What's
this site about?
While the majority of traders hope to make a
profit trading options, we take a more business like
approach and hope has nothing to do with it. Trading
options to us is entrepreneurial. We take advantage of
market opportunities, build positions, manage a portfolio
and generate profits trading options based on:
1) fundamental business principles and
2) market truths
We are not investment advisors or financial planners, we
are retail investors like you. We do not not manage money
and we do not make recommends on any stock or option
investment. We trade our own accounts.
Our purpose for establishing this website is
to provide education to retail investors like us who want a
smarter, simpler, less stressful and more profitable way to
trade even with limited capital.
Business Principles:
We pursue opportunities in the market and then manage
those opportunities based on the numbers. All successful
businesses manage their activities based on certain
'numbers': key ratios, profit and loss, conversions,
overhead and more. That's what we do: manage our investment
business 'by the numbers'.
When a number is 'off' we dig deeper into our business
activities to see where the problem lies and make
adjustments to our portfolio so that we generate the maximum
amount of profits for the capital we invest, just like any
good and successful business. The only thing that matters in
business is ROI (return on investment). In our type of
business, we regard ROM (return on margin) as our ultimate
goal. That is the name of the game and we never deviate from
it because the numbers never lie.
The Only Truths of the Market:
For stocks there is only ONE Absolute Truth:
1) All stocks fluctuate in price.
For options there are only TWO Absolute Truths:
1) All options fluctuate in price.
2) All options expire.
The top traders in the world learn to respect these rules
because they are the only truths of the market.
You might think there are other truths but there aren't -
everything you hear about the market outside these 2 rules
is hearsay, opinion, commentary and even complete fantasy.
We are investing as entrepreneurs - we watch for
opportunities, create a plan for trading activities based on
solid business principles, plot our expected ROM (return on
margin) and then manage those trades by the numbers.
How Do We Trade This
Information?
We take these Market Truths and design a trading strategy
which means taking advantage of market opportunities and
building positions and portfolios around them. As we know
it's impossible to predict the future. The market can be
irrational and cause large losses at times for the average
retail investor. So instead of predicting market behavior we
create "fluid" positions that are managed and adjusted
according to market conditions so that we are always
allocating capital as new opportunities present themselves.
The one art most retail investors are not taught is how to
adjust positions once they are placed. Learning the art of
adjusting trades is the insiders edges over retail
investors- but not any longer. Once you learn how to adjust
a trade so that it makes money (instead of losing money) you
will be amazed at the results.
All businesses have risks. In this business there are 4
risks but the risks can be managed. And, it takes 15 minutes
- sometimes less - a day to manage these types of positions.
If you're interested in learning more about how we trade
as a business and get information on a home study course we
are developing just watch The Videos Above- no email address or registration is
required. We will provide free videos on an occasional basis
so if you're interested in getting notified when they are
available sign up above for our updates list.
Trade with confidence!
(c) 2011 by TradeCashSystem.com. All rights reserved
