Discover 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!"
My new attitude is not because I have surrendered to the stock market and accepted the uncertain fate of my future. I have made a monumental change in my investment strategy.
The world is full of people that fail to see the advantages to covered call writing. My favorite piece of advice I get from these so called market experts is that "covered call writing fails because the market takes away your winners and leaves you with the losers". I find this hilarious. If I enter a trade with the potential to earn 8% for the market calls my stock that means I locked in that gain. Who cares if the stock continues to rise in value, I just made 8% for the month!
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!
Since we have addressed the issue about the market taking the winners, we need to focus on the losers. Please be aware that stocks decline at a faster rate than they go up. People sometimes act on emotions such as fear rather than logic. It is critical that the covered call option writer protect himself in this situation. How does he do this? 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 exactly what your gain will be even before you place your trade. I call that taking control of your investments. The exciting fact is that you can do that reliably because 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. - 23159
My new attitude is not because I have surrendered to the stock market and accepted the uncertain fate of my future. I have made a monumental change in my investment strategy.
The world is full of people that fail to see the advantages to covered call writing. My favorite piece of advice I get from these so called market experts is that "covered call writing fails because the market takes away your winners and leaves you with the losers". I find this hilarious. If I enter a trade with the potential to earn 8% for the market calls my stock that means I locked in that gain. Who cares if the stock continues to rise in value, I just made 8% for the month!
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!
Since we have addressed the issue about the market taking the winners, we need to focus on the losers. Please be aware that stocks decline at a faster rate than they go up. People sometimes act on emotions such as fear rather than logic. It is critical that the covered call option writer protect himself in this situation. How does he do this? 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 exactly what your gain will be even before you place your trade. I call that taking control of your investments. The exciting fact is that you can do that reliably because 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. - 23159
About the Author:
Visit Marc's website for more information on successfully Writing Covered Calls in down stock market
posted by X - Men @ 6:42 AM
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