How to Start an Online Trading Business with Options
Most people have heard of the concept of trading as a business." You've heard the expression maybe so many times that it has become insignificant to you. Well, it's time to take a fresh look at the concept of starting an online trading business, this time with options.
Options offer us an opportunity to start with small capital. Options also allow us to gain experience by trading in many different instruments at once, therefore increasing our learning curve. How is that? Options offer you leverage. You'll have to put up a small amount of capital in order to participate in a large number of stock shares, versus trading the stock itself. You can trade more, therefore you can get better at trading more quickly. Granted, you have a trading plan and use small position sizes.
And when you buy by phone, your risk is limited to the amount of money you put into that option. So you can control your risk more. Position sizing correctly will be a critical component of your long-term success in options.
The key to setting up your own online trading business with options is to have a "Business operations manual.".
If you've ever owned a franchise, you'll know that you receive a business operations manual. The operations manual is their system! It's kind of like a way more complicated trading system!
A franchise has its own system. It's a duplicatable system. Their system gives you a high probability of success. Notice that franchises don't guarantee your success because that's not how life works. The same applies to a trading system. A trading system can put you in a high-probability position for success, but nothing in life is guaranteed. I have to say this because there has been a lot of bad marketing in the past by bad trading marketers, which has gotten people thinking in the wrong ways.
Owning your own online trading business can be one of the most financially rewarding and time-rewarding businesses there are. The problem is that most people do not take an online trading business seriously. They think that because so little time is required, they don't have to treat the little time they do put in as super serious. So they get distracted, and they simply leave potential six, seven, eight, nine, or 10 figures on the table.
Wealth is built into status over time.
If you start with step one and start building now, potentially when you treat trading in a serious way and be very systematic with it—coldly systematic in fact—then you could potentially grow a massive fortune over time with the proper use of compounding of options in combination with a very solid trading system.
So by obtaining your own "business operations manual," which is an options trading system in this case, you can get a blueprint for your trading business that could apply for decades to come. When you use a system that is built upon the fundamental laws of price action, the price action depicted on price charts, carefully tied in with Human DNA, core human behavior, you could have a system that can stand the test of time. We aim to make those systems available here at OptionsWeeklyPaychecks.com.
For example, what if we use a solid options trading system that could produce 40 options points of profit a year?
These are option profit points, not stock profit points. If we could do that on a consistent average, then if we traded 10 contracts, that would be $40,000 a year (we're not considering compounding at this point yet). A good options trading system can usually produce such a return on a stock at around $100 per share. For a swing trading system, the average option price would be about $400 per contract. Stock profit points are usually a little more than double the option profit points.
So if we trade 10 contracts, it would cost us $4000 to purchase that position each time. If you'd purchased the stock, it would've cost $100,000 instead of $4000. And for those of you with smaller accounts, you simply need to adjust your position size, except for the risk that comes with trading too large, which can often cause excessive losses. But since you're talking about starting an online trading business in a real way, you want to keep your money management position size smart.
So if we can make $40,000 a year on $100,000, that's a 40% return. Now, when you use our money management system, you'll be compounding options properly, so that $40,000 could be much larger. Now, thinking in simple terms without compounding our position size, a 40% return year after year is massive. But who doesn't want to compound? Just taking the 40% a year compounded means that the next year we could use four more contracts to trade for 14. In the next year, after we make $56,000, we will be granted a consistent return. Now we would be up to $196,000. Then we can use 19 contracts for trade. If we kept up with the same 40% return, we would make $78,400 for the year. Now we would have up to $274,400 in our trading accounts. See how this grows? But by compounding in real-time, your returns can potentially be much greater. We show you how to do this in our courses.
So, in summary, an online trading business is not only a cash Cash machine but also a net Networth builder as well.
In contrast to a franchise, such as a franchise restaurant, not only can you potentially make a lot more money, but you don't have the headaches of a traditional franchise retail chain store, liability, or have to be on call for that business 24 hours a day.
Also, you don't have to put up several hundred thousand to several million dollars to start a trading business online, as you would a franchise. Plus, with a trading system such as an Options Weekly Paychecks-style trading system, your maximum work requirement could be from a few minutes a day to a few hours per week! And even though the time commitment is small, if you take your online trading business seriously, then it could potentially be better than any other business you could start online.