Jun 30, 2012

Can Anyone Make Money with Binary Options?

As long as you are over 18, you can make money with binary options. All you have to do is predict a market price direction within a given amount of time and you make a nice profit. Lots of professional traders make 5 - 10 binary trades a day and I have seen a lot of guys be profitable on all of them. It is not uncommon if you know how to read chart patterns.

My Live Trades
The reason why a lot of people lose is because they just want to gamble and have fun. There is real money to be made if you are good at it. I recommend only this binary options broker if you want to trade. I only trust them.

You can do the same thing. Just predict if a market price of an underlying asset is higher or lower then the current price over a given time period. It is simple and just requires some knowledge on how stocks move on an hourly and daily basis.

You could easily make $250/day average for a month doing binary options trading.

Speaking to the broader audience, the answer is yes. Anyone can make money trading like this.

The key is to not get greedy. You can do small money trades and make 70% profit within a day. For example, if you think Apple will go up 4$/share within 1 hour, you can invest $100 on that.

If your prediction turns out to be correct and within 1 hour the underlying asset you bet on (in this case Apple), goes up 4$/share and past your strike price, you will earn $70 profit and get back a total of $170 dollars. Binary trades don't require a transaction cost to initiate. That saves money.

To make money, you simply open up 5 to 10 positions of $100. If you predict the stock market correctly and your underlying assets all hit the values that you predicted within an hour, you will double your total money put out. That could be a gain of $1,000 in an hour and since you have opened 10 different positions at $100 each and there is no transaction costs, it makes this a great way to make money. Anyone can do it fairly easily. Don't do super high risk predictions.

On the other hand, if you put your entire $1,000 on one binary option trade and the underlying asset you pick ends up not meeting the criteria of the contract, you will lose all $1,000. Some brokers do refund you up to 15% of your money if you pick a binary trade that is out of the money at expiration. Although, you can exercise an early closure for a percentage of the options maximum earnings. Only a few brokers allow you to do this and one that does give you this tool is the binary options broker I recommend on this site. Lets say you buy a binary option that expires in 1 hour. You know there is going to be a big report coming out that could dramatically effect the price of your underlying asset. To limit risk, close the position early so you don't end up way out of the money.

The early closure payout will change with the market price of your underlying asset. If you had a call touch option that was getting really close to the money, but you were unsure if it would surpass this in time, the value of your trade might result in a profit for you if closed immediately. This tool makes trading much easier and flexible, but you have to be with the right broker. It is a much more simplistic way to make money compared to trying to earn money trading regular option contracts. Just pick a reasonable prediction of what a certain asset will do within a given time period. If it does this, you make your profit. There is no time decay or anything like that. You make money if it hits the strikes in the correct way. You may have it setup so that within a month the stock or forex pairing has to reach past a certain price and below a certain price. If it does, you make a set profit. It doesn't matter how far above or below the stock went, as long as it went 1 pip/point over and under your high/low strikes, the binary trade will return you the set profit. You can set up a trade where as long as the asset price does not go above or below two strike prices, you will make a guaranteed profit. Do this when a stock or underlying asset is not making higher highs or lower lows.

The percentage of profit you get is set when you first enter the binary position and is based on the amount of probability that the underlying asset does what the contract specifies. For example, let's say that Apple is trading at $600/share. If you entered a high/low trade for $300 that required Apple to go beyond $625 and below $580 within 2 months, it might yield a set profit of 60%. That means you make a 60% return on your $300 initial cost in 2 months. The only thing that has to happen is the stock price goes to the high and low price levels within the time frame. Another kind of trade you could do is a simple call binary option. Let's say apple is trading at $600/share, but this time you want to invest $600 that the price will go up to $605 within the next day. You can structure a trade where you earn about 85% profit if that actually does happen to the asset value. So, to answer the question if anyone can make money trading options like this, the answer is yes. You just need to predict the correct direction or volatility of a given underlying asset. You can do it with forex pairs, indices movement, stocks, or commodities. Additionally, the broker I recommended above has an entire mobile app so you can trade binary options on your smart phone. Using these financial instruments is risky, but you can minimize your risk and maximize your probability of profit by making correct decisions based on your knowledge of the market, trends, and what may happen to cause price movement. Since there are no transaction fees with binary options, you can set up many small value trades that all can yield profit. The more you set up, the more diverse you have made your strategy and have given yourself many chances to make a profit. It is all about structuring and knowing why you are doing so. Base it on the price history and upcoming events that should result in a movement to go higher, lower, or sideways. You can make money on this for sure. Be analytic about it and use your common sense to enter into positions. Be free and earn profit.

Passive Income with Affiliate Programs

This is an extremely fun and silent way to earn a lot of money in passive form. When you get into positions with your website where you have lots of traffic for a certain type of person, monetizing with affiliate programs is going to be major in making money while you sleep. The reason why I choose this method over advertising with ads on all my website projects is because it offers much higher earnings per click and still requires you to hold no inventory or do any processing.

Realize the value you provide to the vendor/merchant when you can get them steady sales. That is why it requires no work by the affiliate. You just get paid a commission on every sale that is made from anyone who clicks through your affiliate link or banner. It is completely a passive way to make money.

You could literally build a blog, write some very controversial or helpful piece of work and throw some affiliate ads up for that target audience that would most likely read your content. Just like that, you can now make hundreds of dollars per day just from doing the work once of building the content on that page. Make money per sale is a much better way to earn the big money without have to have millions of visitors.

On top of that, if your blog is referring people to high-quality affiliate products, that means they will like your resource even more because it has helped them find something of use that may have otherwise bought somewhere else. To make this passive income idea even more passive, you could hire people to write for you. The income potential makes it worth paying for a consistent stream of really good content. It will pay off in the overall life of your online business.

There are other ways to turn affiliate programs into lots of money. Lately, Google has been including a lot more YouTube videos in their search results. If you can get some really great YouTube videos up that are going to solve a popular problem that people have or provide some form of entertainment value, you can throw your affiliate ads up there and just collect commissions when people buy. Using a video as your form of delivery might be more fun for you compared to writing and it is a more personal form of delivery.

When people see you face to face and listen to you explain or do something, it makes you more credible and what you have to promote will receive a higher conversion rate. Posting videos is a fairly simple task that can be streamlined if you have a simple video camera or smart phone. Since there is not much written content in the world of posting videos, you have to make your title have words in it that many people search for on a regular basis.

The primary way to define passive income is being able to create something one time and benefit from it financially for years to come, without having to do any more work with it. Another way to look at residual/passive income is earning money by doing actions that you would normally do even if you were not getting paid for it. Don't think this is like working at your job. How many of you would go to your job if you didn't receive a penny for your work? That is a true sign to gauge if you are happy with your job. Would you do it for free?

For me, writing is something I did for many years before I ever had a website. It was something I did for free for a long time just because I liked it. Writing on a blog and promoting affiliate tools and different strategies to make money online has been a great way for me to channel what I love to do into money. I don't have to do much else. Just write and watch the commissions roll.

Next Post in Series: My First Passive Income Report Ever

Jun 29, 2012

The Smallest Thing

Alright, so you may have pondered this concept at one point or another in your life. It probably came up when you were learning about atoms and stuff. The problem enters when you try to define the smallest things. Most would either say it is the parts that make up an atom or space is infinitely small. Both are not correct given the theories out there.

This is not to say that I or anyone knows the true answer to what the smallest thing is. At the level currently being studied, it requires only theory to describe the physical appearance of space at that level. After explaining what I am going to try and explain, you will see that at a certain depth down into space, time no longer applies and we are surrounded by quantum foam, which makes up everything.

Sizes of the Length of a Given Space



Researchers have deduced, from combining the general theory of relativity with quantum mechanics, that when you go down to a size smaller than a Planck length (10-33cm) space begins to dissolve into a froth like substance that has no real shape. As you know, when you view an object from farther away, it usually looks smoother. When you move closer, it gets more shapes and bumps, as it becomes more clear. This is true with quantum foam. When you view this section of space at a size of 10-12cm it looks very smooth. As you move closer to this level of space and down to 10-30cm you start to see a rough surface.

