Dan’s Anatomy of a Trade (How I “Money Manage”)

SIMPLE To LEARN ! Simple To Be FREE ! Simple To EMPOWER SELF !

This is an example of a “Live Trade” I currently have.

This is AN EXAMPLE of HOW I Am Turning / Managing What Was A TOTAL “LOSER”, into a VERY NICE WINNER !!!!!!

—- and Unless You Know & “Do” this type of INVESTING; YOU have NO BETTER THEN 50/50 % chance of Ever “Winning” (growing), just like “coin flipping” = You buy “x”, You HOPE it Goes Up (but sadly ESPECIALLY WHEN MOST are ALREADY at record highs, the LIKELIHOOD is YOUR “Bets Higher” will FAIL!!! That = YOU LOSE !!!!

——————Now here is my TRADE (s).

Most know Netflix and use it; Many Own Netflix Stock; I ONLY “Write Option Contracts on Netflix, Symbol NFLX each time GETTING PAID !!!!

So Here Goes “the Facts”: ( I will round the numbers, actually UNDER-STATING MY “Returns”/ INCOME and for sake of example will ONLY  speak in “1” contract. So imagine if I did 2 or 5 or 10 contracts each time as anyone can and does do this)

5/20/2014 SOLD a “Call” Contract for NFLX $420 for PREMIUM ( money paid to ME) of $225 with June 2oth expiration date. (THINK + $225 into my account adding to my wealth.  At that date NFLX could be bought or sold for approx. $370.

2 days later as NFLX went up in price to approx. $390, I wanted to “Make More Income from NFLX, so I SOLD another contract, but this time it was a $440 Call that PAID ME an additional amount even higher of $245. The expiration date of June 20th was the same date of the initial  contract. (INCOME NOW was $470).

TERRIBLE THINGS THEN HAPPENED: NFLX JUMPED UP and CONTINUED UP everyday it seemed, getting closer to the $420 my Call contract. Heck it Amazingly JUMPED as high as $450 per share! ——- What a TERRIBLE TRADE I Had MADE, not 1 but 2 TERRIBLE TRADES !!!!! (hmmmm, if those prices stayed the same at June 2oth Expiration day, It would COST ME (I LOSE) about $4,000 !!!!!!!! Oh My !!!!!!!!!!!

So what is one to do ??????? Sit and “do nothing”?????  —– SOLUTION is To Have KNOWLEDGE and Take Charge! I NEEDED TO “MAKE SOME $$$$$ To At LEAST Equalize somewhat or “Lessen” some of my Potential Losses!

6/12/2014 I THEN SOLD a  $405 PUT Contract for $200 with the same June 2oth dates. ($200 Added with the other $470 = $670 cash into my account). — STILL “HURTING” But every $ ADDED helps lesser any losses.

6/19/2014 (1 day before “expiration” and LOSSES would take place) I “ROLLED” (moved DATES UP Adding 1 month of time) to July 18th & ROLLED (moved up) the $420 Price to $430 Price & GOT PAID an ADDITIONAL $$120.  —- and as the Price of NFLX then was approx. $445 in the open market,  my $440 Contract was ALSO “under water” (bad at that time) so I ROLLED That June 2oth $440 UP Up, But ONLY Adding 1 WEEK to June 27 (today) on it with price of $445. This “Roll” PAID ME an ADDITIONAL $225. (ADD the $120 +$225 + ALREADY PAID $670 = $1015 which HELPS LESSEN Potential Losses.

My still active $430 contract was still “under water” and as NFLX DROPPED In PRICE (think this: 10s of MILLIONS of shares was BOUGHT AT $450 by THE REST of THE WORLD that “just follows the so-called EXPERTS advice and BOUGHT HIGH to eventually LOSE).  — ANYWAY, I Again ROLLED : June 24th Moved $430 price to $445 Price and Added ONLY 1 WEEK to that contract, PAYING ME an ADDITIONAL $275. ($275 + 1015 = $1290).

As I write this, NFLX current price is approx. $441. As that STAYS BELOW the $445 Contract price that Expires Today at 4 PM, that one “dies” (think of your car insurance. If you did not “renew” it, at midnight of whatever day you have NO Car Insurance = then think “My Obligation that I got paid for ENDS at 4 PM just as all obligations of YOUR Insurance Company would if your contract with them expires – They work “the same”).

