Cashflow Solution

[geoffw]

Robyne,

I'm enrolled for August. I would guess that it's expanding on what he did in the Money Magic (or whatever one it was)

I know that some have expressed the opinion that you can learn everything by books.

I'm a person who gets a lot more out of face to face (or even video or audio) than out of books. I know now what sort of things I will get out a course, and I'm going in with my eyes open- I'm prepared to pay the extra because I learn a lot more that way- and I do get a lot more motivated.

I guess for me another option may be CDs- I do find listening to learning material in the car a good use of time. CDs of a number of courses are available a lot more cheaply than the course itself.

 

[Robyne]

Hi Geoff,

Yes, I did Money Magic (the original version) and instant income by the home study course. I found that great! Craig (my husband) and I would put aside Wednesday nights as Peter Spann nights and just do a little at a time. I really think we got more out of it that way and of course you can do revision whenever you want.

Unfortunately there is no home study course for super trader so it's either go or not. It looks like not! Money is one thing but it's also child care and other issues. I may go to the next one although other people seem to think there are better courses out there for about $1,000. Or Perhaps Freeman Fox will put out a Home Study version. I live in hope.

I will be doing some reading and ramping up the trading a bit in the next few months.

I hope you enjoy the three days. I do envy you! Let me know how it went.

 

[Peacock]

Options trading course

Robyne,

I haven't attended Super trader for the same reasons you haven't, still have to make up the fees for the other courses. But the course I was referring to is run by someone who currently trades for his living, and I believe he does it well. He uses protected buy write for general income, and straight call and put short term trades for the "bonus!" The person I'm refering to spends all his time with you going through options from scratch, covering everything Peter Spann covers in both Instant Income, Super Trader plus more, but with small groups of up to 15 people. He then takes his time to ensure that people understand the content before moving on. With yourself, having already attended Instant income and actively trading Protected Buy Write, you'll find it most useful! He'll fill in any gaps Peter may have left, and you'll know all the right questions to ask to help clear up anything that's a miss. He also provides active support when ever you need it, which I have found very useful. The technical analysis he teaches is much the same as Peter Spann's but shows you exactly how to interpret it into increasing your chances of picking the trend direction. If you like, drop me a private email, and I'll give you his email address, and you can contact him directly. Let me know your thoughts.

Bill,

I too trade straight options, in and out within a couple of days, but with my triggers, there are only a few opportunities, but the results are generally successful! This isn't for income, but for cream
I I too believe technical analysis is a very powerful tool in successful trading

regards,

Tony

 

[Bill.L]

Hi all,

Tony

"But the course I was referring to is run by someone who
currently trades for his living, and I believe he does it well. He
uses protected buy write for general income..."

Are you sure this person trades for a living and does not sell courses for a living?? If they really do trade this way ask WHY??
As I stated in an earlier post using the calendar spread is a cheaper choice with the same risk/reward profile. You also tie up a lot less capital.

I find it very hard to believe that someone who is a successful trader would use the protected buy/write approach. This is a broker driven strategy.

bye

 

[Kevmeister]

Tony,

If the guy you are referring to runs courses, why are you so hesitant to mention him on the forum. Why the need for a private email to get his details. Businesses thrive with advertising, so why not advertise them?

 

[Peacock]

Trading course

Kevmeister,

The reason for not promoting the guy's name on the forum, is for his benefit. He doen't need thousands of emails every day from people that are sceptical. Alot of people that hear about these strategies are quick to knock them without first learning about them or better still trying them!! By private email, I could sort through the sceptics!
He only runs trading courses a couple of times a year for fun, not for a living.

Tony

 

[Waverlybay]

Hi

There is absolutely no way one can trade options risk free.

I am personally very wary of anybody who claims to have a strategy generating an endless stream of profits, involving only a few hours of trading a day and which can be implemented casually from the comfort of their home. The protected buy write strategy is the oldest scam amongst brokers - because as bill.l said, the same risk profile can be adopted using put options which results in less brokerage and better utilisation of capital !

My main concerns with those investors who think that protected writes are the holy grail to "passive" income are as follows:

1) The famed "protected/write strategy" - along with all the other options trading strategies - are meant to be implemented in specific market conditions. The protected write strategy is not meant to be a strategy that you blindly apply month after month after month.... For example, the strategy would be a disaster in periods of volatility and to implement it in inappropriate market conditions would mean more profitable trades are missed. Each strategy has a place in the market: the key is doing the research and analysis to determine whether the market conditions are ripe for the particular strategy to be implemented. Trying to "live off " the passive income of writes means by definition...you pretty much need to be writing most if not every month, irrespective of whether the market conditions are appropriate at that time.

