My name is Dean Roberts and for many years I have made a profitable living from my business.
My business is "Trading" and "Investing".
Trading is a common word that can describe many things. My trading is almost exclusively in options on stocks, commodities, currencies and futures.
Mine is a global business and one that allows me to live anywhere in the world and enjoy some of the finer things in life.
I am also an investor. It has always been my philosophy to diversify one's investments so I own some international property, stocks and even a few bars of gold.
The secret to my success has been having a plan.
I know from conversations with real people, and even some "internet" people, that I have not met personally, that many actually trade financial markets without a plan.
They don't have a plan and because of this, they do not know when to sell their investments. Maybe, (like legendary Warren Buffet) they intend to hold forever - and even if that is so, they need a plan designed specifically to show what to trade and when to trade.
All plans must have specifics on "when" to buy and also "when" to sell. This free course will show you some of the things I do to consistently make money in the options market.
The perfect combination to create your own financial futures, is to combine a little Option Trading, with a little Futures Trading, with a little real stock buying and to do all three in a sensible, scientific, planned way.
Understand that to create income and build capital you must have a plan.
To commence let me refresh you about The Strangest Secret.
Here's how I learned to become a successful options trader.
I was personally invited to meet with one of the most successful options traders ever as a favour from his friend and my father- in-law. He prefers his anonymity so I shall refer to him as 'Fixed Odds Trading Master'. When I first met 'Fixed Odds Trading Master', I found that he repeated the following three part secret again and again and again.
The passing of time and some of my own research has proved this "secret" to be an old and ancient truth, not actually a secret at all, but it is as valid today as it was when it was first understood.
Here's what he talked about:
The Strangest Secret! - The Option Promise & the magic word - Leverage.'Fixed Odds Trading Master' told me.
"If I was in a locked room and given nothing more than a set of market prices every day, I would be able to make a living from the stock market."
Let's consider this for a moment.
What 'Fixed Odds Trading Master' was saying was that he could foretell the future by looking at the present and combining the leverage factor with the strangest secret, to create real cash profits, and do it day after day after day.
Quite a deal if true.
First questions I asked were:
Is this possible? & What figures would he require?
And it turned out to be quite simple. He would need the Open, High, Low and Close prices of shares. Information that is published for free in many newspapers or available free on the Internet.
What could he interpret from these figures?
Fact is these figures are "the market" for any share or commodity, and 'Fixed Odds Trading Master' could interpret such things as
If he had the material he could use Technical Analysis tools like The Bollinger Bands, Stochastic guidelines or Volume depth.
All this from the Open, High, Low and close.His first step would be to turn this data into meaningful analysis.
Simple mathematical calculations that show sustained direction and market interpretation based on the simple fact that the past tends to repeat itself again and again and again.
Don't tell 'em how easy it is!
Confused by the terminology so far?
Don't worry. Everything in this course will be kept simple. In fact, this site (www.financial-spread-betting.com) includes a glossary of everything you need to know about digital options.
Here's one of 'Fixed Odds Trading Master's secrets that can make you good money.
Trends, once established, tend to keep on keeping on.
That's a secret huh? Well no! Not really. But it never surprises me to know that many traders actually lose money because they lose sight of a "trend" and are always expecting it to change when all the signals indicate it will keep on keeping on.
So 'Fixed Odds Trading Master' in his locked room could.
So the question repeated is -
Is it possible then that the market can be brought down to just four figures, The Open, High, Low, Close every day?
And the answer is Yes!
The market is driven upwards by buyers being prepared to buy when sellers are willing to lower their prices and then more buyers are willing to go with the trend and pay more.
And sellers, dropping their prices to acceptable levels that buyers will pay, drive the market down when buyers accept those lower prices.
The more buyers are willing to pay the more a market will rise. The more sellers are willing to sell down to, the more it will fall.
Read into those two statements above the greed and fear that drives the market. Ultimately nothing changes the market except the numbers in the game.
Which numbers you ask?
The numbers of buyers and the numbers of sellers in the market at any one time.
Here's the strangest secret.
