One of the biggest benefits of using either or both of the first two trading approaches mentioned above is that you will have precise entry and exit points.

I’m sure I don’t have to tell you that greed and fear are two of an investor’s worst enemies and to be truly successful in the stock market you need to be able to keep your emotions out of it.

These approaches help investors do just that by giving them strict buy and sell signals to follow.

Investing in channeling stocks is also a great way to reduce the risk often associated with stock investing.

With channeling stocks, you’ll know going in at what price you should buy and at what price you should sell, eliminating the often costly mistake so many investors make of holding onto a stock for too long.

In fact, the channeling stocks strategy is a stock investment strategy anyone can use to start immediately booking long and short-term profits while minimizing risk and preserving capital – even if they have no investing experience whatsoever!

To learn more about channeling stocks and the profits that can be made from using this stock investment technique, please visit: Stock Killer

- Coach

http://my-wealth-coach.com

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Trading Indicators-Too Much Is Not a Good Thing

March 9th, 2009

There are literally hundreds of technical indicators out there and thousands of technical indicators combinations that can be used. But the problem lies on the premise. Since there are lots of technical indicators available at your disposal, you risk yourself of having too much of everything which can lead you with mastering nothing. This begs the question: “can you use too many technical indicators?”

Probably, you have asked the same question too and are trying to find the Holy Grail of combinations that will catapult you to immortality, at least in the trading world. You may test several technical indicators or technical indicators combinations that are suggested by some writings on the internet. But the thing is, there is no single technical indicator combination that is 100% successful. Because if there is, everyone will be using it and everyone will be rich right now. Right?

I am not saying, however, that the internet cannot give you something you can use or the internet is just a virtual world full of crap in terms of information about trading indicators. We cannot deny that the internet has given us the ease of access on several technical indicators and charts, which have made some investors knowledgeable in the field and have actually make others real fortune. What I am saying is that investors should not rely on suggested technical indicator combinations and expect to become successful. What you should do is to learn as much as you can and identify which indicators are suited to your trading style, which in turn, can yield to higher profit or positive curve in the long run.

With that said, you don’t have to use several indicators at once. Experts agree on this. Using several indicators at a time will only create confusion. It will only create conflicting information, which is not good if you want to have certainty in your decision.

A good example is using 7 indicators when deciding on your entry and exit positions. Four of them are telling you to enter a long position but 3 are indicating a future downward movement. While majority of your indicators are giving a green light, the other 3 can become a factor. Statistics may be on your side to pursue the trade but you are more likely to abandon it because you still see the risks.

It does not end there. Using multiple time frames can give you different conflicting information which can become a major factor in your decision. More likely, you end up not trading at all because you are afraid to take a position.

To become successful, you really do not have to have several indicators. This is quite ironic but the most effective indicators are those that have been around the longest. Experts suggest that you stay away from complex set-ups and stick on the basic like MACD (Moving Average Convergence/Divergence), Rate of Change (ROC), Relative Strength Index (RSI), Price and Volume Oscillator, and stochastics.

Even with these examples, you have to identify which indicators are suited to your trading style. Do not overcomplicate things. To become successful, you don’t have to constantly tryout new indicators in order to find the best combination. All you need to do is to use and master few and simple ones.

Choose to make it an outstanding day,

- Coach

http://my-wealth-coach.com

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“What Really Makes You Tick?” 10 questions you should ask to yourself: a preparation to self-improvement

March 8th, 2009

Be all you can be, but it’s not always in the Army. I often see myself as somewhat contented with my life the way things are, but of course it’s hard to think of anything else when where are real issues to be discussed.

Still I aspire for something deeper and more meaningful.

So we’re all pelted with problems. Honestly it shouldn’t even bother or even hinder us to becoming all we ought to be. Aspirations as kids should continue to live within us, even though it would be short-lived or as long as we could hold on to the dream. They say you can’t teach an old dog new tricks… or can they?

