Kim Reilly - Options Super Trader

For further information about Kim Reilly and his DVD Options Trading Home Study Course, CLICK HERE

THE SEVEN SECRETS

1. Make Investing Your Hobby

In general, hobbies deliver more satisfaction and joy than our careers. By making investment your hobby, you will become
proficient in a short period of time and you will also become wealthy.

If you want to become extremely wealthy, you must let your money work for you.

“The amount you’re paid for your personal effort is relatively small compared with the amount you can earn by having your money make money”. John D Rockerfeller

2. Pay Yourself

To make money you must have money. Deduct 10 to 20 percent from your income as soon as you receive it and store it away. You always manage to find money to pay the bills, so you will find it in order to pay your monthly ‘profit’ as if it were a bill - the first one to pay before the rest.

3. Know Yourself

You are the only one who knows your internal ‘risk profile’. Your financial planner will help determine this, but only you can decide your ‘sleep at night factor’. This is important, as you will see later, in determining asset allocation. First, you must know WHY you react the way you do in certain investment situations.

4. Don’t Try to Outsmart the Market

You must learn to place the long term odds heavily in your favour. Don’t try to swim against the all-powerful tides of wealth creation. Let the long term tides work for you by effortlessly carrying you along to greater and greater wealth.

Following is a quote from Sir John Templeton, who is revered as the most successful fund manager of all time. $10,000 invested with his fund when it first began in 1954 is now worth more than $12 million. Consider what this legendary investor says about using stocks to make your portfolio safer:

“Over a period of 62 years, investing in stocks yielded 10 times as much gain as investing in bonds, CD’s or mutual funds. So the question is: What are you trying to preserve? Are you trying to preserve the number of dollars or are you really trying to preserve the purchasing power?”

“If you’re trying to preserve the purchasing power, its better to be an owner rather than a lender. That’s why in the long run, common stocks are your best protection. In terms of purchasing power, the worst thing you can own is cash. You can’t play safe with cash. If you want to play safe, put it into something that is genuine, something that has fundamental value such as real estate or common stocks…I believe you are far safer with common stocks than with cash.”

5. Never Ask an Encyclopaedia Salesman if you Should Buy an Encyclopaedia

The answer will always be “yes”. This does not mean that all sale people are unethical, but it pays to be aware of any bias. This applies to every area of your life, including Fund Managers, Accountants, Brokers, Course Facilitators - everyone.

6. The Billionaires’ Simple Secret

This secret was shared with investor J. Paul Getty and in essence means if you want to make money, really big money, do what no one else is doing.

“Buy when everyone else is selling and wait until everyone else is buying. This is not merely a catchy slogan, it is the very essence of successful investing”. J. Paul Getty

7. Carpe Diem (Seize the Day)

Or in more modern times and in ‘Nike’ terms, ‘Just do it.’ When opportunity knocks, you’d better run and open the door. Get in the habit of making decisions.

For further information about Kim Reilly and his DVD Options Trading Home Study Course, CLICK HERE

Kim Reilly has used Bourse Data stock charting software for many years, so much so, that he has even published his own set of tips on how to get the most out of it. This is the software package that has provided him all the share and option information he needed to become the successful trader he is noted for.

I use Bourse Data myself. I have found it to be one of the best designed software packages in terms of ease of use, ability to customize charts to take advantage of key indicators and trendline analysis, not to mention Gann & Fibonacci tools if you’re into that kind of thing. One of the things I like the most, is the way you can create groups of “watchlists” that are automatically linked to the relevant chart. It means you can easily scroll down your watchlist, one by one, so that as you hit your down-arrow key and each share is highlighted, your customized chart immediately appears somewhere else on the screen, depending where you’ve decided to put it.

You can also have a number of charts open at the same time, all synchronized. For example, you may wish to compare the Weekly with the Daily chart, which is an integral step in the Kim Reilly success formula. You highlight the share code and your weekly, daily, even intra-day (if you’re on the right plan) charts appear in synchronized fashion.

Another feature of Bourse Data charting that I like, is the ability to save your trendlines, so that you don’t have to draw them everytime you visit a chart. You can draw parallel lines to highlight channeling stocks, horizontal lines for support and resistance levels, or just plain single trendlines. You can also make them any colour you like so they stand out. One thing I would like to see though, is the ability to highlight certain trendlines over others. For example, you may wish to make your longer term trendlines thicker, or maybe a different colour, than your shorter term trendlines.

