Why Options Trading – How I started

Newsletter – My Options Trading Unlocked : Insights for Tomorrow’s Profits

About my why!

What is my mission with this blogging and what is the purpose of this website and newsletter?

Why do I spend my time writing a newsletter instead of just trading options full time? These are indeed very good questions, that I get regularly.

Instead of answering this question over and over again, I have decided to write about this in my first mail and explain totally transparent, the exact reasons why I write about my options trading.

Managing my own money to actually earn a profit

It is no secret that the last couple of years (I started in 2019) the interest rates have dropped ridiculously low. Back in December 2020, my bank offered me 0.01% annual interest and a fidelity premium of 0.10% for keeping my money in the account the full year.

If you consider a very low an annual inflation rate of about 1% (inflation in 2022 is close to and even above 10%), I don’t need to explain that I am constantly loosing money leaving my money sit in a cash bank account.

I have been putting my money in a pension investment fund for a tax reduction for many years too.

Analysis of the fund’s yearly results, showed me that I was actually loosing money. The “management costs” alone were higher than the realised profits.

And just like me, so many people are tricked into these kind of unprofitable investments (I am not writing scams because I am staying polite in the choice of words).

Although I have been trading stocks and some options in the past 10 years, it wasn’t until the stock-market crash in March 2020, due to the outbreak of the Corona pandemic, that I have regained interest in earning a larger profit or return on the money I had in my bank account.

I took the opportunity of this large price drop in 2020 to invest some money into stocks again.

Although I had positive results for most (but surely not all) of the investments I have made in that period, I quickly realised again that the outcome of stock investments in general remains so uncertain, even if you stay informed all of the time.

The direction of the market and the stock is so unpredictable, often depending on particular events, that even the specialised press were wrong about half of the time (it just confirms that knows anything).

I was wondering if nobody knows what direction a stock will go, surely there must be a better way to invest money in a smarter a bit more predictable way.

While researching the internet I came about selling options for premium with a higher predictability of a profitable result than trading the stocks themselves.

Mmm… interesting no? It has surely sparked my interest!

And so my journey of earning while learning started in October 2020, when I started actively selling options for premium, in the middle of the world-wide pandemic.

The more I researched and read, the more I was interested. I was hooked.

I have started selling options for premium gradually but I also decided to take action immediately and to apply what I have learned.

And with the results came the confidence that selling premium and generating cash flow by doing option trading is something that I will be doing for the rest of my life.

I realise now that I wish I had learned this when I was young. But it is never too late to learn. (not that I am old…)

And that is what I am doing since then and with a better than just a nice profit.

Sharing what I have learned makes me better

I have always loved to share my experiences in every domain.

There’s an incredible power that comes from writing down and explaining ideas. It makes you reflect and understand the topics you write about so much better.

To explain and publicly analyse my trades and trade ideas brings me clarity and a deeper understanding.

And so the idea grew to share what I have learned and will be learning with other people interested in generating cash flow while trading options.

I do have to add a disclaimer though. I am not a MBA certified financial advisor of any sort (they are probably managing the pension funds… ).

I am 100% self-taught, doing all the studying and research from material found online.

There is a saying that is applicable here in my opinion: “Formal education will get you a job and make you a living; self-education will make you a fortune”. I am working towards that fortune now.

Inspiring people to join in and become profitable

If I can share what I learn and inspire people to join and learn from me and the TOCF community and become highly profitable, premium selling, option traders, my mission is accomplished.

I invest time, energy and some money in promoting, sharing information about my trading. So why do I do it?

Isn’t it more profitable to just do what I preach full time?

Not necessarily, as you will learn and read. I don’t need to be busy trading full time, due to the way that I plan my trades and due to the limitations of the size of my account (just like most of us).

Spending more time trading isn’t necessarily more profitable.

And as you maybe already know, selling premium is also selling time.

So why not also use that same time to share my trade ideas and reflections with others and set it up in a way that people are willing to enjoy and compensate me for my time and efforts.

The information on my website and in the newsletters should make you understand my disclaimer that all the information I share on this website, via my social channels and in the newsletter are provided for reference only and should not be taken as financial advice as such.

Nevertheless I hope that applying the same principles, as I do, will work as efficiently for you as it does for me.

Thanks so much for joining me on my journey to create cash flow and wealth in our lives.

Please never hesitate to add your reaction on my posts in the comments or to contact me by email.

Let’s generate cash flow together!

P&K