I remember a management empowerment session that I was asked to attend by our CIO at the time. As I mentioned, I am a Project Manager for our I.T. Department and one of the things we lack in our department was the spirit of team building. So, in light of that – all the project managers were asked to attend this super uber pick-me-up kind of seminar where he had speakers from all over the globe including Rudi Giuliani, Jerry Lewis, and self-proclaimed millionaires to discuss with us how and why they became successful. It was a great seminar filled with inspiring stories.
I forgot one of the speaker’s name but he was a war veteran from the Vietnam war – let’s call him River guy. He came home after being deployed not knowing how the soldiers are looked at back here in the U.S. He tells his story from when he arrived at the airport in full regalia, thinking that he will be looked upon as a hero. Someone walked up to him, spat on his face and ran. The war was so unpopular that even the troops were not looked upon with respect. He became depressed and decided to move away into seculusion. He went to Colorado and became a boatman for tourists on the Colorado River. He grew his hair and beard almost unrecognizable as a previous soldier.
One day, he was taking a bunch of businessmen on a boat ride. The group wanted to get clost to the rapids as they can and asked him to bring them closer. He was a bit reluctant because he has never done this before but obliged anyway. As they got closer to the rapid, the boat went out of control and they were at the risk of getting caught in the rapids and getting sucked into the tunnel. He asked the businessmen to paddle as hard as they can against the rapids but they couldn’t. He gave up, thinking they were going to die. However, for some miraculous reason, the boat calmly moved away from the rapids and the five businessmen were so thankful to him for saving their lives. Yet humbly, he admitted to them that he didn’t do anything to save their lives.
One of the businessman was so grateful that he said to him, “For saving my life, I am going to make you rich!” The businessman told him that if invests with him, he will become a millionaire. But he said, “I don’t have any money to invest!” The businessman replied, “How much do you have in your savings?” He said, “The most I can give you is $1,000.00USD.” The businessman took the 1K with him… to make the long story short.. after one year, he is now a millionaire.
How did he do this you said? Well, the businessman is a stock broker. Yet with stocks, you need to have a big capital. Let’s day, you want to buy a share from Google – it will cost you $504.00 USD to but 1 share. That would have meant that River Guy will only get two shares of Stocks. It would have been impossible for the businessman to grow River guy’s $1,000.00 to millions. What did he do? He used his 1K to trade options.
What are options? Let’s take a look!
Options are contracts giving the purchaser the right to buy or sell a security, such as stocks, at a fixed price within a specific period of time. Stock options are traded on a number of exchanges, including:
* American Stock Exchange
* Boston Stock Exchange
* Chicago Board Options Exchange
* International Securities Exchange
* Pacific Exchange
* Philadelphia Stock Exchange
Before trading in options, you should however educate yourself about the various types of options, how basic options strategies work, and the risks involved.
I was truly inspired by his talk and has since started learning about options trading. There’s more to learn but I am willing to conquer this – – small investment for large gains? Why not?
Who knows? You may be the next millionaire?
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