Now you might ask the question: What makes up the parts the make up the small structures that are bumpy. This is a problem that we are trying to deal with. The space we are looking at almost has no dimensions so it is not like we are looking at anything in particular. Think of how small the Earth is compared to the size of space that makes up all the galaxies that we can see around us. This is how small quantum foam would be compared to the size of an atom. It is at a very tiny level. It is what is nothing. That means, if you look at the space in-between atoms, and keep looking close enough, this is what some theorist are saying you would see quantum foam.

As you know, atoms make up everything. We are talking about a substance that is a factor of 10 times smaller than the space between an atom. This is what basically makes up everything at a very microscopic level. Could this be where Heaven is? Could this answer the questions everyone has about the universe and how it was created and works. It might explain why everything works like it does. It could explain why gravity works, why we are able to survive, and why matter interacts like it does.

Is The Universe Made from a Quantifiable Pixel in Theory and Does this Scale Up?

Here is another way to think about this idea. A planck length has recently been considered the smallest unit that makes up everything else. If you were looking at a computer, the pixel would be link a planck length if the entire universe were a computer screen. They all combine together in order to build the universe. Another sort of theory that this builds on is the uncertainty principle, which tries to describe what happens to bits of matter that can't be physically observed directly.

So now it looks as though quantum foam is sort of the literal building blocks of all space and all that we know and see. One thing that might be interesting to think about is that possibly our entire universe is like a pixel in the larger picture of another universe. If observers, or living beings in that so called Universe were trying to describe the Universe we are living in, they may describe it as quantum foam or observe it as a foam like pixel that they are unable to really see close enough to tell what it is, let alone go into it.

Are we in Quantum Foam of Another Universe? and Do Our Souls/Conscious Minds Move to This Kind of Space When We Die?

Where does this stop? Is the quantum foam we are observing really an entire other plane of existence or universe? When you start to think like that, things feel very weird. Our current knowledge and technology are not currently strong enough to know exactly what the truth is, but we are trying to find out that is for sure. One may theorize that at a scale that is so small where space starts to fizzle, it could be the scale that our spirits exist at. That is to say, maybe our souls have a mass and our consciousness moves to a different space that is not physically observable by us while we have physical mass that is so large compared to the fabric of space/time.

Developing Your Self-Awareness

Let's try to apply the smallest thing to how it can help you grow emotionally. One way this has helped me is by allowing more awareness to what is truly important. Why should we be so worried about money, different events, and the views of others? You can see what the insane forces of the Universe must hold and how much of a part are we playing in this whole thing. You might as well have fun while you are able to interact with this kind of matter. Maybe there is a purpose of us having to be born and die, but maybe it is just the result of random events that stem from quantum foam type theories.

The only truth that we really  know about life is that we don't know anything. This was said by Socrates back in the day a few thousand years ago and I can still say this confidently now. It is a very good truth. You know what though? Socrates found out the truth once he died by means of actually experiencing what happens. Good or bad, right or wrong, whatever happens is the truth and we are far from understanding anything about anything.

Building Financial Wealth

This concept applies to any business or individual. If you want to grow your monthly income, which is the most important thing you can do, it takes discipline and hard work that is sustainable. The easiest way to work really hard on something for many years is by loving it. Find something you love to work at, learn more about/explain to others about/learn more for yourself about and it can turn into lots of money over time. Everyone needs to accept this reality. The probability that you find a way to generate over $25,000 in real net income per month or more within a month or a week is very low. The chance that you do it working on something that you really don't enjoy very much is even lower. It is possible to expect your entity (yourself or your company) to grow into a money making machine with 8 months to 3 years.

That is a good time frame to shoot for. The type of money that I am talking about earning is far different compared to money you earn from working at a job and getting a set paycheck. I will explain why.

How can you increase your wages from a job? You have to beg for more money, get promoted to a position that has a higher hourly rate/yearly salary, or get multiple jobs. This is not very time efficient or healthy to experience, and yet 99% of the people in the United States do this.

Now ask yourself: How can you increase your earnings if you own the methods of value delivery associated with those earnings? All you have to do is keep building more value, raise awareness to your brand, and play with the system that you own in order to make it more profitable. This can be fun and allows you to be more in control of how much you can make. Obviously it can be difficult to find ways that people will give you money, but new ones are thought up every day.

Earlier I was speaking about building a mechanism that earned you $25,000 profit per month before tax. This is only going to be attained by an average person (has not won lottery, inherited company, etc...) if they work hard at developing something of value that other people are willing to pay for. Saying it and being able to successfully do it are two very different things.

Is This Going to Fit Your Strength? (Monthly Income Potential: 50k+ per month)

If you know you can work hard at writing a blog and building a helpful resource about topics that interest you, the path that will yield the highest probability of success is going to be starting a blog online. Doing this is not super instant money making, but it is a lot less risky than starting a brick and mortar business and can yield profits that would allow anyone to live comfortably, pay off all their bills without stress, and have some extra spending money to play with if they wanted a new toy (or car). This is a way that many thousands have been able to earn money money from and can build your personal wealth.

It takes about 8 months on average to really see the money come in, but that is only going to happen if you work at least a few hours on your project everyday for that 8 month period. This is a good time-frame to use because the internet usually reacts slowly to new things, until they are of real value. Once you have shown the world that your resource you created provides use to others, it will explode.

Don't get all A.D.D. on this either. You need to think of one project to start with and figure out how you are going to make it successful. It might involve many different aspects, but they all need to relate in some way. The internet allows you to be very creative and plays to the strengths of individuals who like to build and create.

Monetizing a resource online such as a blog or website is fairly simple. All you need to do is focus on making each of your posts useful and helpful. Don't correlate what you are writing about directly to your monetizing strategy unless it makes sense to. The easiest way to explain how to do it is build content and then put a completely separate page on your site that is specifically designed to give people the option to buy products or services that correlate to the industry that your content most closely matches. You can easily sign up for free affiliate programs from all over the internet in order to have the delivery method to get paid when anyone goes to your page and buys something from it through the links you set up.

The reason why I spent so much time on that wealth builder is because it is fast and requires the lowest amount of capital risk (under a few hundred dollars per year). Almost anyone can make it work. You just use your own life experiences and motivation to write unique ideas and thoughts that you think will help others and get paid for it by way of affiliate commissions. I recommend a good web hosting company on my page at the top about Internet Marketing Tools. The first thing on there is a really good web hosting service. I think it is like $3.50/month or something. You can't find a lower initial investment cost for such great rewards anywhere else.

Other Ways to Build Wealth

Well, anything that you can do to help others is going to help you make money. What are you really good at? If you have some qualities that are completely unique to you, spread them around to anybody you come into contact with. Sooner or later, you will find a system that allows others to pay you for what you can do for them. If you don't want to be generous with your value and hide it from the rest of the world, then go get a job. This will be a way where you don't have to think about how to raise more income. You can simply trade your time for a paycheck. If that is worth it to you and makes you happy, go for it.

The very enlightening thing to think about is all the opportunities that are out there. Spreading value is a very abundant action because when you help others, they absorb that benefit. That never dries up and every single person could do it in this world and the economy would be booming because of all the great value be generated by everyone.

You have to get out of the mindset of doing one specific thing and getting paid for what you did. Instead, just start helping people in some way that you know plays to your strengths. No matter what it is, just be generous with your knowledge and abilities. At first, it might seem pointless and not rewarding, but it can create important relationships and connections for you that result in value coming back to you in other ways. These ways have good chances of bringing money to your bank account. That is what we are talking about in this post. Getting more money into your bank account every month, instead of losing it.

Discipline Builds Your Wealth

Another important factor in building wealth is your ability to know what is worth spending money on and what is worth passing up. If you are living in a state of generous value creation, you will find that you don't really need that much material entertainment. Having the best car, latest video game, the best television, or the highest end technology device (tablet, phone, etc...) will not make you more happy. It might for a second when you first get it, but this is not sustainable and only creates the urge for you to have more and get something that is better.