If you’re into option trading - the derivative instrument Kim Reilly has used to achieve financial independence, then here is where Bourse Data software excels. You can subscribe to live options data and this will give you live option prices, codes, days to expiry, bid and ask, plus a number of other really useful features such as “fair value” based on the Black-Scholes formula. This is important, because the “implied volatility” in an option price can be very influential in deciding whether you’re better off buying or selling (writing) an option, creating a spread, a straddle, strangle etc etc.

In recent times, Bourse Data has added the USA markets to it’s catalogue, although this is only for ”end of day” stock charts and not for exchange traded options. But it’s useful to be able to look at what the SP500 has done overnight without having to access it via the web.

The only downside with using Bourse Data charting software, is that data access is proprietary. You can pay a lot more for expensive charting packages such as Metastock, but then you can download your data from many sources. Using Bourse Data, you’re tied to downloading data from them and consequently, you only have a choice of their monthly data packages.

This being said, I have found the packages quite reasonably priced. They range from a basic “end of day” 20 minute delayed data package at around $31 per month, up to a full live options unlimited dynamic data package of around $120 per month. Combine that with friendly user interface the package provides and you have everything you need for a complete trading experience on the Australian Stock Exchange.

Most of the institutions and so-called “experts” will tell you that option trading is strictly for professional share traders and that you shouldn’t even consider trading options until you have years of experience in the stock market. This is a great fallacy. I can say for myself, that I have hardly traded any shares in my time as an investor and that it is just as easy and often much less risky, to move straight into the options market rather than having to “do your time” in shares first.

Whatever course you choose to take, the one essential ingredient to success is that you follow a strict and precise trading plan. Whether you are a long term “investor” or a short term “trader” it is simply a matter of equipping yourself with the right mix of tools and you will approach the market as a “professional trader” with a high probability of success.

There are three main reasons in favour of options:

1. They provide tremendous leverage
2. Your risk is limited if things go wrong
3. Your potential profit is unlimited

What are Options and How Do They Work?

An option is a contract between a buyer and seller of an asset. They are not limited to shares, but are often used for real estate and other commodities. Either way, there are three main ingredients to an option.

1. The underlying asset
2. An agreed timeframe, after which the option expires
3. An agreed price, usually called the “strike price”.

Options contracts are being “opened” and “closed” all the time. The beauty of options is that you can choose whether to be a “writer” or “taker” of an option contract. A “writer” creates a new contract and sells it to the market. A “taker” on the other hand, buys the option contract from the market. When a writer opens a contract, they are said to be going “short”. When a taker buys a contract, they are said to be “long”.

The taker “buys to open” and “sells to close” while the writer “sells to open” and “buys to close”.

Call Options

A call option gives the purchaser, the right to BUY a given number of shares at an agreed STRIKE PRICE, any time up to the agreed EXPIRY DATE. So if you believe a stock price is going to rise in the short term, you would want to buy (go long) in call options. Theoretically, after the share price has risen, you can still buy the shares at the original strike price and immediately sell them back to the market for a profit. For this reason, call options generally increase in value as the underlying stock price rises.

Put Options

Put options provide different rights. They allow you the right to SELL the stock at an agreed price anytime up to the agreed expiry date. So if you expect the share price to fall, it’s like taking out insurance on the stock, because you can still sell it at the price you “insured” it for. For this reason, put options increase in value as the underlying asset price falls.

Risk Free Investing

Long term investors use put options every day to manage risk. If you bought a parcel of shares for say $40,000 you could take a put option at the strike price you paid for the shares, at an expiry date one year out. To help pay for the put option, you could also write (sell) call options at a strike price above your share purchase price. If the stock price falls, you are protected. If the price rises by the call option expiry date, you may be exercised and have to sell your shares but you will have made a capital gain. In the meantime, you receive tax effective dividends from your shares.

The beauty of both call and put options, is that you don’t have to own the underlying asset to buy or sell them. You are simply buying or selling RIGHTS to something. Because you own these rights, you are effectively controlling the asset without owning it.

Stay tuned for further updates on this most interesting subject….

In the meantime, if you would like to discover a simple system that will allow you to replace your current income source, I thoroughly recommend the Kim Reilly Option Trading DVD Home Study Course.