1. What do I really want?
The question of the ages. So many things you want to do with your life and so little time to even go about during the day.

Find something that you are good at can help realize that small step towards improvement. Diligence is the key to know that it is worth it.

2. Should I really change?
Today’s generation has taken another level of redefining ’self’, or at least that’s what the kids are saying. Having an army of teenage nieces and nephews has taught me that there are far worse things that they could have had than acne or maybe even promiscuity. So how does that fit into your lifestyle?

If history has taught us one thing, it’s the life that we have gone through. Try to see if partying Seventies style wouldn’t appeal to the younger generation, but dancing is part of partying. Watch them applaud after showing them how to really dance than break their bones in break-dancing.

3. What’s the bright side in all of this?
With so much is happening around us there seem to be no room for even considering that light at the end of the tunnel. We can still see it as something positive without undergoing so much scrutiny. And if it’s a train at the end of the tunnel, take it for a ride and see what makes the world go round!

4. Am I comfortable with what I’m doing?
There’s always the easy way and the right way when it comes to deciding what goes with which shoes, or purse, shirt and whatnot. It doesn’t take a genius to see yourself as someone unique, or else we’ll all be equally the same in everything we do. Variety brings in very interesting and exciting questions to be experimented.

5. Have I done enough for myself?
Have you, or is there something more you want to do? Discontentment in every aspect can be dangerous in large doses, but in small amounts you’ll be able to see and do stuff you could never imagine doing.

6. Am I happy at where I am today?
It’s an unfair question so let it be an answer! You love being a good and loving mom or dad to your kids, then take it up a notch! Your kids will love you forever. The same goes with everyday life!

7. Am I appealing to the opposite sex?
So maybe I don’t have an answer to that, but that doesn’t mean I can’t try it, though. Whether you shape-up, change the way you wear your clothes or hair, or even your attitude towards people, you should always remember it will always be for your own benefit.

8. How much could I have?
I suppose in this case there is no such things on having things too much or too little, but it’s more on how badly you really need it. I’d like to have lots of money, no denying that, but the question is that how much are you willing to work for it?

9. What motivates me?
What motivates you? It’s an answer you have to find out for yourself. There are so many things that can make everyone happy, but to choose one of the may be the hardest part. It’s not like you can’t have one serving of your favorite food in a buffet and that’s it. Just try it piece by piece.

10. What Really Makes You Tick?
So? What really makes you tick? You can be just about anything you always wanted to be, but to realize that attaining something that may seem very difficult is already giving up before you even start that journey. Always remember, that self-improvement is not just about the physical or philosophical change you have to undergo, but it’s something that you really want.

- Coach

http://my-wealth-coach.com

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Attitude And Your Trading Mindset

March 7th, 2009

Traders own their business and set its direction and as leaders they must know how to run their business which is essential to their success, frankly, attitude and your trading mindset can spell your success or failure.

Statistically, 90% of traders lose money.

The trading mindset challenge is how to face up to the challenge of making it among th 10% who make it big in trading.

One way is to understand leadership principles and see how you are applying them to your own trading business.

First, you must know why you are in the trading business, what attracted you to it, what were your motivations and will you be seriously focusing your undivided attention to making it succeed?

Many say that it is money, excitement, challenge, power and a lot of other things.
Imagine you got all of the things you wanted to get out of your trading business:

Setting your own trading mindset will help you get along the way, especially when your attitude comes into the picture.

What is your degree of discipline, how you tend to react to certain conditions and circumstances, who focused are you towards reaching your goals, do you give up easily, etc.?

Managing your energy, time and effort is one sure way to establish a habit and creating a discipline that you hope to use in shaping the path of your trading venture.

One good principle to follow is the 80/20 rule, where 20% of your efforts get 80% of your desired results.

You can focus your energy on the efforts that get you the results, or let yourself get distracted. If you allow yourself to get distracted, you are very busy, however you do not produce the result that you want in the time frame that you want.

Perception is also another useful tool in establishing the right attitude for your trading mindset.

