Why Should I Learn About Stock Option Trading?

Savvy Investors Are Using Option Trading Strategies To Create Income, Enhance Profits, and to Protect Their Portfolios.

Robert Kiyosaki, author of the Rich Dad, Poor Dad books, is talking about stock options. Whether you are a fan of Mr. Kiyosaki or not, he is undeniably one of today's more prolific personal finance authors in the world and he wants us to know that stock options are the "investment of the rich."

It is not just Mr. Kiyosaki, but an entire industry that is springing up to promote option trading and service the needs of stock option traders. There are a lot of people talking about how options are the key to financial freedom and why you should learn how to trade them yourself.  Through all the clamor, take pause and consider why it is in your interest to learn option trading techniques and whether stock options are truly the missing link to incredible wealth.

Why More People Will Be Trading Stock Options

Stock options have been traded on organized exchanges since the 1970's. The public's eye was drawn to these 'derivative' securities in the 1980's and 1990's when large losses resulted after large funds found themselves over leveraged. More recently, with the advent of electronic option trading by the International Securities Exchange (ISE), options have been re-introduced to the public in a more constructive light.

What was once a very expensive product to trade is now quite affordable. This once exclusive playground of the ultra-wealthy and large hedge funds is now open to anyone with a few thousand dollars. Technology introduced by ISE is causing nothing short of a revolution as now multiple exchanges compete for order flow.  In fact, the NASDAQ market has announced that they will begin trading options on their exchange which will bring options trading to an even larger audience.

What Stock Options Offer Individuals Like You

What stock options offer the individual trader is a tool that can be used to create cash flow, reduce risk in a portfolio, increase or stabilize profits, and to speculate on changes in the market without exposing your capital to significant losses.  These benefits all pre-suppose that you understand how options work, and that you use them both intelligently and responsibly.

The last few years have demonstrated that mutual funds habitually lag the market during market advances and accelerate losses during hard times.  Those funds are typically saddled with management fees and other expenses.  The fund may experience a profitable year when the market is cooperating, but the fees and expenses are deducted from the profit.  Those same fees and expenses must also be paid in down years, adding to an already painful loss.

Similarly, stock brokers and investment do not have the ability to make you truly wealthy.  Most are sales people working for brokerage firms who will invest your money in the products their brokerage tells them to recommend to you.  Those few exceptional individuals who are truly talented generally limit their clientele to those who have already created substantial wealth.

Preparing To Create And Grow Stock Options Wealth

Unless you are already wealthy, your investment future is tied to your own personal financial education.  Your struggles with mutual funds and stock picking services are now over.  You are about to learn how to truly build wealth in a consistently and methodically.  The primary tools for your future wealth creation are stock options, but you must first learn how to use these financial instruments both intelligently and responsibly.

Option traders are not born.  Success in trading is not genetic, but is learned. 

Before you experience long term success you will need to invest your time, your diligent efforts, and your money.  Your reward for this commitment is that you will learn how successful option traders play the game. 

You have taken the first step in your stock option education by subscribing to this service.  While we may not teach you everything you need to know, we hope to provide you with a strong foundation on which you can build.  Your first lessons will define an option, how options are priced, and illustrate simple applications of stock options to achieve specific goals.  Later lessons will introduce more advanced topics and strategies.

Those lessons will arrive in your e-mail inbox over the coming weeks.  The next should arrive tomorrow...

Welcome to TheOptionClub.com!

Additional Resources

Introduction To TheOptionClub.com
A brief video tour of our website and some
of the resources you will find here.

Option University Introductory Video
A FREE video introducing options and
the reasons why you need to them!