Let’s talk about options for a few minutes.
I am convinced that short-term trading of stock options to take advantage of directional moves in individual stocks or indexes is financial suicide.
We have all heard the disastrous statistics that 90% of all traders lose money.
I am pretty sure that that number is low for short-term options traders.
While we have all heard the story of folks who made 1000% on an option trade, I can tell you that based on my thirty-plus years of experience that’s the exception and not the rule.
My option-trading friends here at Money Map Press, like Chris Johnson and Tom Gentile, look at options a bit differently – and to some success.
They are among the very few elite traders who actually know and stick to a proven method that has made them fortunes as they’ve done here.
There’s much more to the story than what most people know, and I’ll tell you about it so you don’t end up as a broke investor on Wall Street.
Last week I talked about replicating private-equity buyout funds to make a pile of money over time.
Successful private-equity managers find undervalued portfolios to generate the huge returns their investors expect using very similar principles I use to find candidates for the Heatseekers portfolio.
Finding good companies with sound balance sheets at bargain prices and then just letting time do its job is the real secret to life-changing wealth.
We can expand this private-equity equation to more than just operating businesses.
Indeed, that is precisely what the most successful private-equity funds have done consistently to generate the high annual returns that help them attract and keep investors.
Much of the study and effort that went into developing the investing strategy I use in Heatseekers and Max Wealth was the result of studying what rich people did to get rich in the first place.
One of my most significant discoveries was that it was the private-equity folks with their focus on value and time that consistently made piles of money and got filthy rich.
There are a lot more investors on the Forbes 400 list using something similar to a Max Wealth approach than there are short-term traders.
There’s no gimmick to how the top investors keep getting huge returns over and over again, just one completely overlooked method.