Most people think the markets are too risky and their approach is hit or miss,
pure speculation or worse, gambling.
I don't consider myself to be an 'investor' or 'speculator' or 'trader' in the
traditional sense.
The truth is, and this is exactly how I see myself: I am an entrepreneur.
As an entrepreneur I seek opportunities in the market as well as engage in
buying and selling activities to generate the highest return on my investment
and then simply manage my risk.
My product is options and stocks. I buy and sell them to make money.
All businesses buy and sell to make money - I just do it with stocks and
options.
All good businesses manage based on numbers and ratios - I do the same thing - I
manage by the numbers.
All businesses plan for profits and create opportunities for the largest return
on investment (ROI) possible - I do too, except I create opportunities for the
largest return on margin (ROM).
I know exactly what my maximum profits are going to be before I place a trade. I
don't guess or speculate - I have a plan.
Then I simply manage the position and, if necessary, adjust my positions to
remain profitable - or cut my losses through smart risk management techniques
and collect my profits at the end of the trading cycle (monthly).
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