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Options InvestingThe mentality of many traders is, "Get in and get out as quickly as possible." At CashFlow Avenue feel this mentality is misguided; in fact, we preach the opposite. By pursuing low risk investments that yield consistent profits, and not panicking when the market takes a downward turn, we have successfully created an investment strategy for the long term. A modest profit taken over the course of one month is nothing to write home about. For example, an eight percent return on a $10,000 investment over the course of one month nets $800. In itself, $800 is not necessarily a lot of money. But if a portion or the entire profit was reinvested into the next month, and the next, over the course of a few years, it can really add up. What kind of options investing do we do? We are specialists in the field of credit spreads, a relatively new field in the options industry. Because of its infancy, there are great profits that can still be made in this largely untapped area. Why is this? One reason is that writing credit spreads passes under the radar of more headline-making stocks and options. Turn to CNBC and you can never hear them talking about credit spreads. Our subscribers are not interested in exciting trades or making a quick buck that might not be there tomorrow. Their primary concern is the steadfast dedication to medium returns, and low risk. Only through these factors can real profit be made in a relatively short period of time. The key to wealth building is to find an investment strategy that allows the safe use of compound interest with a a high percentage of winning.
_____________________________________________________________________ Other Articles - Saturday August 27, 2005
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