There are two key aspects to investing successfully. Both are equally important. The first is having clear goals and not deviating from those goals. The second is knowing and understanding the type of investor you are.
Goals
To successfully sell put options for income an investor has to decide on their goals. These goals have to be built around levels of risk and how comfortable an investor is depending on those risk levels. Once goals are made, they should not deviate from them. Setting up goals means that an investor understands their comfort level while risking their capital.
Understanding Yourself
That comfort level is what should be used to establish the type of investor you are. Some investors handle risk well. Other investors prefer as little risk as possible. Knowing your level of comfort establishes who you are as an investor. It allows you as an investor to structure your portfolio and your trades to stay within your comfort level.
Combination Equals Success
You can see then that both of these aspects combine to allow an individual to become a very successful investor. As soon as you understand your goals and yourself as an investor you can build a portfolio and setup trades that suit who you are and your goals. This leads to being a successful investor.
Investor Worries About Walmart Stock Collapse
On Oct 14 2015 Walmart stock collapsed 11.6% on news from Walmart management regarding their upcoming earnings and forward guidance on everything from changes to stores to their website to restructuring costs. It was the worst one day decline in 10 years for the stock. It also left behind a lot of nervous investors.
Investor Questions
A number of investors emailed with questions but one investor stood out. She held just one naked put but had a lot of questions as she tried to understand what had happened and why she was in the predicament she faced.
Strategy Article – Learning To Become A Better Investor
Her questions come to the core of investing as I know it and this strategy article is designed around her questions as I discuss learning to become a better investor which leads to consistency of winning trades, reducing considerably losses and the building of a proper portfolio that can withstand any kind of market.
This strategy article is 3600 words in length and will require 10 pages if printed. It is for FullyInformed Members.
Learning To Become A Better Investor – Walmart Stock Rescue Strategy – Oct 30 2015
FullyInformed Members can read this strategy article directly through this link or Members can sign in to the full members site here. Non-members can join here. or read about the benefits of a membership. These types of strategy articles is what FullyInformed.com is all about. Learning how to become a better investor. Learning how to enjoy investing while protecting capital and controlling losses. It is learning about building a portfolio that compounds and grows month after month.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
Internal Stock and Option Trades Links
Put Selling Strategies For Members
Covered Calls Strategies For Members
Profit And Income Strategies Index
Stock and Option Strategies For Members
Stock And Option Trades Explained For Members
Ask A Question About A Trade You Are In