How Options differ from Stocks

A. Options are designed to make a magnified movement against a small movement on the stock. You can take a small investment capital and actually get a 100% return on that capital. You don’t need to take lot of trades but you need to know

1) The right time to take the trade

2) The right option to invest on (call or put)

3) Be in a trade for no longer than the three-week window of time

The stock movement in that short window of time can earn you a very nice return.

And that’s because with a small investment capital, you can buy the option that is increased or designed to increase in value as the stock goes up. So participating in the stocks that are going up in price will make a lot of money. On the other hand, you can buy options that are designed to increase in price as the stock goes down in price.

So now you have the ability to make money safely whether the stocks are going up or down in price.

B. Options have an expiration date. Stocks don’t. Options are very aggressive instruments because they are highly leveraged instruments and carry an expiration date.  Equity options expire on the 3rd Friday of each month. So give your potential candidate sufficient time to allow its movement.

How to make money regardless of market trend

The essence of investing in stocks is that you want to pay a low price for it, hoping in the near future that the value increases so you can sell it at a profit. But what if the market shows a continuous down trend?

Here’s a few pointers you may want to take note of.

1)     It is never a good idea to buy stocks that are dropping in price.
Strong stocks have the tendency to get stronger while the weaker stocks have the tendency to weaker.
So instead, it would make better sense to buy a stock as it is going up in price!

2)    Online trading has evolved over the years with many sophisticated yet user-friendly platforms that can aid you in generating great returns. When trading, keep in mind that nothing matters more than your ability to protect capital while it is invested.  So make use of the tools designed to take the emotion out of your trading and protect your captial.

3)    Mr. Warren Buffett once said:  You cannot time the bottom of the market and you cannot time the top of the market so why try? Realize that lots of money can be made when stocks go up or when stocks go down by learning how to trade options. The premium you pay for the option is fraction of the cost of owning the stock outright.

Unlike stocks, Options gives you the opportunity to profit whether the market trends upwards or down. So once you learn how to read the signs of the stock market you will never have to be concerned about how much lower the markets will go. On top of that, Options cost a fraction of Stocks which mean lower risks! Remember, nothing matters more than protecting the capital you’ve invested.

To learn some strategies on protecting your capital and generating a steady income, sign up for a free seminar at wealth-mentors.

Women make great investors too

1. How often have you held a losing investment for too long?

2. How many instances have you waited too long to sell a winning investment?

3. Do you find yourself allocating too much to one investment?

4. Have you bought a hot investment without doing any research?

When it comes to investing, these the habits you want to avoid.

On a survey by Merrill Lynch Investment Managers, women were less likely to commit these mistakes.

If you wish to know the exact figures of the 4 mistakes committed by men and women…

1. 35% women VS 47% men having done so at least once
2. 28% women VS 43% men
3. 32% men VS 23% women
4. 24% men VS 13% women

But why are there fewer females than males in this sphere?

Is it because the investing process is too complicated?

Because there’s not enough time?

What if I lose money in the investment?

In Mirriam’s training, she makes it a point to present complex subjects in such a way that anyone (regardless of trading proficiency) can understand and apply right away. When the rules are applied right, anyone with as little as 30minutes a day are able to learn the skills of a successful trader.
Mirriam’s trading plan focuses on protecting her investment capital while it is invested in the market. Whatever the trade, she first ensures that the possible losses do not exceed certain limits before calculating what she can profit. That way, she will always be able to make certain her capital is saved from total loss.

So believe it or not, the fear of losing money is the very reason that makes women good investors!

7 Habits of a Successful trader by Mirriam MacWilliams

Alike everything else you set your mind to do in life, the most important aspect that determines your success in completing (or doing well), has everything to do with your MINDSET.

Sure, there are definitely plenty of pros to start trading but anything that sounds too good to be true probably is. When Mirriam first started trading, she made her fair share of losses amounting to 5-figures. Back then, there wasn’t any proper strategy and it was “no different from gambling” as she would say. Here are a few note worthy lessons she learnt over the years.

1. Practice self control

In trading, there are 2 possibilities. Profit or Loss. The more you can gain, the higher the risk. Instead, aim for smaller and consistent profits that don’t result in losing everything you have.

2. Have a plan

Going head first in an uncertain environment isn’t the wisest thing to do especially when it concerns your finances. Invest in education and acquire proven strategies that increase your probability to profit.

3. Social proof isn’t always proof

As Mirriam puts it, don’t invest in something just because everyone is. Don’t allow yourself to be influenced off track.

4. Manage your risks

More often than not, when a profit opportunity comes by, we overlook the risks that tags along. Calculate your risks and know when to cut losses. Fortunately in trading, you can set stop losses to prevent losing everything you’ve staked.

5. Quality not quantity

A common misconception about trading is that you have to watch the stock market all day long. But truly success is being able to do your homework, enter your trades, set your stop loss and let everything else fall in place. That takes up less than a fraction of your day!

Read the full article – 7 Habits of a Successful trader by Mirriam MacWilliams

Thoughts from a trading beginner

Here’s a video of Oliver, a complete beginner at trading, sharing his experience on attending the Smart Traders Seminar

Options Trading Myths DEBUNKED!

Malaysia’s STAR paper posed Mirriam several commonly mistaken perceptions on Options Trading:

1. Options trading is complicated and hard to understand

2. Trading in the US market means you have to forgo your normal lifestyle.

3. You need listen to the news to decide on trades

4. Paper trading develops bad habits.

5. You need to buy expensive software to trade effectively.

Concerned or curious about any of the problems listed above? Read the full article on Option trading myths.

What is Options Trading?

“An option is like a contract that gives the buyer the right (but not the obligation) to buy or sell an underlying asset at a specific price on or before a certain date.

An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties.”

Definition derived from Investopedia. And it’s a pretty good place read up and understand the whole traders lingo.

Unlike trading stocks, where you can only profit if the stock you bought rises in price, trading options allows you to profit whether the stock drops or increase in price. This is where Call and Put options arise.

You buy a Call when you expect the price of the stock to increase before the Option expires and vice-versa, you buy a Put when you expect the price of the stock to drop before the Option expires.

As simple as that sounds, that isn’t to say Options it’s a sure-win alternative to trading stocks. You may also hear a fair share of people with bad experiences regarding Option Trading but that’s because they haven’t found the right strategy!

Acquire some useful and easy to learn strategies from Mirriam MacWilliams at the Smart Traders Seminar!

Mirriam MacWilliams

Self-made millionaire from trading, Mirriam MacWilliams has coached over 5,000 student from Singapore, Malaysia, and Hong Kong. In her training, she shares her expertise in trading options, forex, ETFs, stocks and futures.

Prior to being the chief trainer at Wealth Mentors, she was the former National Director of Education; the largest non-profit investment club in US of 14,000 members strong.

Over the years, she has been passionate about coaching on how to invest profitably in the stock market with strategies broken down into simple and easy to follow steps. These strategies have been tested over time and have proven to work.

Find out more from www.wealth-mentors.com