Trade Your Way to Wealth: Earn Big Profits with No-Risk, Low-Risk, and Measured-Risk Strategies
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In Trade Your Way to Wealth Kraft explains a variety of strategies including buying and selling options; covered call writing; collars; using closed end mutual funds for income; debit spreads, volatility-based straddles; ratio backspreads; condors; and calendar spreads. Kraft emphasizes that traders need to first develop a sound and reasonable business plan ? in the same manner that any entrepreneur would plan a new business. Armed with the strategies explained in the book and a solid business plan, traders will have a blueprint for generating consistent profits in a relatively stress-free and efficient manner.
Author’s Introduction:
This book is designed to help anyone—from novice to experienced investor—improve their quality of life and generate increased wealth. It begins with the pros and cons of “buy and hold” investing, which, by the way, is not for everyone. From there, I show you, in step-by-step fashion, how to create your own personal business plan. Successful investors always tell you to have a plan, but this book will show you what your plan should include and how to create it.
With this plan in place, I will then show you a variety of great money-making strategies from zero risk to pretty risky. Unlike so many other books, I try to show you where the risks exist and ways to deal with many of them so that you can invest in a comfort zone. I examine many strategies that explode the myth that option trading is always risky. The fact is that many times option trading has significantly less risk than buying a stock. You will learn how to make money when the market is going up, when the market is going down, and even when it is going sideways. I will even show you how to “insure” your stock positions.
Exchange-traded funds (ETFs) are becoming more and more popular, so we will see why they can be wonderful investment tools and explore when and how to use them to your greatest advantage. We will also see how they should be chosen, when positions should be entered, and what ETFs to avoid.
Since almost everyone needs income, I will show you ways in which to invest in low-risk, high-yield vehicles that you can trade like a stock. Many of the examples will actually be free of federal tax, and I will show you examples where the income can be double tax free—free of both federal and state taxes.
Contents:
- Millions Can Be Made with Safer Trades
- Is the Invest-and-Hold Strategy Best for You?
- Successful Trading Can Be Simple
- How Put Options Can Protect Your Money, and Also Make You Money
- How Call Options Can Really Make You Rich
- Combining Strategies for No-Risk and Low-Risk Trades
- Money Every Month: Earning Income
- Getting an Edge with Exchange-Traded Funds
- What You Need to Get Started
- Comparison of Strategies
Trade Your Way to Wealth: Earn Big Profits with No-Risk, Low-Risk, and Measured-Risk Strategies By Bill Kraft pdf
| Author(s) | |
|---|---|
| Format | |
| Pages | 220 |
| Publication Year | 2008 |
20 reviews for Trade Your Way to Wealth: Earn Big Profits with No-Risk, Low-Risk, and Measured-Risk Strategies
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Zev Rivera (verified owner) –
This book is a must read for anyone interested in investing in stocks. The book is packed with concise easy to understand information of stocks and options with practical examples.
Wyatt Edwards (verified owner) –
Very educational, the importance of a game plan is largely overlooked in the popular literature on the subject. The examples given were easy to follow, without getting bogged down in theory. The Straregy Comparison gives quick comparisons of the popular strateg’s. After reading the book, and reading the other book rewiews I will be looking for other article’s by Mr. Kraft.
Ivy Massey (verified owner) –
Refreshing,Insightful and in LAYMANS terms! Mr. Kraft has incorporated his successful skills of trading and knowledge into a complete and simple field guide. Giving YOU control over your decisions, and helping you to UNDERSTAND the different strategies needed in today’s market. Mr. Kraft has the rare gift of speaking through his book as a trader and a teacher. He communicates honestly and simplistically. Not just a book to read, but a book to KEEP!!
Amani Carrillo (verified owner) –
This book is a definate keeper. I really enjoyed the open straight way in which Bill Kraft presents his stratigies in this book. I was looking to lower my risk and develop more advanced stratigies to my trading rules. This book helped me to do this.