If you are content in doing what you do on a daily basis, without using your money to entertain you, it will really make a big impact on your bank account. Once you have enough money in your account, you can start seizing very good opportunities. When you have large amounts of cash, that means you get things at a discount because not a lot of other people can compete with you in order to force a fair value for an investment.

In real estate, this is huge. Owning a lot of rental income producing properties that was acquired for a really good price, is another gem in your monthly income goal to create lots of wealth. You won't be able to own anything if you are spending all your money that you make on things that you think will make you happier, but 9 times out of 9 don't.

Do things for fun that are free or very inexpensive. Drive to the beach and hangout. Exercise outdoors or at the gym. I have found that doing physical exercise in any form is really really good for anyone physical and psychological health. You may not want to simply workout at the gym or run around in a straight line, but if you like doing sports, swimming, or other activities that requires exertion, they can really help your bottom line and help you become rich in money and emotional well-being.

Getting to a state where anything is good enough for you, creates happiness because you won't be constantly seeking more in order to be satisfied. Instead, you can be happy doing what you're doing and the motivation for doing more things is just the joy you get from doing it instead of the end reward.

That is how I view blogging. The motivation for writing is just to help impact more people and help them feel better in their lives. I don't blog just for more money. I do it because it is enjoyable and fulfilling. That is how I can write very long posts and do it consistently. Even though this site is only 10 months old, it will provide value to people for 10 years to come.

Learning More Stuff

The power of simply knowing about more stuff is invaluable. There are literally millions of different strategies that people use to build wealth. You know how I know this? Because millions of people with completely different lives have done it around the world. They simply find ways to set up a system that can be scaled up to generate positive cash flow and do it over and over.

I can't tell you what you should learn more about, but the best place to start is with what you actually want to learn more about. I am going to do this right now. I have a great passion for space, the universe, and how everything works. In order to write about cool ways to think about these ideas, I need to figure out more about it. In my upcoming posts, you will be reading some cool stuff about this stuff.

The reason why you want to learn about things that interest you is because they are more fun to work on. The harder you work on something, the better you will get at it. When you get really good at stuff, there is usually a way to make money from it.

Next Passive Income Series Post: Passive Income with Affiliate Programs

Binary Options is Like Sports Betting

Alright traders. There is a lot of people out there doing binary options trading on many different platforms. To try and explain what this is a little better, I want to compare it to betting on sports. Basically, the only difference is that with options you are watching assets move rather than the score of a game. It is very similar in concept and how you value the risk.

If you are watching a basketball game, the chances that one team will beat the other can be related to the chances of a stock reaching a certain price or not reaching a certain price in a given time period. So...the basketball game starts. As time goes on in the game, if one team pulls ahead a lot at the beginning, it won't effect the risk as much if you were betting on the team that is down to win. This is just like options. The risk when you are far from expiration is less and as a result, the type of trade you need to structure in order to have it result in a 100% + profit if a true scenario results, would have to be one that requires the stock to move a lot.

Sticking with our basketball game, lets say that there is only 3 minutes left in the game now and Team A is beating Team B by 15 points. If you entered into a bet at that point saying Team B is going to come back and win, this would be very risky given the deficit and time left to recover this. When you structure a binary options trade, it is the same exact concept. When you setup an options trade, you have to pick strike prices that your underlying asset must meet or stay within a certain price boundary in order to be profitable. Then there is the time dimension. This determines your risk. The amount of time that you have for the stock to meet the requirements you set in your original trade. There are weekly, monthly, and yearly expiration times.

One major thing that you need to look at is the volatility history of a stock. If a stock moves up and down a lot, it will be likely that you want to do a high/low where you profit if the stock simply hits the top and bottom strike prices in the given time specified. If you were to watch a basketball game where there were lots of lead changes and they were an average of 6 - 10 points leads, it might be less risky to bet on the team that is down by 10 with 4 minutes to go to win compared to if one team had held the lead the entire game.

An Example of Options Trading on Day of Expiration

These are things to take into account when you begin doing binary trades. The interesting thing about binary options is that you either make your profit or you lose all your bet. It is not like owning a stock or regular options that have price fluctuations. You place your risk (capital) on weather or not the criteria are met or not within the time frame. Lets say you wanted to trade on a day of expiration. You could risk $1,000 on an Apple 600 touch where the actual market price of Apple was $595 that morning. The specified return would be about 250%. What this means is that if Apple stock touch the $600/share price at any point within the day, you make an automatic $2,500 profit on top of your $1,000 that you risked originally. Your new account value would be $3,500. That is how binary options trades work.

You don't have to do that on a daily basis. You can do that same thing, but give the stock a week, month, or even a year to hit a certain level or stay within two price targets. It is much more complex than simply gambling because you have to understand how stock move and the different factors that cause volatility.

If you are going to do exotic trades like binary options, you need to do it with a broker that is dedicated to only this type of trading. You can't do it through a normal stock broker. I recommend the one most guys use at this binary options broker review.

Jun 28, 2012

Learning Binary Options

These trades are based on a true/false outcome result. It is different from trading regular option contracts because you don't make any more profit if the underlying asset moves past your strike prices in the direction that would make the contracts more profitable. With binary options, you have the same basic principles that guide the value of your gains or losses, except it is either a fixed gain or worth nothing depending on if the stock went to the strike prices you bet in your original trade. Hence, the name binary.

There is a whole plethora of ways to trade these kinds of financial instruments. Some individuals might say this is straight up gambling. I beg to differ. It is more like highly advanced stock picking. When you invest in an asset, like a stock, forex pairing, or indices, it is just the same as investing in a binary option. The only difference is the amount of loss you can experience. Higher volatility does not change the basic principle of buying something in exchange for a gain or loss. You just have to hedge your bet more-so in return for high gains than would be possible with a regular stock trade.

Here is rough example of how a binary option trade would work. You could risk $1,000 that the stock price of Apple reaches the price level of $600 within the next month. If it does reach this strike price, you get a fixed gain on your initial investment. So, depending on how far your strike price is away from the current market value, would determine your gain if the strike price is met in the time frame specified in the trade.

To get higher gains, you could do high-low strategies. This would result in a large gain if the stock price went up to a certain strike and down to a certain strike relative to the current market value of the asset. For example if Apple was at $550/share, you would risk lets say $2,000 that the stock price will hit a strike price of $600/share and $525/share within 2 months. If it has this type of volatility, and does indeed to what you though it does and hits both strike prices, you would make about 150% profit. If it does not, you lose your investment completely.

If you want to try doing this, start at my recommended binary options broker.

Binary options just makes day trading much more fun because you don't need as much money to begin risking in order to make a living off of it. Normally, someone who day trades for a company will have hundreds of thousands of dollars. They throw their money in a stock and even if the underlying asset they invested in bounces up a tiny percentages, they can sell and make a decent profit on penny differences. It is safe but requires a ton of money.

For the rest of the world, that doesn't have hundreds of thousands of dollars at their disposal, there are binary options to get into. Once you learn the mechanics that govern their value, it is very fun to do and will allow you to make thousands of dollars per month with fairly low risk depending on your strategies.

With binary options, you sort of trade based on what a stock does in a certain period of time. The reason why it is not gambling is because you can examine many charts, news releases, company earnings, and all the other fundamental and technical analyses that are done to pick entry points on the actual asset. If you do this, you know how to measure that chances that your trade will be profitable.

For example, if you think a stock will trade in a range and not go any further up or down than a certain price point, you can bet on that with a binary options purchase. If the stock indeed does not move up or down far enough to reach either of the strike prices specified in your trade that you set up, you make a double or triple gain, depending on how you structured the trade.

You can also do a trade that bets on the value of an underlying asset reaching a certain high or low in a given period. If the price does go beyond your boundaries set, than you make money. The way to hedge risk is buy different types of trades at different times and sell them when their value is at the highest level.

