Saturday, November 13, 2010

Prepaid Trading - IV

Life, they say, is the art of possibilities!

If that is so,

Trading with options is nothing less than the dance of possibilities!

And when you know that buying an option guarantees

"unlimited profit, limited loss"

then why not dance this dance!

My friend Rishant is real good at this!

In his words

"In life as well as trading, it is not what 'IS' that is exciting!

What's really thrilling is the thought of what 'CAN' be!"

Every month he sets aside a few thousand bucks for this "thrilling gamble".

He doesn't smoke, he doesn't drink, he is not a spendthrift either.....

but he does spare some money for this!

He calls it "lottery in the dalaal street"

Every month he buys this "lottery ticket"

He buys a cheap stock option for the next month series

of a good-stock-in-the-pit

(on the basis of technical analyses of 1 year chart)

of a strike value "what CAN be" instead of "what is"!!!

He bets for the seemingly impossible!

He bets for the opposite!!

Amazingly, more often than not, the opposite is what that has been happening

(albeit to different degrees!)

and over the months, he has surely become the artist of possibilities!!!

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