7 Simples Steps to Financial Freedom and Wealth Building - Step 3

Copyright 2005 William Tan Simple Steps to Financial Freedom and Wealth Building STEP 3: The Best Escape Vehicle - The Trading Business Now that we have set our goals in Step 1, and screened through the possible Investment Vehicles in Step 2, we will be looking at the best vehicle that met all criterions in Step 2. Only 2 vehicles met the criterions in Step 2. These 2 investment vehicles are - stocks and stock options. While stocks just barely made it, stock options comfortably passed the criterions with ease. Using the stock market for financial gain can result in financial freedom or financial ruin. Without even putting much thought, this is one vehicle that has created more millionaires - multi millionaires - than any other form of investments but has also created more bankrupts than all other investment choices. Of all the market exchanges, including commodities, equities, and currencies, the options market has the greatest potential for unbridled profits because it provides leverage that no other market provides. In most cases, leverage is a double edged sword and is normally associated with some kind of borrowing. Leverage magnifies gains but also losses. In the Stock Options Market, leverage is there for all to use - it magnifies gains but limit losses as there is no borrowing involved. While the Options Market provides excellent leverage on investment, it remains as the market with the highest chance of losing money for the na