Maddox Moran (verified owner) –
This is a must read! Well written, easy to understand. Mr. Kraft provides strategies for all levels of traders to make consistent money. He also discusses different levels of risk, even no risk trades! This book provides the essentials needed to be a successful trader and makes it look easy. Mr. Kraft is honest in his writing and shares his knowledge from his heart. This is a great book. Anyone serious about trading MUST get this book!!
Quinn Thompson (verified owner) –
I have read many trading books and have been a profitable active trader for many years. Mr Kraft’s book is without question the best book on the market today from which to learn how to actually do the trades and be profitable. Mr Kraft’s emphasis on the importance of entering a trade only when there is a close clear exit is simple but tremendously effective. This book truly teaches one how to become wealthy using systematic, proven strategies. It also teaches one how to implement no risk strategies such as collars to protect assets and achieve a reasonable return. The reason this book is different from the many others I have read is that it teaches one how to actually do the trades in a simple straight forward format rather than discussing theories. Can’t recommed this book highly enough. Mike Beebe
Lillian Giles (verified owner) –
This is a book that needs to be in every traders library but especially the library of a new option trader. There is so much hype in the market place telling folks that they can make ten’s of thousands of dollars in the market overnight. While that is possible, the more likely outcome is the opposite for the uneducated trader. At the end of the day, week, month or bear market it is the ones that take a discipline, steady and educated thoughful path that will be around for the next bull market. Bill’s book offers good advice, some of the best stratagies for a successful trading career. A missing piece for most traders is a successful business plan which Bill covers nicely. I only wish I had listen less to the hype & promises and more to folks like the author. I have the negative signs to prove it but with the Lord’s help and folks like Bill Kraft, I am now turning it around. A strong house is built one brick at a time and a good and successful trader is built one trade at a time. This book will help you be successful and help you stay in the game to see the next bull market.
Promise Lewis (verified owner) –
Kraft accomplishes a no-nonsense, in-depth education for basic and advanced option enthusiasts!
If you enjoy being paid by the market to trade, option traders will appreciate Kraft’s step-by-step examples on how to execute credit versus debit trades, hedging (protecting) and how to adjust or unwind the trade once executed.
As a result of Kraft’s education let me give you my first naked put trades, both which were profitable. .IQYNB with a 23.3% profit in 8 calendar (6 trading) days followed by .FAYNH for a 12.3% profit in 12 calendar (7 trading) days. At the time of the first trade Intermune Inc. was trending up from support which enabled me a $3 credit from a $10 stock. A golden opportunity!
Readers will also find Kraft’s book, The Smart Investor’s Money Machine: Methods and Strategies to Create Regular Income (Wiley Trading) educational for building income strategies with or without options.
Javier Wyatt (verified owner) –
Kraft writes a general but informative book on trading options and managing risk. I enjoyed his folksy style and personal experiences, but his discussion of long-term equity anticipation securities or LEAPS left me confused.
On page 66 he recommends for short-term trades (i.e. a few days) LEAPS that are a year or more from expiration. The bid / ask spread for LEAPS is always much wider than for near-term options. Consequently, it can take several days to recover your spread loss even if the stock price moves in your favor. Unless the stock surges soon after Kraft purchases the LEAP, I can’t see he how he is making a consistent profit. I also disagree with the statement, “… The delta of a LEAPS call is generally higher than the delta of a shorter term call with the same strike price.” (page 67). If Kraft is buying in the money (ITM) calls, as he repeatedly recommends, the deltas of a LEAPS call and shorter term call with the same strike price are nearly the same. For example, today (2/22/2012) Apple computer (AAPL) closed at 513.04. The 500 call has a delta of 0.6339 in March and 0.6188 in January 2014. I spot-checked the options on a number of other heavily – traded stocks and found the same pattern. Since Kraft wrote about 15 pages on LEAPS, I would have expected his text to be more thorough and accurate. The remaining 170 pages, however, provide clear qualitative advice that is generally consistent with more technical books.