The safest type of trade to do would be to bet on a strike price being touched within a few month period. It is easy and if you are sure that a stock will hit a price within 4 or 5 months, you can do a low risk trade that may only pay out 20% over the course of this time period, but that is still good, even for an entire years investment compared to the rest of the market.

 

Jun 26, 2012

Most Important Factor in Affiliate Marketing

If I look at all the affiliate programs I am apart of and all the different industries that I promote, the most important thing that every single marketer should be focusing on is quality of said product or service they are promoting. Get customers on the product pages of your promotions and make sure you are only promoting things that are very high-quality. It needs to be well-explained and make sense to use or it won't sell. You will make consistent sales that last for a long period of time and grow. Just look at the famous Apple company. They made quality and were able to keep their prices high because everyone wanted their products.

Higher quality products mean better conversions for you. Affiliates that are pro know that even an increase in a conversion rate of a few percent could mean thousands and tens of thousands of dollars in extra sales per month. It also relates to giving the affiliate much more credibility because they are giving customers the chance to buy things that are truly helpful and great at what they are designed to do. That means people keep coming back to you for the best stuff in whatever industry you are promoting.

It may be hard for you to discern between high-quality products and fluff, so work at it. The best way to tell what you should be promoting is by figuring out if you would buy it for your favorite person in the world, under the condition that that person was in need of a particular solution.

Sometimes, a high-quality product may just need some demand creation in order to become more attractive and give off an immediate wow factor. Look for how the products you are promoting have been working to provide value to their customer base. Find really good services and solutions that not many others are marketing online. Being able to do what is advertised means a ton. Think about it. When you are getting your car fixed, what is more important to you?: The ability of the car place to fix the problem or how nice they were to you? If they fixed your car but were mean, you don't care and will come back because you know they will do the job right. If the place was really nice to you, but your car never was fixed, you will not go back again. The same thing applies to the online commerce world.

People don't care how pleasant and nice you make something seem by writing about it. They want functionality and if the desired products goes up in value if it looks nicer, then they want that too. One thing us humans are always doing is the seeking more for less. How are the products you are promoting trying to give customers more for less?

See these affiliate tools.

Next Post in Series: Building Financial Wealth

Binary Options Trading

Lets try to get our arms wrapped around this type of financial tool a little better. Trading binary options can be risky because it depends on you being right about a prediction. If you like trying to predict things and want some way to be awarded for your efforts, doing these kinds of trades might be something for you to dive into more. The most simplistic way to view it is by saying you would be buying contracts that hold value based on how a certain asset performs within a time frame. They are called binary option contracts because you are essentially buying an investment that is worth 0 or X amount of gain depending on the initial amount of risk that was taken on. There are many options so I guess that is why the name was chosen. Binary options trading is different from regular options trading.

When we add the term "binary" in front, that just means that the option contract you bought is going to be worth nothing or something when it expires. Keep in mind you are not buying any stock or assets in this. All you are doing is betting on the market direction. There are instruments available so you can do bets based on upper and lower boundaries.

Another interesting tool that some brokers allow you to play with is one-touch options. When dealing with binary options, you can do this to lower your risk. Basically, you bet that the underlying asset value reaches a certain point at least one time during the life of the option. If it does, you get paid immediately. You may think of this as gambling a little, but what you are truly doing is predicting what will happen in the market to an asset value.

Many people do these trades and there are lots of ways to set them up so you maximize your probability to get a sizable return with little risk based on a stocks volatility. Check this out. You can even make money if the stock does not hit a certain price point up or down. You can set up things called no-touch options where as long as the stock does not surpass a level, you experience a gain. All of these things give traders a lot of variations to choose from when they are using high-tech financial instruments such as these.

If you want to check out a broker that allows you to do all sorts of binary options trading and was designed specifically for this, see my recommended binary options broker.

An Options Strangle Trade

On a previous article, I talked about implementing a straddle type options trade for a new type of financial tool to use in your arsenal. Now, lets go with a strangle. This type of strategy is a little different because it has lower premiums but still requires large movements in the stock in order to earn a good profit. Since a strangle is riskier than a straddle, it cost significantly less per contract. As previously stated, a straddle is when you buy a call and put with the same strike price, expiration, and underlying asset.

What a Strangle Is:

This is when you buy call and put option contracts of the same underlying asset, with the same expiration, but with different strike prices that are both out of the money. That means you are taking on more risk because in order for either contract value to rise, the stock would have to move a lot in one direction. Since it is more risk compared to a straddle, the value of these contracts is going to be lower compared to at-the-money contracts that have strike prices right around the current value of the underlying asset or stock. It is more risk, but about the same capital risk unless you find a bargain, which is possible.

To maximize profit on this trade, you would want the stock or underlying asset to move way up, and then you would sell the call option contracts, and then you would want the underlying asset to move way down in value in order to sell the put option contracts. If you time it right, you can really make a lot of money, but you need to know about an event or issue that could cause high volatility or movement in both direction of an underlying asset. A good thing to look for would be an earnings beat and then downward bear market pressure to push the stock value down after the earnings spike happened.

Example of Strangle: Lets say Apple stock is trading at $550/share. A straggle position would be to buy call options with a strike price of $600 and put options with a strike price of $500. To be somewhat safe, you want to give yourself time for the stock to move. Allow your contracts to have expirations that are about a month and a half to two months away. That is all you need to do and you have a pretty good structured strangle that just requires stock movement in either direction.

With a strangle, don't be afraid to sell one of the positions if it gets deep in the money and just wait out the other side. A good rule of thumb is to make sure your one position that grows to its highest value first (the put or call option depending on which way the stock went) is worth enough to cover your losses if the other side of your strangle went to a value of 0. Of course you could just sell them both at the same time if the gain on one contract has doubled and the the other side of the position is still worth half. In that scenario you would make a profit.

Difference Between Straddle and Strangle 

To put it simply, the only difference between a straddle and a strangle is that a straddle has the call and put options with exactly the same strike prices and a strangle has call and put contracts with two out of the money strike prices.

If you want to try doing this yourself, there is a good platform that has great tools for experts and beginners. It is designed specifically for options trading. To start trading with them, start at my options broker review. That link explains to traders a type of exotic options trading called binary. It is a little more simplistic than doing full on regular stock options because the underlying asset just has to reach certain strike prices and you get a gain that was set when you first made the financial investment. If the price goes beyond your strike prices, you don't make any extra. It just yields you the gain instantly. Doing this on a daily basis can give you good income to live on if you know the risks and know how to trade on long and short term trends.

Jun 25, 2012

AvaPartner

I thought it would be a good idea to mention which affiliate program I use to promote forex. If you want to know one really great way to start a passive income stream, you might want to start promoting forex trading. It is a 1.5 trillion dollar a day market. I have been doing so a little bit on this site, but since this is a blog about helping others, I thought it would be good to tell others about this income producing idea.

The reason why promoting forex can be rewarding financially is because they allow their affiliates to earn residual income in the form of revenue sharing or offer you high cost per actions if you can't control what type of people are clicking through your links. If you have big money investors and hedge fund managers going through your links, you definitely what to be on revenue sharing. That means if you refer them 1 trader that does big money forex investing and lots of trades, you will make money on every single trade they complete forever. Forex affiliate programs also offer you the choice to pick a CPA, in most cases, so that you make a one time finders fee for every person referred to them by your link. The CPA method would be good if you have a general site or visitor base that is broad. It's perfect for affiliates that can't control who is signing up because it takes some risk away in exchange for immediate one time compensation on each sign-up.

You may think getting into a forex program like this would cost you money. That is where you are mistaken. It is completely free to sign up for so all you are risking is the time to learn how to promote this industry. They paid out over $15,000,000 to their affiliates in 2011. This shows you how big of a market you are getting into. Even though it is big, it is not that hard to break into, because few affiliates know how to promote it in the right way to actually earn enough to make a living off of it.

