Safety in the Markets
Posted on 02. Aug, 2009 by Global in Options Trading, Stock Investing
Anthony and I had an amusing conversation with a fellow BBQ’er yesterday while out at the beautiful Shelly Beach for the day.
The gentleman in question was talking about how the global financial crisis had affected the price of oil and other commodities but providers have failed to bring down the price of petrol and other products that we consume on a daily basis in line with the slaughter in prices.
No argument there, but he then when on to say “don’t go and put your money into any shares right now will you?”
Now I’m certainly not making light of his extremely cautious view at all, for all I know this gentleman may have been one of the many thousands who have paid someone else to manage his money for him and gotten the shock of his life last year on finding they didn’t effectively manage his money at all.
Is it any wonder there is still a ton of money gaining almost nothing on the sidelines?
I believe this particular gentleman represents the majority of our population in his way of thinking and I understand why many people are scared to put their money back into the Stock Market, but if only they knew what putting their money to use safely and effectively in the market right now could actually gain for them, they may take a different stance.
For instance, we have seen several stocks reach prices lately that are almost triple their lows from 6 months ago and while you may think those investors who have profited from the recent rallies have taken an enormous risk and really just gotten lucky, the truth is they have known exactly what they were doing.
One of the safest ways to enter the market is by investing in shares as part of a tailored but simple Options Trading Strategy called the Protected Buy Write.
This strategy allows us to create positive returns if the market continues to rally and it gives us assurance (and insurance) that we are protected if the markets start to sell off again. And if our stocks are not assigned, this strategy can be a great way to make additional income for your portfolio.
Stock Options volumes have surged over the last 5 years because savvy investors are cleverly using them to hedge (or insure) their portfolios while creating income off their shares as well.
If you would like to know more about the Protected Buy Write, come along to one of our FREE 2 hour seminars (next one August 11th at Port Macquarie, NSW) or email us at info@globaltradingedge.com
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