When I first got into the stock market I was always looking for the blue chip stock or the undervalued stock with the dream of thinking one day it will make me rich. After 2 years of getting 10%-15% returns; I realized it would take me many years to achieve my dreams. When I found Stock Options and a system that works with it, that’s when all my dreams of being financially free finally came true. In fact, if you asked me to buy shares on the stock market, it would feel like watching grass grow. That’s why I stopped investing in stocks.
Here’s 5 Reasons Why I Never Touch Stocks Anymore:
1. The Multiplier Effect
Options are a leveraged tool…when a stock goes up 5% it might make you happy but NOT wealthy unless you have a lot of money invested in that stock. For new investors with only a few thousand dollars, this is not going to make much of a positive impact on their financial situation.
But with Stock Options, a mere 5% increase in the share price can result in a 30%-50% increase in your investment. And if you can do that once or twice a month, the compounding effect over a year can be life-changing.
2. I Can Bet On Any Horse
Imagine going to the races and trying to pick the winning horse. Changes of you betting on the winning horse is very low. But what if you can bet on any horse and still, win?
Stock options investing is similar. if you know how to, you can bet on any ‘horse’ and make money. Whether the market goes up, down or sideways; you can still make money.
Whereas when buying shares, you generally can only make money if the stock goes one way…UP.
3. Protecting My Downside
The #1 greatest fear for every stock investor is that if the market has a big correction or crashes. I, on the other hand, have no such worries.
If the market crashes, my investments are well protected. Many times, I’ve made the most money when there’s a sudden huge market dip. That’s the beauty of using stock options rather than buying the actual stock.
4. Time Can be My Friend
For stock investors, if a stock goes sideways for a long period of time; they end up making no money or lose out on other investment opportunities. But for me, sideway stocks can be great. Every month I can make a good sum of money as the stock goes sideways.
That’s another benefit of using Options.
5. A Great Tool to Compliment Your Investment in Shares
Ok, so maybe you want to stick to investing in regular shares.
Options are actually a fantastic tool to compliment your investments in shares and help you get better returns.
Here’s just a few examples:
- You can buy shares at a ‘discount’ to the current market price, usually at a 2% to 5% discount.
- You can get ‘rent’ from your shares every single month of around 2%-5% of the value of your shares.
- Protect your stock’s value. Imagine that for a small price, you can ‘lock-in’ the profits of your stock and not worry about waking up to a market crash…and still profit if the stock goes up further
But a word of caution…Options, like any leveraged tool, is like a double-edged sword. It can help you cut things but you can also cut yourself.
While Investing in Options can help you get incredible gains. There are many dangers:
- Many people end up losing all their investment capital
- Many people take risks that professionals would never make
- You need a good system to invest otherwise you will be constantly stressed.
- Time can be your enemy…the value of your Option can erode very quickly and be worthless.
That’s why you need proper education and a system that works…
PS. Warning! Once you discover the power of Options investing, you may not ever want to invest in anything else ever again.
Interested in knowing more about stock options trading? Register for a free webinar now.
Mirriam MacWilliams is a recipient of the “World’s Leading Trading Couch and Trainer” by Brand Laureate. She is the former National Director of Education of the largest investment club in the US.
A corporate high-flyer at the peak of her career, Miriam gave up a jet-setting job as the former Vice-President of Investor Relations of a large bottling company outside of the US, and a six-figure annual salary for a little known and predominantly male-dominated world of stock options trading.
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