Trading options has recently become a new tool in my investment portfolio
Options get a lot of negative press due to the high risks many gambler investors take
If you haven’t looked into options yet - let me introduce you to the WHEEL STRATEGY
1. WHAT IS WHEEL STRATEGY?
Options trading strategy that involves buying and selling options contracts on a particular underlying asset with the goal of generating income
In the process you can acquire shares of the asset at a lower cost basis
This is fairly low risk strategy
2. INCOME GENERATION
The wheel strategy is designed to generate income by selling options contracts
By repeatedly selling covered calls and puts, traders can earn a steady stream of premium income
3. REDUCED RISK
Because the wheel strategy involves both buying and selling options contracts, it can help reduce risk compared to other trading strategies
Traders can limit their potential losses by holding the underlying asset, while also benefiting from potential price rises
4. FLEXIBILITY
The wheel strategy is flexible and can be adapted to different market conditions
Traders can adjust their positions by rolling their options contracts forward, changing the strike price or expiration date, or closing out their positions early
5. LONG-TERM GROWTH POTENTIAL
The wheel strategy can also offer long-term growth potential by allowing traders to accumulate shares of the underlying asset at a lower cost basis over time
This can help generate additional income through dividends or capital gains
6. HIGH RETURNS
Wheel strategy can generate both asset value appreciation and dividend income over time
The investor can expect returns of over 20% per year when all income streams are combined
Opportunities are all around us - at times people need to open their eyes and be happy to try out new things
Use your past failures as lessons rather than set backs
Learn from these, change the inputs and go again!
This is how the greatest success is achieved
Many people dream to retire early yet most don’t see the value of investing into dividend stocks
Yes, the yield might not be as exciting as what you are promised by gurus online
The key with dividend investing - reinvest your dividends and let compounding take care of you
If your life isn’t what you want it to be the solution is extremely simple
GET YOUR SHIT TOGETHER AND CHANGE THINGS
Before you #invest money in stocks and shares - invest a couple of quid into decent books
This little hack will save you a lot in the short and long run
Debt is the topic that often keeps people up at night
For that reason - finding the right strategy to clear your debt should be the focus for anyone
Below are the 5 best ways to get you on the journey
1. Create a budget
Start by creating a budget to track your income and expenses
This will help you identify areas where you can cut back on spending and allocate more money towards paying off your debt
2. Make extra payments
Whenever possible, make extra payments towards your debt
Even small additional payments can help reduce the balance and the amount of interest you pay over time
3. Consolidate your debt
Consider consolidating your debt into a single loan or credit card with a lower interest rate
This can make your debt more manageable and save you money on interest payments
Consider getting a balance transfer credit card for this
4. Prioritize your debt
Make a list of all your debts, including the balance and interest rate
Prioritise your debts by focusing on the ones with the highest interest rates first, as these are the ones that will cost you the most in the long run
5. Seek professional help
If you're struggling to manage your debt on your own, consider seeking professional help
A financial advisor, debt counselor, or credit counseling service can provide guidance and support to help you get back on track
#Investing isn’t for you if you have high #interest debt
Take care of your #debt as a priority. That will be a higher return on your money than most #investments will be able to generate
A simple hack for those looking to start their investing journey:
Most millionaires are made during times when markets are uncertain
Becoming wealthy is a long term goal
Firstly, break it into smaller steps
Secondly, start tracking how you are doing vs those smaller steps and your overall long term agenda
The best investment you can make - in YOURSELF!
Buy books, listen to podcasts, watch educational videos … no matter what you do, make sure you level yourself up daily
Those who work the hardest are later called the lucky ones by those who do nothing to change their lives
One thing you need to remember - you can only control your emotions and your actions
Make the most of any given situation by accepting responsibility and going for the best outcome - don’t blame things on others
The more I travel out of big cities the more I ask myself - do I really want to stay in the city
Every time I go on a holiday or a weekend away I realise why I’m working hard and investing into my future so a 9-5 can become an option
No one know if today is the right day to invest or not …
One thing I can say for sure - #invest today in a broad market index and you will never regret missing on couple of percent of growth
You will regret not starting early enough though
People are often limited by their fears and beliefs rather than the options they have
Be amazing and help someone next to you achieve higher heights than they thought existed before