This is one of those questions I hear from individuals new to dealing choices all the time and not an simple query to respond in my opinion. Sure, dealing choices can create riches and many, such as myself, have made more an a thousand dealing choices. However, can dealing choices convert YOU into a millionaire?
As you can see, it’ll only take 14 deals at 50% benefit per business, which is not a lot in dealing choices, to grow $5000 into a thousand. If you do only one of those deals per month, it brings you only a little bit at least annually to become rich. As such, becoming rich from dealing choices is clearly not outside the world of probability and clearly very fast if you do it right.
That leads us to the next query, are you able to produce a sequence of 14 straight victories at 50% per win? There is clearly no simple response to this as well. I have heard of extremely fortunate those who has done that before but that clearly isn’t something that is applicable to everyone.
Yes, in my 15 years of dealing choices, I must say that I have never seen anyone create a sequence of 14 victories within 1 season or so without dropping no matter what choices strategy they use. The great news is, you don’t need for creating 50% on every win nor do you need a sequence of 14 victories to create a thousand in dealing choices for when you follow a sensible dealing technique and have lots of tolerance.
Making a thousand in dealing choices isn’t about not dropping. It’s really about creating more victories than failures. Provided that you have a method of continually creating more victories than failures, you can create a thousand in anything for when you have the tolerance to stick to the game. Yes, this is the same reasoning in any type of dealing.
If it is the same in any type of dealing, why then choices trading?
The beauty of dealing choices is that it actually helps you achieve more victories than failures through 2 unique means; Convexity and Flexibility.
Convexity indicates being able to possibly earn more income than you may reduce. In futures trading dealing or dealing and investing, you may reduce as much cash as you can win. When the inventory goes up by $10, you are creating $10 price of benefit and if the inventory goes down by $10, you maintain $10 price of loss. There is no convexity. When you buy choices, they will go up in value as lengthy as the inventory keep going in the correct route (up for contact choices and down for put options) but if the inventory goes the other route, you will only reduce as much as you used in purchasing the number of choices, nothing more! For instance, if you bought one contract of contact choices for a regular for $150 and the inventory went up by $10, you contact choices would be value $1000 but if the inventory went down by $10, you would only reduce that $150 that you used. That’s convexity. Provided that you use only cash you can afford to reduce or the most you are willing to reduce on any single business towards purchasing choices, you will always have the advantage of convexity on your side.
Versatility is found in the range of choices techniques that can be put together. Several choices techniques allow you to benefit not only when the actual inventory goes in one route but in several directions! Yes, in futures trading or dealing and investing, you only benefit when the inventory goes up or down (when you are short the inventory or futures). However, in dealing choices, there are choices techniques that allow you to benefit when the inventory goes up OR down in both guidelines and choices techniques that even allow you to benefit from all 3 directions! Yes, being able to benefit in more than one route significantly improves your probability of successful and significantly improves the probability of continually creating more victories than losses!
So, can you become rich dealing options? Yes you can. In fact, from the qualities of convexity and versatility mentioned above, dealing choices could create it simpler for you to become rich compared to inventory or futures trading dealing. As such, the probability is there and the odds are in your benefit. The final query to respond is, do YOU have what it requires to become rich through choices trading?