I am an open channel for creative ideas

I am an open channel for creative ideas.

I receive creative money making ideas everyday.
http://www.inspiringjourneytofinancialfreedom.com/Inspiration-PositiveAffirmations.html

What is Options Trading??!!

Options trading become very popular lately because option is one of the most flexible and versatile instruments that can greatly enhance the performance or reduce the risk of an investment portfolio. By deploying the right strategies, options trading enable us to make money whether the market is bullish or bearish or even when the market going sideway.

So, what is an Option?

Option is a contract that has the right but not obligation to buy or sell a stock at a specific price on or before a specific date.

How does an option work?

An option is very similar to when we want to buy a land to build our home sweet home. For example, when we found an ideal piece of land and need time to obtain permit, land approval, securing financing and seek confirmation from Feng Shui master, etc.

At the same time, we would like to secure the land while putting everything in place. We can go to the land owner and “strike” a deal to buy the land for $5 million. We create a contract that gives us the right to buy the land but it does NOT constitute an obligation that we must purchase the land.

The contract has an expiration of 3 months to put everything in place. Hence, we are controlling the land for 3 months and we must decide whether to buy the land or not before the expiration date.

As a return, the land owner is expecting to collect a premium of $200,000 for being obligated to sell the land to us at $5 million. This premium is based on how much the land might increase in value during the 3 months period.
The land owner will be more than happy to receive and keep the $200,000 premium paid for the contract no matter what happens. At the same time, the agreed upon sales or strike price is likely to be much higher than he or she could obtain if he or she sold the land without obtaining all the necessary approvals.

The contract in this example is very similar to a Call option in stock market. The strike price is $5 million while the option premium is $200,000 for a 3 months expiration contract.

During the 3 months period, if we discover a gold mine underneath the land. The value of the land shoots up to $50 million. However, the land owner is still obliged to sell the land for $5 million. We bought the land for $5.2 million and can now sell it immediately for $50 million to make a $44.8 million profit.
However, if for some reasons such as the application to build a house is unsuccessful or the Feng Shui master confirms that the land is not suitable to build a house. We decide not to exercise the option to buy the land. In this case, we will lose $200,000 premium paid for the option.

Using the similar example and apply it to the share market or options trading, investors who anticipate a bullish market can buy Calls option on the stock to ride on the upward moving wave. When the stock prices go up, the premium of Calls will go up. That’s how an option trader can make money from option but at a fraction of the cost of owning the actual stock.

On the other hand, investors who anticipate a bearish market can buy Puts on stock to profit from falling prices. As the stock prices go down, the premium of Puts will rise to profit the investors. Puts are also used to protect portfolios like insurance to hedge against a fall in stock prices.


Feed Shark

I carry a special feeling of joyousness and abundance with me all the time

I carry a special feeling of joyousness and abundance with me all the time.


http://www.inspiringjourneytofinancialfreedom.com/Inspiration-PositiveAffirmations.html

I am ready and willing to release all resistance and negativity in my mind

I am ready and willing to release all resistance and negativity in my mind.

"Thank You For Sharing, my dear mind."

http://www.inspiringjourneytofinancialfreedom.com/Inspiration-PositiveAffirmations.html

Feed Shark

3 Days Millionaire Mind Intensive by T Harv Eker

I am back from the 3 days Millionaire Intensive in Singapore by T Harv Eker.

Personally, I feel that it was a great 3 days seminar to find out my money blueprint and why I react in certain ways when come to money. There is a rootcause behind this and it is something to do with our past experience especially from our childhood experience. Other than finding out how our blueprint is formed, the seminar also share some ways to change your blueprint in order to be rich and happy or rich and healthy....etc.

I found my blueprint and am committed to act and change it.

Also, Harv shares his money management system to the audience on how to manage your financial in order to attain financial freedom. It is very logical and make lots a sense to me. I am going to start practising it...

Hence, I would highly recommend this seminar to those who missed it or never heard about this seminar before. I would say this is a great starting point to find out what is happening in your life and how could you change and make it better. If you are not sure whether you are doing well, so-so or badly. Just look at your result, your achievement, your current networth or even your bank account. That is the undefeatable fact or outcome of your financial result.

Also, I bought Harv's best selling book, Secret of the Millionaire Mind, during the seminar. The book come with 2 complimentary tickets to the same 3 days Millionaire Mind Intensive seminar at Malaysia or Singapore in year 2008. For those who missed it, you can use this link (http://www.srpl.net/mmi08) to register and obtain the complimentary ticket but you need to pay for the course materials of S$79.

Just in case you are wondering whether you need the course materials...The course materials include 2 workbooks (1 to complete during the 3 days seminar and another one is a 90 days program to exercise and practise what you have learned after the 3 days seminar. This is helpful to reinforce what you have learned and ensure we make it a habit to practise and change our blueprint completely) and a box of CDs & DvDs that I have yet to listen or view them.

I benefit from this seminar and just want to share and hope this seminar benefits you too...

p/s: just in case you are wondering whether I am selling a product via the provided link. The provided link is NOT an affiliate link and thus, I don't make any money out of it. I sincerely wish that the seminar will benefit and change your life.