The big fish (internet marketers) grab up all the money and leave the little guys searching for a commission here and there. You can become a big fish if you do things right. What you need to do is create a forex trading resource that is very useful to traders. It could be a forum or a blog. From there, you just implement the banners and links that AvaPartner provides and you will be able to directly connect people who are interested in this kind of trading with a good forex broker. That is all it takes. Many times you can get good deals when advertising with websites based in different countries and tap into their visitor market share.

Promote AvaPartner with Banner Ads On Websites from Different Countries

Forex is a world wide thing and in order to reach the entire worldwide market, you need to put banner ads up on websites that have a large trader audience and high traffic volumes for a specific country or language. AvaPartner has banners that cater to many different languages.

If you have a little bit of a budget for advertising (couple hundred dollars per month), you could test out some forum ads. This is good because it allows you to control your costs and gain potential long-term traders so that your advertising dollars make you huge profit returns over the course of each year. To do that, plan on spending about $300/month on ad space for different websites. Many big affiliates do this and it works.

To get started, click here to sign up for free with AvaPartner. See what your true website/blog income potential is after a few months of promoting forex with these guys and you will be delighted.

Next Post in Passive Income Series: Most Important Factor in Affiliate Marketing


What to Look for in a Good Options Broker

So you are interested in trading options? One of the most important things you can do, besides learning when to enter and exit a trade, is choosing a good options broker. Online trading brokers work in two different ways. They either provide a little bit of everything with no focus on helping with anything in particular or they are focused on one type of trading and make their platform geared for that.

This is the reason why I would suggest if you are going to do options trading, it is necessary to find a broker that was made for this. Now you know what to look for, but in the real of options brokers, you need to know what to look for.

A Good Options Broker...

1. Allows you to trade with the four main tradable assets (Stocks, Currencies, Commodities, and Indices).
2. Allows traders to buy contracts for Google and Apple among other main global companies.
3. Offers small refunds if you are out of the money at expiration. 15% at least.
4. No fees.
5. Offers trading apps for your smartphone.
6. Offers premium grade support.
7. Makes it fast and easy to trade.
8. Has a highly innovative platform and efficient ways to structure your trades.
9. Provides lots of videos, tools, and guides.
10. Has daily news on the different tradable assets that the broker offers.

All of these things listed above are very good to have. This gives you a higher chance to make money. I would say the most important things in that list would be offering the smart phone app, providing relevant and daily news on all underlying assets in a timely manner, and having an effective/efficient trading platform.

The benefit of using a platform that was strictly made to do one kind of trading will allow individuals to become more profitable and make more money. Don't you want your broker to be an expert on options if that is what you are trading, given all the complexities of this specific type of financial tool?

The Binary Options Broker I Think is Best

Having gone through all of these things, it's time for you to pick your online broker. The online solution that fits this set of guiding rules best would by this binary options broker. You can start doing trades right away with them and the cool thing about an options broker that allows you to trade forex pairings along with the other 3 main tradable assets is that you can trade day and night. A binary options broker is different from trading regular options. In my opinion, it allows you to expose yourself to less risk and make better decisions compared to trading regular options.

Jun 24, 2012

Options Profits

The attractiveness of trading options is huge. It sucks so many traders in because you can get about 20 times the profit with the same amount of money as doing normal trades. Lets say you invest $1,000 in a regular stock or forex pairing and it goes up to say a value of $2,500 within a month. If you would have invested the same amount of money in an options position and the stock or forex pairing position rose in value that much, you would have earned a profit of $30,000.

All you have to do is know when and what to pick. That might sound simple at first, but it's fairly difficult. I would only recommend doing it if you have a proven track record with regular stock investing. Once you have a feel for an individual asset, it will be a little easier to trade options on it.

People fall in love with this dream because it is a really fun hobby that can potentially allow you to make far more money than your job could provide you. On top of that, it takes far less time. You will feel an intense rush while doing these trades and if you like building up, mastering something, structuring risk, and finding bargains, this is going to be a clear strategy to add to your portfolio.

As you can make a lot of money fast, you can also lose a lot fast. That is the inherent risk of the options market. To make sure you are getting in at the lowest possible premium that a position costs, look for the stocks that may look like they are on the brink of a cliff. One easy way to pick high probability put option contracts is to look at 1 year price charts. Locate a stock that has an uptrend that is not possibly sustainable. This is what most traders might call a stock that has an inflated price.

To look at this situation with a direct example, Apple stock price hit an all time high on April 9, 2012 of $636.23/share. The price had started increasing at an exponential curve in the first part of 2012 with incredible momentum. The reason why this is not sustainable is because stocks move in linear lines rather than exponential ones. When you get a big jump, usually there is always a fall back to the linear line or moving average.

If it kept going like it was going, the earnings of the company would have had to sky rocket far beyond what was possible. Knowing that the price had to pull back from this top, it would have been a great idea to buy a monthly expiration put option. It wouldn't even matter what strike price you had as long as it was within 100 points of the actual price. You would have made very good gains.

Even though that case was specific, you can still take value from it because those situations happen all the time with stocks. Patience is required, but when the time is right to enter an options position, you will know. Go with your gut and most likely it will be correct. If you are not sure about something don't risk any money on it because there is no clear pattern of what may happen, don't get involved. Only get into a position if you really know there is a high chance the underlying asset will change in value one way or the other. If you want an entire post about how to do a straddle position, which is basically a way to make money no matter what happens in the stock, check out How to Do a Straddle Options Trade.

Trading options successfully is all about picking your battles strategically. Do this for a years time and you could easily turn your $45,000/year salary into $1,000,000. You could also lose all your money if you can't follow your gut and have discipline.

So, do you want to get started on this right now? If you want to take the plunge, see my recommended binary options broker. Having the right broker is very important. I found the one I just linked you to very helpful. It's top in the industry. Note that a binary option trade is different from regular options trading because it either pays a set profit or nothing depending on if your underlying asset reached or didn't touch certain strike price combinations. If you understand options, they are easy to learn and provide good daily gains.

Signing Up Sub-Affiliates

Welcome to the best and most fun form of passive income. Signing up sub-affiliates is by far the most passive type of income you can make. This is great for anyone who wants to help others earn a living online and still make money themselves. Basically, my whole blog that you are reading is predicated on helping other affiliates earn income. I offer programs to join that have quality products and then my posts are all about how to actually turn affiliate programs into your own money making machine. In the end, everyone wins. People learn how to make tons of money with a website and I get a small percentage of their sales, which does not effect the amount they may earn.

You want to know how to get people to sign up under you? It's pretty simple. Either find out where all the top affiliates hang out and find really good affiliate programs for them to join, or build your own online resource that attracts affiliates. To attract these individuals, you are going to need to provide some kind of free value for them to be interested in what your site is all about. Learn what kinds of things these types of people are interested in, entertained by, and search for online. Then build your site around those things and make a community around it. The social factor is big so try and have some form of open communication on your site so people can talk to each other about what they are doing.

Once you get the credibility and trust, you can promote a set of affiliate programs for people to join. They need to feel like it is a legitimate way to earn money. Also, you have to attract these people to your site and once they are there, you just need to have one page that says "check out these great affiliate programs". Online marketers want information fast and now. They just want the links to the programs and they are ready to start turning them into money.

If you already have a website built for this or ready to become this, then you don't really need to spend any money. All you need to do is build your site into something sweet for online marketing people to be at. However, if you do need a website still, go to my "internet marketing tools" page at the top of this blog and join BlueHost. You can't really get around this. One way or the other, to be successful at this type of business at any level or in any form, you need a blog or site or both. They offer great blog hosting that integrates with WordPress in one click, which is what you are going to want to build. They also have some cool e-commerce options if you want to try and sell your own helpful e-book on top of promoting the best affiliate programs.

There is more you need to do. It is highly important that you stay on top of all the latest information and news that may affect affiliate marketers. One of the most important things to focus on is providing good information about how to rank in search engines. Most of the people who are just starting out don't have a ton of money for resources and need to know how to get traffic for free. The way to do that is by search. They have to know what keyword research is all about.

