This is the Secret to Becoming a Successful Covered Call Option Writer
Wow! I can't believe how interesting the stock market is these days. Many people, including me, have given up trying to predict the direction of the market. Happily, I'm now in the position to say "Who cares!"
This attitude is not due to the fact that I have essentially surrendered to the stock market and relegated my future to fate. I have made a monumental change in my investment strategy.
There are many people who simply don't see the advantages to covered call writing. Here is my favorite piece of advice I often get from these so called stock market experts "covered call writing fails because the market takes away your winners and leaves you with the losers". I find this reasoning seriously flawed! If my stock gets called away and I am left with an 8% return on my money for the month I am thrilled that I locked in that gain. I am happy that I just made 8% for the month so who cares that the stock got called away.
The average investor needs to remain focused on their goal in order to be successful using covered calls. Forget about what could have been. Don't focus on the unforeseen benefits that you never received as this will cause you to lose site of why you entered into the trade to begin with. Consistent monthly returns of 2% to 10% gains will definitely more than make up for any appreciation at you lost when the stock was called away. Making money is your goal, keep focused on that!
Now that we've addressed the fallacy about the market taking the winners, let's focus in on the losers. Please be aware that stocks decline at a faster rate than they go up. Fear and panic sometimes force people to act on emotion and not on logic. It is critical that the covered call option writer protect himself in this situation. How is this done? It can be done rather easily, but the answer is beyond the scope of this article.
What if you can use a strategy to protect yourself when the market goes down thereby locking in those same gains. Think about it, knowing what your gain will be even before you enter into a trade! I call that taking control of your investments. I am here to tell you that you can do that reliably and that I do that very thing month after month.
You must learn how to remain focused on your goal and protect the downside in order to be a successful covered call seller. The secret is in finding a proven strategy that will keep you on track regardless of which direction the stock market is moving in. Now you must make a decision. Do you want to be the kind of investor that continually searches for the next super stock? Or do you want to be the successful investor that reliably builds wealth and becomes rich by utilizing proven, low risk strategies to beat the market month after month?
I've made my decision. - 23218
This attitude is not due to the fact that I have essentially surrendered to the stock market and relegated my future to fate. I have made a monumental change in my investment strategy.
There are many people who simply don't see the advantages to covered call writing. Here is my favorite piece of advice I often get from these so called stock market experts "covered call writing fails because the market takes away your winners and leaves you with the losers". I find this reasoning seriously flawed! If my stock gets called away and I am left with an 8% return on my money for the month I am thrilled that I locked in that gain. I am happy that I just made 8% for the month so who cares that the stock got called away.
The average investor needs to remain focused on their goal in order to be successful using covered calls. Forget about what could have been. Don't focus on the unforeseen benefits that you never received as this will cause you to lose site of why you entered into the trade to begin with. Consistent monthly returns of 2% to 10% gains will definitely more than make up for any appreciation at you lost when the stock was called away. Making money is your goal, keep focused on that!
Now that we've addressed the fallacy about the market taking the winners, let's focus in on the losers. Please be aware that stocks decline at a faster rate than they go up. Fear and panic sometimes force people to act on emotion and not on logic. It is critical that the covered call option writer protect himself in this situation. How is this done? It can be done rather easily, but the answer is beyond the scope of this article.
What if you can use a strategy to protect yourself when the market goes down thereby locking in those same gains. Think about it, knowing what your gain will be even before you enter into a trade! I call that taking control of your investments. I am here to tell you that you can do that reliably and that I do that very thing month after month.
You must learn how to remain focused on your goal and protect the downside in order to be a successful covered call seller. The secret is in finding a proven strategy that will keep you on track regardless of which direction the stock market is moving in. Now you must make a decision. Do you want to be the kind of investor that continually searches for the next super stock? Or do you want to be the successful investor that reliably builds wealth and becomes rich by utilizing proven, low risk strategies to beat the market month after month?
I've made my decision. - 23218
About the Author:
Visit Marc's website for more information on successfully Writing Covered Calls in down stock market
posted by X - Men @ 4:29 AM
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