2) I believe it is completely inappropriate for investors to trade thinking "i need to make X to pay the mortgage payment on Y property". Trading with the specific goal of trying to generate a specific return to pay off an obligation is a recipe for disaster because the focus becomes on the end result - rather than the trading process. It is far better to have a trading methodolgy and system that is completely independent from other businesses/investments

3) Related to the above two points, the psychology of successful trading is not to generate profits and live happily ever after. Knowing how to implement stop losses, how to protect capital, accept one's limitations, learning freedom in losing is far more important. Apart from the good books recommended above by bill.l, i would also suggest "Trading in the zone" - by mark douglas - to get a better handle on the pyschology of trading.


In closing, when NCP hit a double top in August/Sept 2000 - the trade that was ON was NOT a protected covered write. And again earlier this month, when BHP was climbing off the low $8.. research and analysis would have clearly shown that the most profitable trade that was ON was NOT the protected covered write.

The most profitable trades come about by patience, research and discipline. Not a very exciting tip huh?

cheers

WB

 

[Bill.L]

Hi all,

Tony, I noticed that you still have not been able to answer my question about the guy you seem to be marketing for. I have a little too much experience in this field too trust anyone who sells their secrets, but can't answer simple questions.

Geoff,

The face to face contact when learning is often the best way in most fields. However when it comes to the investment arena, there are too many sharks who sell information at grossly overinflated prices. You can make ANY system of investment look easy, risk free, and highly profitable, by selectively choosing your data period, and or stock. Same goes for property.

If you have done the research, read the unbiased manuals(your due diligence?), before you go to one of these seminars that cost hundreds, several things can happen.

1/ You might learn that one particular strategy works in certain conditions and you can put this to use.
2/ You realise that the data was selectively chosen and the strategy is bunk and the participants have just been ripped off.(at least you would then know not to use the strategy as you would only lose more)
3/ You are able to ask the hard questions at the seminar, from a position of knowledge.
4/ You realise the quote from a well known publication "There is nothing new under the sun" is entirely accurate.

bye

 

[Kevmeister]

Bill/WB:

Do the books you're recommending explain the different strategies easily and when to apply them?

Thanks

 

[Bill.L]

Hi Kevin,

The Mcmillan book is basically a text book that explains every combination of possibilities with options. It is over 880 pages of medium print(44 lines) to the page.
As to prediction, Mcmillan just shows what to expect in terms of payout if different things happen to each of the strategies. For stock direction, that is in a Technical analysis book.

bye

 

[Waverlybay]

Hi Kevin

Douglas' book deals more the psychology of trading than the "nuts and bolts" of trading options. I found this link which gave a useful overview of Douglas' book

WB



http://books.global-investor.com/books/12984.htm

In Trading in the Zone, Douglas uncovers the underlying reasons for lack of consistently profitable trades and helps traders overcome the deep-rooted mental habits that cost money. Douglas takes on the myths of the market and exposes them, one by one, teaching traders to look beyond random outcomes, to understand the true realities of risk, and to be guided by and be comfortable with the 'uncertainty principle' that governs all stock speculation.

Trading in the Zone introduces a whole new mental dimension to getting an edge on the market. Use it to leverage the power of the 'zone' for unprecedented profit.

Contents
1. The Road to Success : Fundamental, Technical, or Mental Analysis?

2. The Lure (and Dangers) of Trading

3. Taking Responsibility

4. Consistency : A State of Mind

5. The Dynamics of Perception

6. The Market's Perspective

7. The Trader's Edge : Thinking in Probabilities

8. Working with your Beliefs

9. The Nature of Beliefs

10. The Impact of Beliefs on Trading

11. Thinking Like a Trader

Reviews
'This book is a winner. It addresses the psychological attitude that is an absolute must to becoming a competent and consistent trader. From the basic explanation of why we do what we do to defining the problems and finally showing what action you need to take in order to set you on the path to confident trading at a mental level, I recommend it without reservation.' - Robert Krausz, President Fibonacci Trader Corp.

 

[Carson]

Originally posted by Bill.L
Hi again,

Shares drop unexpectedly to say $5.00 during your first 2 months. Your protected allright, but writing any further options against your position would not be profitable as the strike price would have to be $3.00 out of the money.

bye

Hi Bill,

How about rolling the stock down to the new price at a loss, sell or exercise [depending on the time valve left] the now dramatically inflated put.

You can now buy more contracts at the current price, with a new hedge. Now you can sell profitable OTM calls.

Rgd’s

Mike