Anyway, so far I have GROWN MY CASH since May 20th approx. $1290 on “just a few little contracts with (after 4 PM) I will ONLY be “committed” (have only 1 active contract) on the July 25 Contract at $445 price.

—— NOW “for me to have a loss at all, the PRICE of NFLX would have to RISE ABOVE $457 by July 25  for me to have ANY LOSSES! If NFLX stays at these prices or even goes up to $445 or FALLS DOWN to WORTHLESS; I GAIN the FULL $1200+ !!!!!!!!!!!!!!!!

If it Does Go Beyond $457 by then, I will Simply ROLL Up Again and PUT MORE $$$$ into my pocket!!!!!!!!!

——- Again: What YOU Likely Do is “Buy” and HOPE & WAIT” that it will GO UP! I Do Not Care WHICH WAY IT GOES (sort of, especially if it moves “only somewhat up, and/or “the slower it moves up”, the better for me ====== I LET TIME WORK FOR ME !!!!!! Most have Time Working Against Them !!!!!!!!!

I should Add these FACTS: If You Bought the 100 shares (which is “1 contract” as I deal with it) THAT 100 shares COSTS YOU = OVER $44,000 !!!!!!!!!!!!!!!

I “control” the SAME “100 shares” & MAKE MONEY EACH DAY using ONLY Approx. $1,200 !  ——–

HMMMMMM- think this “YOU COMMIT OVER $44,000 WHILE I “commit” $1200 !

—- Who Understands “MONEY USE & MANAGEMENT BETTER ??????? Me, YOU And/Or YOUR “Financial Advisor” or BANK or  Mutual FUND or other??????

ADD for YOU “Your COSTS” Besides The “Purchase Money Tied Up” that The FUND, the Company (Wells Fargo, JP Morgan, Bank of America, Fidelity, Scottrade, Your Accountant or CPA, “Joe Blow” the advisor you use, your COMPANY that you MUST “Use” for your 401K, your IRA, your SEP, and others & THINK of ALL “The FUND MANAGERS”, many you see “of fame” on CNBC and Good Morning America, etc. that Get PAID well over $1 MILLION and quite a few that YOU PAID LAST YEAR $3.5 BILLION (with a “B”) !!!!!!!!!

HMMMM, THEY ALL CONTINUE To “Get Paid” by YOU (one way or another with MUCH COSTS and FEES Well HIDDEN- but non the less, they ARE THERE & YOU PAY THEM WELL!!!!!!

Now COMPARE MY “Costs” using This NTLX Example: EACH “Trade” (contract) Cost Me EXACTLY $1.50 !!!! YES, You heard correctly: One Dollar & 50 Cents !!!!!

So MY “NET” (in pocket AFTER “expenses”) amount so far was OVER the $1200 as the “$15 above the $1200 MORE THAN PAID For EVERYTHING I HAVE DONE with “room to spare” (money in my pocket) !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

AND all the while MY MONEY Sits in Cash that I am NOT “using” or is tied up is GAINING INTEREST just like any money you might have in your bank account!

AND Yes, I can have the money anytime! Can  “write checks” on the account, get cash in hand, and all the other things YOU PAY and LOSE $ on! (Think this using the same earlier example of “You BUYING 100 shares of Netflix at a cost of $44,000+ All TIED UP while I tie up ONLY Approx. $1200 and The REST SITS GAINING INTEREST !!!!!!! (or of course I can Do MANY MORE THINGS than YOU !!!!!!! —

Heck for the same $$$ that you Own 100 Shares of Netflix (NFLX) and HOPE it GOES UP in PRICE, if I did the SAME THINGS as I have in this example (remember; I use MY ACTUAL CURRENT TRADES) I could have 36 CONTRACTS GOING. IMAGINE My CURRENT $1200 PROFIT /INCOME multiplied by 36 = $43,000 MORE $$$$$ or In a Couple of MONTHS potentially I could GROW MY ACCOUNT one the same $44,000 as you spent, to GREATER THAN than $45,000!!!!!

NOW, I Would NEVER DO THAT, nor would I tell YOU or ANYONE to Do anything like that (though some do anyway) as I ALWAYS HAVE MANY DIFFERENT TRADES Going On, in MANY DIFFERENT THINGS !!!!!! I Also use Different strategies (ways to grow income and assets) to spread out “risk” and INCREASE “CHANCES of WINNING” EVEN GREATER than I have here in NFLX.  — I also utilize Futures and Options in Futures in similar ways. Also remember: THIS ABOVE Netflix Example is One Of MY “NOT GOOD TRADES”!!!!!! MANY (most) are FAR BETTER !!!!!!