We face challenges and difficulties throughout our trading business, but this is just a normal fact of trading.

Question is, how do you deal with these setbacks?

If you consider your losses as being the cost of doing business and an overhead for your business, then it is easier to accept the fact and move on, taking into consideration that your loss is a way for you to learn from it and avoid it from occurring another time.

It is important to realize that it is about your perception and how you view it. Losing is not an option, it is a fact of life that one has to deal with and how you perceive it whill make you reshape your path towards your trading mindset.

Of course, fear has a way of making one reluctant about a certain decision, but take advantage of the fear in making calculated risks and having other options if one trading decision does not work to your advantage.

Take ownership of your trading business, make your decisions work for you and not let others do it for you.

Trading is a stiff competitive market and a hard truth to it is that if there are winners, there definitely has to be losers, otherwise it cannot be considered a market.

Many of us put more value in others’ opinions than our own and we tend to want to be safe than sorry and if something goes wrong, we have someone else to blame, as long as it is not us.

If we follow others, we do not have to take responsibility for our results. We can blame the advice, the markets or anything else, but the sign of true leadership and the ideal trading mindset is that you should not fear mistakes, but on how to handle the consequences and eventually move on.

One of the signs of great leaders is not that they do not make mistakes. It is that they handle the consequences and move on.

Remember that the most important thing to establishing that trading mindset is not only to make decisions, but also how to live with the consequences and how to take things in stride.

Your attitude and trading mindset, if done for the right reasons, conditions and goals, will definitely spell out your advantage over others.

Choose to make it an outstanding day,

Coach

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Options Trading in a Nutshell-The General Idea Behind Options Trading

March 6th, 2009

Perhaps among the most complicated and possibly the riskiest type of trading is option trading. Most seasoned traders realize that option trading does not suit all traders. It selects its own type of people, usually the risk takers. And the trade itself requires skills and thinking unique only to people who could handle extreme risks. Most experts recommend this type of trading only to those people who have sufficient risk capital as it carries with it substantial risks.

By nature, it is also speculative. So if you are a person who doesn’t want to speculate too much, you might as well find another type of security which will work best for you. However, rejecting the idea of entering this trade right away is as risky as not knowing anything about it. It carries with it risks, that’s true, but it is also a highly profitable venture. You might as well try to learn something on it such that you could decide whether to try you luck on options trading or not.

While it is inherently risky, option trading also offers advantages that may not be had with other types of trades. Among its premium advantages is the flexibility it lends its investors. Each lender has the option to trade at a specific price within a predetermined period.

It is also, by comparison, a more advantageous type of trade because of the high leverage it offers. Depending on the location, each option may cover a number of underlying assets. In the United States, for example, each option may represent for 100 underlying assets. Thus, this principle lends the holder the capacity to profit from several assets within a single option.

So what is an option?

An option is a type of security, perhaps closely comparable to bonds and stocks. It is, in itself, a binding contract, that is monitored by and through strict terms and conditions. In gist, options are contracts that owners could buy or sell at a certain price prior to or on a specific date. An option is typically an added price tag to a certain asset or item because it is a reservation for the purchase or sale of a certain asset.

Options are also sometimes called derivatives. This is due to the fact that the value of an option is derived from the value of the underlying asset.

To give light on this topic, consider the example below:

Say you have considered buying a real estate property which is worth several hundred thousand dollars. However, when you first negotiated with the owner, you did not have sufficient money to purchase the property right there and then. So you made a deal with the owner to pay an extra $5, 000 to reserve the deal for you for the duration of two months. The extra money you put in is called the options.  In case you don’t want to pursue with the sale, the owner of the real estate can neither force you to buy the property nor can the law impose the sale on you. However, you would still have to pay the price of the option.

In summary, when considering buying a property with an enclosed option, you will have the right to pursue with the sale or to turn down the sale. You are not obligated to do either of the two. However, you may lose 100% of your total investment in options trading which is the value of the option itself.

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