Wealth Principle #1: Understand how spreads work and use them to your advantage.

Is debt bad? Not always.

Let’s say you can consistently earn 5% on your money every month. This is a conservative number for a savvy option trader, and [...]]]>

Option Trading System. Stock Option Trading System Indicators. Principles for Option Traders.
3 Wealth Principles for Option Traders

Wealth Principle #1: Understand how spreads work and use them to your advantage.

Is debt bad? Not always.

Let’s say you can consistently earn 5% on your money every month. This is a conservative number for a savvy option trader, and many people should be able to achieve this kind of growth.

Now let’s say you have access to a line of credit at 2% interest.

If you can make 5% a month and borrow money at only 2% a month, you can borrow the cash and keep the spread, which in this case is 3%.

This is a form of arbitrage and I do not recommend it for everyone. But it is an extremely important concept to understand. Because if you understand it and are able to leverage it, you could very quickly ratchet up your net worth without even using your own money.

Wealth Principle #2: Don’t trust the talking heads on TV to give you sound investment advice.

Once something hits TV, it’s too old to be of any value. The institutional investors like Warren Buffett have already made their moves.

Most of us already know this, but it’s still tempting to think you’ve gotten a “hot tip” when you hear a “stock expert” pontificating on the tube.

Don’t be fooled.

The best investors lead the market… and then the media comes along and reports on what’s already happened. If you really want to become wealthy, you must become a leader, not a follower.

Wealth Principle #3: Develop resistance to society’s influence over your buying habits.

Humans are naturally competitive creatures. When a neighbor buys a Lexus, all of a sudden we want one too. And when a friend upgrades into a McMansion, we develop a hankering for a big home with curb appeal–just like our friend’s new house!

That’s just the way we work.

But there is no greater wealth-eroding power than unbridled consumerism. At some point, you have to develop resistance to the media… to how society tells you to live… to always buying bigger, better, fancier things.

Get a handle on this and you’ll be far ahead of the maddening crowds.

These are three wealth principles I’ve tried hard to live by, and they have served me well. What wealth principles do you live by?
Best regards always,
A.J. Brown

P.S. My option trading system is designed so that you can make your trades in only 30 minutes a day. It requires some up front effort to learn the processes I use. But once you learn and practice them, you might eventually be able to do everything in 20 minutes or less each day. Learn about my Trading Trainer membership program here.

Is there is a quick and easy way to find great trading opportunities?

Of course, this question is probably on many people’s minds. The phrase “hard work” appeals to very few people. “Quick and easy” sounds a lot better. And nobody wants to sit and stare at a computer [...]]]>

Quick & Easy Way to Trade Stock Options

Is there is a quick and easy way to find great trading opportunities?

Of course, this question is probably on many people’s minds. The phrase “hard work” appeals to very few people. “Quick and easy” sounds a lot better. And nobody wants to sit and stare at a computer screen all day watching the price movements of individual stocks.

Guess what? I’m like everybody else. I don’t want to be chained to my computer either! But still, I must confess…

There is no Holy Grail to option trading.

There is no magic strategy or “blue pill” you can take (a reference to the movie the Matrix). If there was, I’d be in the blue pill business!

And yet even though there may not be any instant solutions for becoming a great options trader, you CAN get to the point where trading is quick and easy. It is a process. It takes time.

When you start out, you almost feel like you’re learning a foreign language. There are new words, new concepts, and new skills for you to master. There is a kind of subculture to become acquainted with.

But over time, you get the hang of things. You start to understand concepts that were at first difficult to understand. You begin to experience some breakthroughs.

With enough practice, what was once difficult becomes easy. What once took hours, now takes minutes.

It’s like cooking a meal for the first time. You follow the recipe exactly. And even though it might be described as a “30-minute meal,” it takes you a full hour to prepare, not counting the cook time.

The second time you make this meal, it goes faster. The third time, even faster. And so on. Eventually, that “30-minute meal” that once took you an hour to prepare, might take only twenty minutes.

It’s the same with stock options trading.

In the beginning, you will invest more time learning. You will have to go slowly and closely follow the “recipe” to avoid making mistakes. But over time, as you practice the process, you will become very proficient.

So quick and easy comes with knowledge, experience, and skill. It doesn’t always come right away, but it comes eventually.

This is a good thing. After all, if it were quick and easy for those without knowledge, experience, and skill, wouldn’t everyone be doing it?

Best regards always,
A.J. Brown

P.S. My option trading system is designed so that you can make your trades in only 30 minutes a day. It requires some up front effort to learn the processes I use. But once you learn and practice them, you might eventually be able to do everything in 20 minutes or less each day. Learn about my Trading Trainer membership program here.