The basic method that most guys/girls use to make money in their affiliate programs is build a niche site that focuses on 2-4 main keywords and then a bunch of long tail ones. The only way you can help them get results and in-turn make money yourself is by helping them keep working and stay focused. By making a resource like that in blog from, you will get plenty of sub-affiliates working for you in no time. So, if you have not already left, go to my marketing tools page and build a blog for yourself.

If you want to see what my own affiliate sites are, and who knows how many different people are earning money off me by way of this two-tier earnings structure where I am actually a sub-affiliate of other marketers, check out my passive income projects. The first one is actually an e-commerce site I am building in order to drop-ship furniture called Chairosity, but Herbal Showcase is completely an affiliate site in the supplements niche. On that page there is also a good link to the start of my best series I have ever undertaken that is all about passive income. I would suggest you read through all of that to get a grasp on the power of making money in this way.

Next Post in Passive Income Series: AvaPartner (Great Two Tier Affiliate Program)

Jun 23, 2012

Ranking in Search Engines to Make Money

A few posts ago, I think it may have been last week, there was a very comprehensive list that explained some good money making ideas. One of the ways I mentioned was to sign up for affiliate programs and advertise your affiliate products by using PPC programs. Using PPC campaigns like adwords and the many others would be an example of an instant method that cost you lots of money but would get you results that second. If you want another options that is far cheaper, here is an alternative. It takes about 8 months to complete or a few months depending on how good you are. What I am about to explain is one way to build a passive income stream online. I know countless guys who do what I am going to share with you and they are successful with it.

Just read through this whole post so you know what I am talking about and at the bottom of the page, there is a way for you to get started on your income stream project.

So, how do you go about this? If you have never made a sale online in your life, you may think there has to be some secret trick to doing it. I thought so too when I first signed up a sub-affiliate and saw some one else doing 1.5k a month in commissions with his own thing. I though it was awesome and an impossible task for myself. The truth is that all it takes is doing the right things over a little while. Success eludes so many people who are figuring out how to earn a living online because it is not instant if you start cheap with a budget. You don't see instant results.

So, here is how you make this work. To start, you have to pick a niche that you want to sell products for. It could be anything. Possibly, get into digital services and software as a service solutions. Maybe you want to sell a certain type of supplement in the weight loss niche or anti-aging niche. Business might be what you like to follow and writing about a certain type of business industry might fit your style. There are many options.

So, when you have found what you want to start trying to sell, it is time for a website. This is a must and to attain long-term success, register a domain with a web hosting provider and buy the hosting for your first year. These things combined should not cost you over $150/year, which is very cheap for a start-up business. I don't think you can start up any other kind of real business with so much income potential at a similar price. With that $150/year cost, you could easily earn $80k/year. That is the power of a niche website.

So, once you have picked your niche and found a web hosting provider, pick your actual domain name. This is done in the process of signing up for web hosting. You want to choose a domain name with a ".com" ending and try to pick something unique and memorable. If you are going to write about forex trading, maybe you could name your site "yournameforextradinghelp.com". Replace "yourname" with your actual name. Being personal is always a good thing no matter if you are building a corporate website or a personal blog. You want your future website visitors to get a feel for what you are all about and gain their trust. Doing this will make it easy to recommend products that you earn a commission for.

What You Have To Do

Now, I am going to move a little faster. In order to gain traffic, you have to rank in search engines for keywords that have to do with the products you are trying to sell. That means you have to start writing pages of content about your niche or higher someone to do that for you. Target some keywords and just begin. To give you some perspective, 100 pages is a good benchmark to gauge when you should start getting sales to trickle in. Don't put affiliate links in each page that you write.

The professionals will have a website with 100's of pages of unique content all about one topic and find creative ways to have each of those pages include a hyper-link that goes to their  page that actually sells the product you are trying to recommend.  For example, if you were writing about the acne niche, you could have tons and tons of different articles on skin care and all different kinds of information about acne. Then, you may have a navigation setup on the top or sidebar navigation part of your site that includes pages where you review acne treatments. Over time, this will get you sales. The amount of sales depends on a million different factors, but once you have one niche site built, you can repeat the process for other niches.

Doing this website building will get you a lot of free traffic over time that keeps coming. All you have to do is submit your website url to Google one time and maybe send out a tweet or Facebook post about your site 1 time so Google can find it for the first time.

The other aspect you want to do in order to build your rankings in Google, so you can get quality targeted traffic, is build articles outside of your site by using article directories. The best way to build these articles that are on different sites and link into your niche site is by finding an article directory that has all kinds of content specifically about your niche. Make sure your articles are all unique and written by you personally or someone you hired. Unique is important. For example, if I wanted to write about natural health products, I would submit articles to holistichealtharticles.com 

Make sure you use hyper-link text that contains keywords you are trying to rank for. One thing I want to rank my other post for that I put a link to at the top of this post you are reading right now is "money making ideas". That is why at the top I included a relevant link to my other page and used the words that I used. This is the same concept as article marketing except I am linking to another page of mine from the same site instead of another website. 

Build Your Website Into the Most Helpful Resource in Your Niche

Just try to build back links that are from other quality sites by way of article directories. This is the only manual link building strategy that I would use. Other than that, just try to make your website the best resource for your niche. Doing that will attract other bloggers and websites to naturally link to your pages just because they are helpful. That means, another good strategy to do is build very technical articles that guide people on how to do important things that have to do with your website topic. 

What I am Currently Doing to Build Search Engine Rank for my Other Website

I have a health site that has over 450 unique pages on it that I wrote myself. What I am trying to do with it now is rank for terms that have the word "colon cleanse" in it. This takes lots of discipline. So far I have done about 10 unique articles that all promote the topic. This is only a drop in the world of my topic, but since my website has some authority as a result of being indexed in the search engine for 4 years, I know that these pages will help me rank and sell those types of products. Each article is a helpful resource as well. To prove that, I will link you to one of those pages now. It is about colon health and farting.

In order for me to penetrate that market with my website, I have to keep working though. I need to reach about 25 total unique articles about that specific niche and have each of those articles pointing to my landing page the offers users the chance to buy related products.

Motivate Yourself

Nobody is going to push you to do these things. No boss is there to demand tasks be done. The hardest part of doing all this building is staying on track and sticking with your guns. Different things might get you off track, but it is important that you simply push through and know that you will rank in the search engines eventually and make money. Use your job that you hate for motivation. Know that if you can successfully build a niche site, it will replace your income.

For longevity sake, it would be wise to pick a topic that is going to be around for a long time. Think about something people will always be interested in no matter what is going on in the world or what technology is coming out. Maybe it may be topics about outer space, health, personal development, solving worldwide problems, how to live happy, or tips to live a certain way that you believe in. Just tap into your creative side. It is also a good idea to pick a topic that is very interesting to you and something you love to do or learn more about.

ReCap

Start a website, register a domain about that niche, build a bunch of pages on the site about one topic, link to an affiliate product sell page you created that is located on your site, and do article marketing as an initial back linking strategy. To get started with this process, go to my marketing resources page. There you can start a website and get software that helps you with creating unique articles to take some of the load off your shoulders.

Important note about affiliate links on your pages. The reason why you only want one page on your website that has affiliate links that take visitors from your site to the merchant site and gets you paid, is because search engines don't like affiliate links very much. If you have 100's of pages on your site and only 1 page with the tracking links, it will be easier to get traffic. Traffic is the most important thing.

Next Post in Series for Making Passive Income: Signing Up Sub-Affiliates


Jun 22, 2012

Completely Satisfied Yet?

It's funny. Human beings work in a weird way. To put it simply, we are seldom satisfied. Is this a natural genetic force that was instilled in all of us so we keep working toward progress and survival? That is hard to say, but as technology and different things keep becoming larger parts of our lives, it is more apparent that nobody is content with where they are at the moment.

This could easily just be something I am feeling and nobody else may think as I do. Is this true? Are you reading this right now because you need to find something in your life that makes you feel content? I obviously can't answer that. In my own life experiences and what I have observed first hand, it seems like many different people are always looking at the future and what they can do now in order to get to that future. In most cases this thinking never stops.