100 Years ago in one of the finest share trading books ever written, "Reminiscences of a Stock Trader" (by New York financial journalist Edwin Lefevre,) the story of Jessie Livermore was told. Legend or truth says Jessie made $100 Million dollars in the markets and his principles were all based around three statements.
These are the statements that 'Fixed Odds Trading Master' kept repeating to me.
Emphasizing that 7 out of 10 correct was all that was ever needed to make the market work for you wherever you lived.
Here's what he told me to do and what I did.
Write these three sayings out and stick them on the wall of your office or home.
They are almost biblical in their truth. Jessie Livermore said in today's language is:
.. if you can get things right 7 times out of 10, and if you understand that what is happening is "history repeating itself," you can make a fortune.
There are many other items that you must understand.
Like understanding when to get out of the market is more important than when to get in. And simple money management control to increase your returns or limit your losses.
And knowing which markets to avoid like the plague.
And knowing the value of a good system. For Jessie invented a system that used the basic truths of the market again and again and again. All he used was the Open, High, Low and Close components of the market on both a short and long term basis.
Proof.
Jessie's life proved these truths Yet he started as the errand boy in a stock house and was known as "the boy plunger" when he began to turn his self taught knowledge into profits 7 times out of 10.
His three statements were his secret to success.
They are yours now if you use them.
They are still true. And surely The Strangest Secret you will ever learn.
You are probably asking now if this historical fact can be repeated in today's market place?
And the answer is yes!
One particular area where money can be made in the modern market is in the use of options. Another is spread trading where vast markets can be profited from with small cash outlays. And the third is real stock ownership.
Options work like this. If you believe a share is going to rise, or fall in price, a circumstance exists that can be taken advantage of by buying an option which has a built in strike price.
The money paid, the option-fee is known as a premium and can be cents in the dollar.
A 20 cent premium could control the movement price of a $25 share. When a prediction is proven correct - the 20 or 30 cents premium may have risen to 50 or 60 cents. The owner of the option (you) sells out, takes his profits, and passes the risk on to the next buyer.
An option contract in the USA is 100 shares so a premium price rise of $2 is a profit of $200 per contract. 10 contracts and the profit would be $2000.
Don't know the difference between a Call and a Put?
'Fixed Odds Trading Master' must have been an old soldier, as he told me to remember our days in the army?
Hey what days?
Perhaps not for all of us but 'Fixed Odds Trading Master' says Puts and Calls are like when joining up for National Service. You are in a Call up.
And watch out for the sergeant major. He will surely Put you down.
That's it: - you buy Calls to go up and Puts to go down.
Options give you leverage.
* Cents times thousands create profits when the stock price has changed. The option price follows the share price at variable rates, depending on many factors.
Can't afford to buy $250,000 of shares?
Well take the easy route. Buy options for cents.
Here's the leverage.
Imagine controlling $250,000 worth of shares through options for mere cents of their true value.
Learn how and you begin to see the immense potential leverage of this business.
Option Trading can be learned and I have written a short manual showing some of the secrets to making money every week by trading digital options..
First, let's clear one misconception - The companies that offer these are clearly acting as BOOKIES and hedging the bets with option writers and other traders. These options are referred by a lot of 'flashy terms' - it appears that each time a new company enters the market it invents new stylish/coolish (like binary bets, binary options, digital bets, exotic options, digital options, currency options, spot options, fixed odds financial betting...etc) - all these terms all refer to the same fixed odds product with two distinctive characteristics; the odds in these type of bets are always fixed and there are only two possible outcomes on the expiry date - you either win or lose (i.e. all or nothing bets).
Also to clarify there are three platforms for the readers: there's the Betfair model in which Betfair itself doesn't make a market but lets users make the market; there's the Binarybet model, where the firm just makes the market. And there's the Binexx model, where both the user and Binary.com make a market
This short course show how the analysis is completed and the guesswork is removed by the simple calculations which work on the Open High Low and Close prices; just as if you were in a locked room like 'Fixed Odds Trading Master'; with nothing more to go on than the Open, Close, Low and High.
It's not magic. Just simple mathematical procedures that are all based on the fact that:
I'll post lesson 2 tomorrow.
Great Trading.
Dean Roberts.
Next Page - Lesson 2 - the Language of Money
