In today’s market environment, the individual investor has the best chance for successfully trading on their own. However, that opportunity comes with a risk: a big chance for failure! Everything that individual investors have been asking for over decades is finally right there at their finger tips!
The problem is that most individual investors do not have the knowledge, experience, or time to spend doing their own research, stock selection, execution, and position management.
The development and expansion of the Internet has solved part of this problem by timely information and resources to the individual investor like never before. Fact is, an individual investor has more tools and resources readily available to them than a market maker had available to them just 15 years ago!!!
Earnings reports, income statements, balance sheets, charts, graphs, research, chat rooms, and even CEO video conferences are easy to obtain online and in real time! Now, investors have instant access to all the necessary tools to make their own decisions.
However, for many the problem still exists. Why? Because, all the tools in the world are no good to you if you don’t know how and when to use them. The truth of the matter is that most investors are not qualified or properly trained to interpret the use of these tools, and are therefore ill-equipped to use them in making their own investment decisions.
So now what should investors do? The answer is to find someone to help you help yourself. Not to make your decisions for you because that is ultimately up to you, but to assist you in learning how to make your investment decisions for yourself and to help educate you as to the “when, how and why.“
Simply put, you need to become more involved with your own investing and you need to do it now! The first step we must ALL take in the involvement process is education. Education is the key to successful investing for the individual investor in the market of the future. Jon, Pete, and myself all had to learn from somewhere and someone to get started. We all do! We all have to start at the beginning and learn first before doing!
I know what you are thinking as I am as impatient as you probably are. It really seems so simple! All of us who invest in the stock market know that there are three possible outcomes after we make a stock purchase. First, the stock can go up and this is generally a good outcome. Second, the stocks can go down and this is usually a bad outcome. Third, the stock can go nowhere – which is also generally a bad outcome although not as bad as the second outcome. Remember, even though the trade itself might not have lost money, you still incurred commission costs on the way in and out that will result in an overall loss.
It all sounds so easy when we talk about making money in the market, but the reality of the above says that there is a 66% chance of you losing money. Now, what if I tell you that by employing a certain strategy correctly, you can actually change those odds to improve your chances dramatically? Instead of having two of three scenarios possibly go wrong, you would have two of three scenarios that could go right. And, the third scenario, the bad one, wouldn’t be nearly as bad.
Sounds great, doesn’t it? Almost too good to be true! But, it is true! It is 100% true! But, you have to learn about options to see the truth. That is why we are here! That is why The Investitute was created! It was created to teach you these things and teach them to you fully, in-depth and CORRECTLY! But it is you who has to learn and this is where you start…..at the beginning!
P.S. The Vertical Spread set up in a premium collection style is the answer to the question but I am sure you already knew that!
P.P.S. If you didn’t know the answer above or don’t know what I mean by setting it up as a premium collector, then you should sign up for our classes soon!
P.P.P.S If you think that by the term premium collector I meant a credit spread than that is only half correct and you better sign up for our classes NOW!!