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An Alternative Strategy To Protect Yourself From Downside Risk And Reduce The Amount Of Money Required To Start

• What If You Want To Generate CashFlow And Be Protected From Market Events Such As September 11, Tech Bubble Burst, Asian Crisis, Share Market Crash etc.
• What If You Do Not Have A Lot Of Money To Buy Shares To Rent Out OR Do Not Have A Lot Of Money To Promise To Buy Somebody’s Shares
• Finance Gurus Call This Strategy “ Spreads“, This Section Will Go Through An Example Of “Bull Put Spread” - Bull Means We Expect The Share Market Going Up
• You Make Money Because You Made A Promise To Somebody That You Will Buy Their Shares If They Ask You To Buy It From Them (You Receive A Small Fee For Your Promise) At The Same Time You Insure Yourself Buy Buying A Put (You Pay A Small Fee For Somebody’s Promise) - Chances Are You Will Keep The Promise Fee If The Market Is Flat/Raising OR You Buy Their Shares From Them At An Agreed Price (You Still Keep The Fee!!!)
• The The Downside Risk Is The Difference Between The Promise You Made And The Promise You Bought
• Cash Requirement: You Only Need To Have The Maximum Possible Loss That Can Occur If The Market Turns BAD

Spread Example

• Say Share XYZ Is $10 Today
• You Promise To Buy XYZ For $9.50 - Your Receive $0.40
• You Buy A Promise From Somebody Who Promises To Buy XYZ For $8.50 - You Pay Them $0.10
• Your Net Transaction Is $0.30 Cash In Your Bank Account
• Say, If XYZ Is More Than $9.50, Nobody Would Want You To Buy Their Shares For $9.50 Because They Can Get Somebody Else To Buy It For More. In Addition, You Will Not Use The Promise You Purchased For The Same Reason - End Of The Day You Get $0.30 For Making A Promise
• Say, If XYZ Drops To $1.00 Because Something Bad Happened In The Market, You Will Have To Fulfil Your Promise And Buy XYZ For $9.50 Then You Use Your Insurance Policy And Sell It Back To Somebody Else For $8.50 Instead Of $1.00 (Current Market Price) - End Of The Day You Lose $1.00 Minus Your The $0.30 In Your Bank Account You Already Received

 Educate Yourself On How To Do It Right

• Where Do I Start? - Free eBook
• The Home Study Also Teaches You How To Set Up Tax Effective Company And Trust Structure To Protect Your Assets And Pay Less Tax
• Master The Stock Market (A MUST For All New Stock Market Investor) - Zero To Hero

This is the strategy that I personally trade. Its one of my favourite strategy, however I am currently looking into CFD to accumulate assets and also covered calls (share renting) for alternative cashflow strategy.