I am a big fan of Mr. Robert T. Kiyosaki, author of “Rich Dad Poor
Dad” book, #1 New York Times Best Seller in late 1990’s. I read his first
book “Rich Dad Poor Dad” recommended by the speaker of
stock seminar I attended and I got hooked to the rest of the series. In
“Rich Dad Poor Dad” book series, Mr. Kiyosaki mainly mentions about asset
versus liability; money working for us instead of us working for money
etc... Of course, there are many more points but in my opinion, those are
the main ones.
Mr. Kiyosaki mentions the “formula” sales = income in his books. I
agree with this idea. If we don’t sell, we don’t have income. However, to
be a successful sale man, we need social and communication skills. We also
have to conquer shyness and fear of rejection. Without those skills, it
is pretty tough to be a successful sale man. However, thanks to today
internet technology and the US market, we can still be a
pretty good sale man without those skills.
The US
option market is one of the world’s largest and
most liquid. In some cases, the strike price increment is $0.50 with
penny wide bid and ask option price due to extremely heavy volume. This
is an ideal scenario for option trader. The tight bid and ask price makes
it easier to get in and out of the trade. To sell in the US option
market, we don’t need social and communication skills. We only need basic
computer skills and a trading platform we are comfortable with. Buyers
and sellers never meet face to face which takes care of the shyness
issue. The rejection is almost none existence here. We first set a price
we want to sell. If a buyer is interested, the sale is made. If not, we
simply alter the price to a point the buyer agrees upon to make the sale
possible. In a highly volatile market, we occasionally get higher bid
than the price we ask for. I am mainly a seller when I trade option. I
only buy when I have to. Most of the time, I buy as an “insurance” for my
existing selling position. This strategy is commonly known as “credit
spread” or “selling vertical calls/puts”. To make matter more
interesting, we don’t even need to own the products we are selling. They
are available on the street. The trick is to find the right product to
sell. Sound easy? The answer is up to us. If we know what we are selling,
it will be an easy sale to enjoy but if we don’t, it will be a hard sale
to swallow.
To make income, we need to sell. It is up to us to decide what and
where to sell.
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