I believe this: In order for anyone to become completely satisfied, one must choose to be happy with their current life. No matter what is happening to you at this very second or any time that your conscious mind is aware, the only thing that can help you is your own thoughts. This doesn't mean that you should stop working to attain your goals, but you should figure out if the goals you are pursuing are worth it in the end. To figure this out, visualize what your life will be like once you have attained the goal that you live for.

Not everyone is motivated toward a goal. Maybe your goal is to be content. That would be a good one and require only mind effort. Just allow yourself to be happy. Don't think of reasons why there are problems with your life. A lot of this kind of talk really comes down to survival and money. People need money to survive in this world, and most people think if they have plenty of money to survive, then they will be worry free and stress free.

I would disagree with that point. Here is why. If I had enough money to pay all my bills and debt off from college and own a house, and have plenty of passive income to live for the rest of my life without worry of money problems, would this make me content? I don't know because that is not reality at this second. It might be in the future. I think I would still not be content unless I had found a way to really feel a purpose.

Large amounts of wealth accumulated by individuals is done in a positive and 100% joyful way when the method of earning that money aligns with your core beliefs. To turn the actions you sincerely love to do into money making ideas that satisfy your natural human urge to be content, it takes effort at least on a conscious thought creating level. Use your brain to learn and grow. Sometimes it might mean thinking less and just doing what comes natural.

When I was in high school, I would sit at the computer and just type what everyone was saying without anyone knowing what I was doing. It was very interesting what would come up in normal conversation and to put it in words when people did not know I was doing so, made for a very enjoyable night. Lets just say I had some highly colorful friends and the things that were said to one another were hysterical when you read them aloud. I did it for an hour at a time, but I don't remember exactly how long. It was just fun to do. I was not thinking about how much I could write either. It is for pure entertainment value.

During my lifetime, I feel that one really good way that I can help others out without any cost to them is by explaining how something is and really helping them know the feeling. One way I feel more satisfied with my life is by knowing there is some impact that others get from what I write. Most likely I have no idea who is reading these posts, but I do get to feel that feeling of satisfaction when I see visitors and what they type in to search engines to get here.

Let me give you another example. I have been doing some stock options trading over the past few months. What I will do is try to let you know how it feels without you having to actually do it. This is going to help other people who have never done it, know what it is like better and if someone has done this trading and likes to here how other individuals experiences went, it can provide some value to them as well. Here it goes:

When you are about to enter into a position, put or call, you start to feel a very exciting thing happen to you. There is such great potential for you to double or triple your money in a matter of an hour. It is almost addicting to watch the bid and ask prices go up and down. You see your account value sitting at 2k and are trying to get that perfect day trade. In and out fast with little worry.

Once the courage has built up, you can hardly think clearly and you place your bids at what you think is the bottom of the day. Then....you wait. Does the option contract bid and ask get down to your bid. It may not for awhile or it might jump straight to it. After a few seconds or minutes, if you were close to the market value, the trade is over. You now own a position. At this point you may feel great or it may feel like there are lots of butterfly's in your stomach because the value of your account just dropped by 10% in five seconds. That can happen.

Every trader knows if they were patient enough to get in at the bottom or if they entered at the middle or top. If you are in at the bottom, it can get very annoying to sit and wait for the price to reach a level where you have become satisfied with the gains and are not forcing more profit than is ever going to happen. If you are suffering from a loss, it is the worst feeling ever. You want to keep your position alive and let it grow back up to at least what your initial cost was.

On top of all this, you know that there is time decay. If the underlying asset (stock in my case) does not keep moving in the right direction at a fast enough rate of change, you will be at a loss. The feeling is terrible, like you were punched in the gut. When you are on the wrong side of the market and it won't do what you need it to do, it's like studying all day for a big test and then failing the test and as a result failing the class. I would say it is 10 times worse than that. The only other thing that I could describe this anxiety as was how I felt when I first took the ACT back in High School. It was the worst thing and I forgot my calculator. For all intensive purposes, it was like I had died after taking that test. I felt like I did so bad and everything was riding on it (college, good job, etc...) Of course that was before I knew how reality really worked and that the brain washing I undertook growing up in society that trained its people to learn how to follow instructions and be little worker bees, was not how things had to be.

Anyway, getting down fast when you first start trading options feels bad. However, if you can get on the right side and keep doing it, there is untold amounts of money to be made. I have seen people turn $1,000 into $140,000 in a matter of a few months just by doing calls and puts at the right time. Then you will feel like you are on cloud 9. I don't really know how to describe this to you though. I have lost a total of 4.2k in the options trading market so far. Much of those losses were due to holding contracts over an earnings period and missing both times. If I would have never done that, it would be a completely different story.

This 4.2k loss came at a pretty bad time also. I just graduated college and was finally earning some money in my life. I think it would hurt a lot less if I had lost this much after I already had plenty of money and no debt, but what can you do. I do still have one position left. I own 6 put contracts of a July monthly expiration with a strike price of 8 on the stock (RIMM). My initial cost of the contracts was about $40/contract. If this company goes like I think it will, those contracts could be worth a lot of money and I could potentially earn back all the money that I lost. However, we will just have to see how it plays out because there is another month to go. The stock is trading at about $9.86/share right now.

I will tell you that if you are trading options and doing nothing else, you better be doing a lot of trades per day and have about $10k or more to work with because it gets mind numbing when you sit there and stare at one position all day and hope for the best. It is the least satisfying thing you could ever do and I guarantee it gets even worse if you lose money while doing something that is not satisfying.

The best way to actually feel satisfied while doing this is to not put too much emotion into. Just make the trades based on sound decisions and try to put a lot of work into your decisions. That way you feel like there is a little more purpose to what you are doing.

Another thing you have to think about is when you are off by 5 minutes. I have had at least 3 or 4 situations where I was in the money and sold for like a $50 profit. The second I got out, the profit I could have made went up to like $1,000. That feeling is also bad because you just had to wait a few more minutes to make so much more of a profit. I remember the one day I would have made 2k if I just slept the whole day and woke up at the end of the trading day and sold my positions.

Hard work does not always equal success. Smart work is a much better way to go about things.


How a Straddle Trade Works with Options

Most professional options traders who post information about these kinds of strategies try to get you to sign up for something or pay for the information. I won't do that ever. This is a free resource that all traders can come to and learn things for themselves. Right now I want to talk about Straddles. It is important that what I describe is not time or company specific for right now.  The same principles apply, but instead of your initial investment amount moving slowly up or down, your initial investment makes a specified profit that was set based on the chances of your underlying asset reaching the goals. It is either worth nothing or something. You can double or triple your money in 1 day with only one trade. Anyway, let's get into what a straddle is with regular options. It is very similar to a high-low binary options trade that pays if the stock moves to certain strike prices in a given time period.

Binary Option Straddle

Well, with binary options, it is a little different compared to regular options. In binary trading, you can do a high/low, one touch, or boundary trade. The closest thing to a straddle would be the boundary. This allows you to trade a contract based on if the stock price moves between two strike prices for a given amount of time without touching those strikes, or you could set it up so you become in the money if an underlier hits/touches 2 different strike prices in a given amount of time that are higher and lower than the current market price.

Binary options are different than buying normal option contracts. Each binary trade you do is simple. You pick the amount of money you want to invest and then pick the terms of the contract. If the terms of the contract come true, you earn a pre-determined profit (usually between 70% and 200% depending on how risky the trade is). If the contract does not come true, you lose your entire investment (Some brokers refund 15% of out-of-the-money contracts).

Example of a Boundary: The price of the S&P 500 Index (SPX) is trading at 1,350/share. You determine that within the next week, the price of this index will make a high of 1370 and a low of 1340. You can trade a boundary based on those specifications. If it happens, you make your profit. You can do as many of these trades as you want and set them up however you want, but the mechanics are inherently different than doing normal option contracts that let you buy financial contracts that control a set amount of shares.