Get it Here

Kim Reilly was born in a small country town in Tasmania and spent most of his working life in the Australian military. Kim was not born into wealth, but has achieved financial freedom using his own skills. As one of the early graduates of Jamie McIntyre, Kim Reilly was one of the first success stories of the 21st Century Academy Homestudy program. He purchased his first stock market software package in 1997, convinced that he would become a millionaire.  Over the next few years he invested almost a quarter of a million dollars in stock market education, enabling him to develop a trading system that would become his own foundation for financial independance.

After purchasing his first stock market package, Kim searched for the vehicle for accelerating abundance. He found the leverage avilable in option trading. Today, he is a very well respected stock market educator. Kim Reilly has set a new standard for option trading education. A few years ago, every spare minute for Kim was devoted to his newly found passion - educating others to achieve incredible lifestyle through a committed trading strategy.  In this new multi-media program, Kim Reilly shows you the exact technique he uses every time he trades.  He gives some important advice  on one of his CDs, which has stuck in my mind: “It’s not the system that works or fails; it’s the person driving it”.  Many of Kim’s clients have become full time traders inside twelve months, some six months.

In this new multi-media program, Kim Reilly shows you the exact technique he uses every time he trades.  I assure you will get tremendous value from the program.  Owners of Kim Reilly’s program can access a private Options Trading Forum to which you get a full 12 months access complimentary with the Homestudy Program, so you are never left alone by yourself, plus additional customer service support at Options For A Living in case you need it. If you need more, for a small fee you can get a further full 12 months forum support and more.  For this program Kim’s gone back over his best strategies.  You can purchase the program up front or if you budget is a bit tight, on a payment plan, and know you have a full 30 day 100% money back guarantee.  If you choose to order the homestudy program, Kim will show you how to become wealthy.

The dream of achieving financial freedom is alive and well with many people. Recently, Kim Reilly wrote an article on money and the amazing things that happen when you start getting more of it. This is the sort of talk that can only come from someone who has experienced it. Kim is adamant that anyone else can do it too. All it takes is belief in yourself, discipline to stick to his system and commitment to succeed. Financial abundance will flow and the dream will be yours.

For more on Kim Reilly’s Option Trading DVD Home Study Course - 

CLICK HERE

Kim Reilly is one of Australia’s foremost options super-traders. His most notable trade was in April 2003 when he netted $1.8million profit on AMP put options. This doesn’t mean it has always been an easy ride for Kim - I have heard him tell his story. From an option trading perspective though, the positive part is that he has a very high successful strike rate.

Kim Reilly believes that 90 percent of trading success is about psychology. I agree with him. In the end, the decision to trade with real money at the right time all comes back to what’s going on inside your head. You can know all the rules, but doing it in a completely relaxed manner, like you’re just playing a game and don’t care, is another matter. When real money is on the table, it can affect your decision making ability.

Kim is a pioneer stock market presenter. In fact, many of today’s educators have modelled their information on Kim Reilly’s course and some even began their own education by attending one of his courses. As such, Kim Reilly has set the standard.

Universal Trading Solutions is distributing Kim Reilly’s option trading DVD course. The course consists of 20 written modules in Adobe Acrobat format, plus 8 DVD movie presentations by the man himself. You could say it’s the A-Z of option trading. Once all the elements of options have been expounded, the course teaches to identify the entry signals for short term trading which is an essential feature of option trading.

The strategy is divided into two stages. The first level involves identifying weekly and daily trends from charts so that short term moves can be recognized. The second level uses a selection of “confirmation” indicators which validate these moves when they’re about to occur. Combine this with your knowledge of how options work and you have a recipe for highly leveraged profit potential.

The third essential ingredient to the strategy is money management. Using the Kim Reilly strategy you can expect an average of at least 7 out of 10 successful trades, or better. It’s what you do with the other 3 that can make all the difference between success and failure. Recognizing the importance of stop loss limits is vital to becoming a profitable options trader. This is part of the psychology that Kim Reilly is at pains to emphasise. It is essential to have an “abundance mentality” first, if it’s abundance you want.

Kim Reilly has developed a trading system that became his own foundation for financial independence. Since then, he has educated over 50,000 people how to transform their lives. I once heard him say at a seminar, that after his million dollar trade, he gave it all away to a good cause and started over again, knowing he had the skill to get it all back again. Now wouldn’t that be nice.

For further information about Kim Reilly and his DVD Options Trading Home Study Course, CLICK HERE

Kim Reilly