 

As a Conservative Investor, I tend to stay with HIGH PROBABILITY TRADES (I prefer to stay 80+% “odds in My Favor” at LEAST, staying in the 90% range mostly! Yes, I am conservative! I “trade small and often” using SIMPLE “odds” /chance of winning to MY BENEFIT!   — I like to have about 20 or so different things going on at all times, with Opening Trades & Closing Trades happening each day, Monday – Friday! In short ONLY “those with NO IDEA about money Would Ever BUY LOTTERY TICKETS or”Gamble”! (though same of the few I personally know that are PROFESSIONAL POKER PLAYERS with 1 in particular already grossing over $5 Million in his short career so far -BUT HE USES “the same HIGH PROBABILITY of WINNING ODDS that I Use. He ALSO TRADES Options and he often states “how easy it is to WIN from MOST people as MOST do the same in poker as in investing; They Take HUGE RISKS with TERRIBLE Odds of Winning – the average for these people as 99% of ALL people, is Worse than 10% chance of win and often with 1 in 10,000,000 chance of winning. Yep Lottery Tickets and such as Worse than that). Us “in-the-know”  NEVER “gamble – We Invest With GREAT CHANCE of WINNING instead!

CONTRARY to “What THE EXPERTS” (so-called as I and about 50,000 like me, ONLY LAUGH AT ALL “these Experts” and feel SORRY For YOU ALL who NEVER BOTHER “to Learn & Do For Yourself” instead of BEING OWNED & CONTROLLED !!!!!!

—- “The Masses Are Asses” & The Powers To Be LOVE IT THAT WAY !!!!!!! They ALWAYS OWN & CONTROL YOU That Way !!!!  —- Yes 50,000 of us (and GROWING) are “Happy & Free”. Many, as I, Need NOT “work for ANYONE” or even leave my home OR Can Be ANYWHERE in the world ANYTIME to Do The Same !!!!!!!

Life Is AMAZING !!!!!!!

—- And maybe More Than “Anatomy of MY TRADE”; this speaks Just a Little About The MANY OTHER THINGS & WAYS That Give Me FAR GREATER WISDOM, FREEDOMS, Happiness & Boundless Energy!   —— For those who follow; you know I also “teach” guide and help in HEALTH, Education, Relationships (both personal and professional), driving, riding, budget, finance, investing, psychology, sociology, “sex” (many have terrible “sex lives” as they have no idea “really about it”), self defense, career, food both cooking, baking, and choosing, and much more. (i.e. want to learn how to operate a backhoe, drive a snowmobile, build a house, redo your kitchen, design a new tool, and not to be forgotten “sing, dance and be merry”. Yep, I help all who wish to  UNLEASH THEIR OWN VAST POTENTIAL and Evolution! —- Most people “are dying, the day they are born, as they “simply learn to just get by”. I “teach” THRIVING instead !!!

—– By the way: I do NOT “handle other’s money” nor want to! Heck the other day a former student literally walked up to me and handed me a check for $1 Million and said “manage it for me and Each Month I will give You Another $1 million to add to it. Of Course, I handed it back and told him “Instead of ME, I will Help and guide YOU to Handle It For Yourself! You will gain NOT JUST $$$$ BUT so much more than $$$ can buy !!!  Yep, as many have Grown and Learned over the years: So Do My “Friends who THANK ME for LIFE- CHANGING!!!!!!!!! The Smiles and AURAS Around “Empowered People” SHINE LIKE NOTHING ELSE !!!!!

About Warm Hearted World

Extensive - Widely Varied Background ---- Because EVERYTHING CONNECTS TO EVERYTHING & EVERYONE --- For Solutions To All Issues ---- To Make The World A Better Place! (God Must Be Crying!). For Your & Everyone's Health-Wealth-Happiness! Unlike MOST of the World ----"I PRACTICE WHAT I PREACH" (by the way: It is not about religion. It is about LIFE & LIVING! I am NOT YOUR AVERAGE GUY! My Goal & Slogan is: "If I can get everyone to STOP and THINK (really think with an open mind which is RARE) for 5 minutes - I Just CHANGED THE WORLD For The Better".
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