Most simplistic and profitable Binary Trade

Example of a High/Low: With high/low binary options, you simply pick if the price of an asset is going to be higher or lower than the current market price within a time frame. That time frame can be 1 hour, end of day, end of week, or end of month. If you do a high/low call, that means you predict the price will be higher at expiration. If you pick a high/low put, that means you predict the underlying asset price will be lower than the current market price at expiration. You get to choose how much money you want to invest in this action happening, the time of expiration, and the profit if you are right is pre-determined.


First I will tell you that straddles are good to minimize risk. Most traders will disagree with that point, but I will explain how it can minimize your risk. It is all about timing.

To start, I am explaining key tips that will be valuable to you in a way that allows you to know what to look for when you are about to initiate a straddle position and what this actually is in the first place. The reason I don't want to talk about any possible trades on a specific underlying asset by way of options is so this post doesn't become out of date. Instead I want anyone to take this information I am going to share for free and be able to use it at any time in the future.

The Straddle with Normal Option Contracts

A straddle is a way to get short and long at the same time. Doing option trading is a tricky balance between risk and reward. You want to be able to throw the maximum amount of money at a trade that will yield the highest probability of making a profit. To do this, it is necessary to find underlying assets (stocks, commodities, indices, or forex pairs) that cause big shifts in their corresponding options when they change in price up or down. You are predicting a stock will be volatile by initiating a straddle.

It is all about making money fast and in a safe way. Untold thousands have been lost because people don't trade with discipline and simply go on a whim. Don't just hope to get lucky. Make trades based on numbers and probabilities. This is the only effective way to trade without thinking of yourself as a gambler. Put work into your trades. A straddle is going to give you good risk-reward benefits depending on what is happening. Use straddles as a specific tool, but not your only one. After you read what this is, hopefully you will be able to decipher when it is a good idea to try doing this.

What a Straddle Is

This is when you buy a call and put option at the same time with the same strike price and expiration. You want to do this when you know the market is going to over react to news. This straddle strategy means you need to buy the contracts that have expiration dates that are right after the news launches. That way, you can  get the most movement out of your option values. Taking stock options for example, if a company is about to release earnings or announce a product launch that is highly anticipated, the price of the underlying asset may move in an extreme way one way or the other. Nobody knows for sure how the market is going to react.

To manage your risk and make sure you capitalize on the large spike up or down, you just need to initiate a straddle right before the news is going to happen. Once the jump happens, up or down, all you do is sell the option that rose in value. Then, you can sell your other position that was on the wrong side of the market.

Psychologically, it is hard knowing that you are going to take a loss. However, people make money when they can accept that they will take a loss with one position, but by having both a call and a put, you will make money on the position that goes up in value. Just make sure you buy your call and puts before the news happens and get into them at there lows.

To make sure you are maximizing your potential gain, enter the put and call positions at different times during the day. Buy your put when the stock is at a relatively high peak during the day and buy the call when the stock is at a low for the day. You can't get it perfect, but even if you can become a little accurate at those entry points, it will allow you to make the most out of your money when the underlying asset spikes in one direction based on significant pending news.

Big pending news is not always going to be released every single day so you should not initiate a straddle unless you know for sure that there is going to be high volatility. It is hard to know for sure, but you can make a good educated guess about potential volatility based on the past. You are actually much safer if you buy puts and calls with different strike prices and expiration during your normal day trading activities.

As a resource, you should choose a broker to trade options with that is professionally made and has platforms for you to use that are simple, yet highly effective. See the broker I recommend by clicking here. That brokers' I talk about in the link, and provide a sign-up portal to are strictly binary options brokers, which are different from trading normal options.

Day Trading Options

This is pretty insane if you have never heard about the types of exotic options available to trade with. When you enter the binary options market, you can trade with HOURLY expiration, end of day, and monthly if you like. This is fast and very entertaining.

You may know a little or a lot about trying to trade weekly options. Usually, this is what a lot of high frequency traders will do because weekly options have the highest volatility. They have not come out with daily expiration yet and I don't think they ever will so weekly's are the most risky, but also can be the least risky depending on how well you are able to reduce your capital risk for each trade.

To successfully day trade a stock and make some good money, you have to know how the call or put option value moves relative to the stock price movement. In the morning there is almost always a lot of movement with stock options. That is because the stock basically sets its highs and lows. You have to try and deduce what the market is feeling about a stock for that day based on what happens in the first few minutes.

In these first few minutes, the options contracts can lose half their value or double in value quickly. Once the big beginning burst happens in the morning, things sort of ease out unless there is a big headline that causes movement up or down.

Another tricky thing about trying to trade these things is there time value decay. At 10am a stock like Apple might be at $550/share. Lets say you own 2 put options that you bought at the beginning of the day when the open was at $552/share. In this half hour the price of the underlying asset, Apple stock in this case, has gone down $2. Does this mean your put option is automatically going to rise in value? The answer might be know. The value of it could go down. This all depends on how many days are left for the option strike price to be reached. I am making the assumption that you bought contracts that were out of the money to start with.

Lets say the option expires tomorrow and the strike price for your Apple put is $540/share. If the price of your asset that governs the value of the contract you own is steadily going down, but is doing it at a rate per hour that is projected to be too slow to reach the strike price, the option value will stay the same the whole day and the next day because of time value decay. Even though the market is moving in your direction, it is only going fast enough to keep the value of your initial investment the same.

The thing that would result in a spike in the value and give you a large gain for the day is if there is a dramatic move in the price during the day that breaks the projected slope that was happening before. These big jumps are good times to sell or buy depending on your position. You want to make your moves when there are big swings up or down and then sell when the stock recovers a little from the big jolt. Finding these jolts is hard so the easiest way to do it safely is just wait till the stock move a large percentage during the day. If you think it has moved as high or low as it is going to go, buy a call or put depending on if the stock is at a very high high on the day or a very low low.

You almost have to look at day trading with the perspective of a day moving average. Usually stocks that are as highly traded as Apple or Google will move with trends and that means they always gravitated to the moving averages, whatever they may be. In most cases, it will be somewhere around the close from the previous day, but if the stock price breaks this level, you could see much lower prices and a downtrend start to form. Don't underestimate the stocks ability to recover back to that previous closing day price.

If you want to try your hand at this and make some decent money on a daily basis, I would recommend that you see my favorite binary options broker. Binary options are less complex to learn than normal options trading and still provide very good gains on a daily or long-term basis.

If you are going to trade contracts however, it gets more complex and you can lose everything in a flash. I would go for the ones that cost about 4.5 - 5.0/contract share or in other words $450 - $500 per contract. Remember, 1 contract represents 100 shares of the underlying stock. You are basically buying 100 options at $5/option. It is just easier for the market to keep track and have open trading by going by 1 contract = 100x. Just move the decimal to the right 2 times and that is your initial cost per contract when you see the bid and asks.

I like this amount of risk because at that four and a half to five cost mark, you are getting medium risk and also good chances to make a substantial gain. Say, in one day you buy $2,000 worth of $4.50 call option contracts. In that day, the price of the stock moves up 1% in the first 3 hours of trading. It is a weekly expiration and there is 2 days to expire. You only need the stock to rise another 2.5% to get into the money. If it moves up that 1%, you will probably see a rise in the price of your contracts to $6 - 6.5/contract. That means in a few hours, if you sold into the strength or up tick in stock price, you just made $600 - $800 smackers. This happens every single day. All you have to do is find a bottom and search for a strike price that allows you to get in for about that $500/contract amount. In the previous case, you would have bought 4 contracts and sold them for a $150 - $200/contract profit.

People get in trouble when the don't know when to sell. This amount of profit should trigger you to sell and wait for another big move in the stock to get into another position. Don't get stuck in the middle of the market where you are entering and exiting at the same underlying asset prices. Trade with discipline and no emotion. You can't let your emotions cloud when to get out. Just set a profit target and if you come close to it, make a move and be alive to trade another day.