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Thursday, October 15, 2009

HOW I GOT STARTED IN OPTIONS


My name is Daniel Mollat. I have been involved with the stock market and its derivatives for over thirty years. When I started dabbling in the stock market in my mid twenties my main objective was to find an investment system or trading strategy that would give me decent returns and yet be a safe investment for the long haul. Even at that young age I was already concerned with long term planning in my financial future being that I didn't belong to a well-to-do family and I knew I had to fend for myself in my struggles through life. I must admit that over the years I’ve encountered many disappointments and, on occasions, incurred losses as I stumbled and recovered in my learning process. My objective of finding the Holy Grail of investments eluded me constantly but I can say that in the process of my long search I gained a wealth of knowledge about the securities industry and its derivatives.

For a long time I did investments in the stock market and while I was fairly successful in this, with winnings slightly ahead of losses, the end result over a period of time was no better than if I had just left my money in treasury bills or other money market instruments.

Then I tried commodity futures trading for a while and quickly discovered that this arena is strictly for professionals who are deeply immersed in the world of commodities. Amateurs like me had no business being in commodity futures. Finally I got into stock mutual funds. For a while these were much better than direct investments in individual stocks and I was pleased with the returns. But during downturns in the economy and the stock market, mutual funds could take as bad a beating as the market. So on with my search for something better.

It was in the eighties when I discovered stock options. The wealth building properties of stock options truly fascinated me and for the next several years option trading was my main investment vehicle. During the hot market of the nineties my option’s trading activities rode the crest of success until the stock market collapse of 2001-2002. The trading systems that I successfully employed during the hot market days just didn’t work anymore and I suffered heavy losses during this recessionary period. I was trading mostly long positions and it never occurred to me to look at the other side of options trading, and that is, being the seller instead of the buyer of options. During the recessionary years of 2001-2002 I began seriously looking at the strategy of selling options and since then it has been my mainstay investment strategy.

During the past seven years I have been using and polishing my option trading system to the point that I've gained so much confidence in it that I've decided to share the strategy with the general public. I've written a ‘HOW TO’ booklet and it's available to whoever may wish to engage in this lucrative investment system. The end result is an ebook appropriately titled: “STOCK OPTIONS: THE GREATEST WEALTH BUILDING TOOL EVER INVENTED”. As an ebook it is easily downloadable from a web site in the net.

The option selling program outlined in my e-book is the result of my own trading experience selling options over the past seven years. In 2001, before I developed this trading system, I suffered heavy losses when the stock market declined 50 percent in a period of ten months. If I had then had the option selling system described in my e-book and used it during that time period, not only would I have been able to weather the storm but I would have come out winning in the end. I back tested my system to that period and you can see the results here. You can also see my actual current trading performance by visiting the Past Performance Page on this site. You will understand the effectiveness of the system when you come to the part in the e-book where I present actual trading illustrations to demonstrate the use of the three-pronged trading system.

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