Kole Andrews (verified owner) –
If you are reading this book for options trading ideas, it can not be recommended. I was certainly interested in a “no risk” options trade which Mr Kraft presents as the collar using LEAPS. A collar is buying stock and puts while selling calls and with LEAPS it would be looking to use options with at least one year to expiration. I believe it is possible to find collars with time frames of one year or longer that have no risk however — there is a cost – which Mr Kraft does not discuss and the cost may be greater than the risk!!! For example, consider a stock trading at 52, 730 days to expiration, 35% voltility, 5% risk free interest, no dividend. The Black scholes formula values the 50 strike put at $7.04; the 60 strike call at $9.32. It appears that one can make an easy $2.28 (=9.32-7.04) if the stock does nothing and ends exactly at 52; that would represent a 2.28/52=4.4% return. But 1) the cost of holding that stock and buying the put (theres no margin required for selling the calls against long stock) is 52+7.04=59.04*.05*(risk free)*2years = $5.90. The true net return is MINUS 3.62 =2.28-5.90. That does not consider the opportunity cost of tying up your money for two years. There may be some good ideas in the book on the trading plan and generating tax free or low taxed income but there do not seem to be any really good ideas on trading options…
Charlie Gross (verified owner) –
Easy to read, lots of good info
Elsa Hicks (verified owner) –
Well, this book was boring to me and haven’t added almost anything to my useable list of strategies.
Wade Phan (verified owner) –
The book is good and worthwhile. It took too long to receive considering it was supposedly in stock.
Talia Horne (verified owner) –
This book is a must for beginning traders. It is easy to understand and a wealth of information. The author is genuine.
Celeste Abbott (verified owner) –
Long term, I am interested in trading for a living and have learned the hard way just how challenging that is. Currently I don’t trade full time but have come to the realization that having a plan or system with rules to follow is a must. Subscribing to newsletters is good for certain reasons (if you want to stay informed about the market or get some ideas about current trends), but, as Ed Seykota said in Market Wizards, good traders trade and good newsletter writers write newsletters. But I didn’t find that the book lived up to the implied promise of the title of providing a solid foundation for building your own trading system. I got the feeling that the book was used as a teaser to get readers to sign up for one of the author’s workshops or subscribe to his newsletters. There are some good ideas, to be sure, but you won’t end your education in building a trading system with this book. Perhaps it’s because I’ve already read some books on the topic, but I don’t feel like the book advanced my knowledge about trading very far beyond where I was before reading the book.
Liberty Esparza (verified owner) –
After many years of break even, or less success, with option trading, here is the most important guide of all. How to stay in the game, how to avoid loosing money, how to have a winning strategy for up & down markets, and told in simple manner with detail examples augmented by some of the most important guidelines on that most important aspect of trading, namely EXECUTION.How many times have you had trouble fitting a strategy to a market. What open interest do you look for, the importance of Delta, buying more time with LEAPS, option trading ETF’s.It is all there backed up with the experience of that rare breed..A successful Option Trader
Janiyah Pham (verified owner) –
The book is a good introduction to options trading and various strategies using options and ETFs. It by no means identifies a way to earn big profits with no risk or even low risk as the title claims.
Rogelio Griffin (verified owner) –
I wanted to learn about Options. Very good book to start off with, assuming(!!) you already know the difference between a call and a put and how it works in relation to the market and charts! If you read this book, and apply the principals talked about, you will make money. Start slow, gain knowledge. Don’t expect to be a Ad that you made “2.3M at home” because it was easy. The question is ….. are you going to learn this? Or just read it and forget about logic and go back to the ways you’ve lost money on the past. If you don’t have an exit strategy you are doomed. With every trade, have an entry, and exit, and a stop loss BEFORE you enter any trade. Even before reading this book, it’s got to be thought about. Bare minimum. Otherwise, head to Vegas. Maybe you’ll get lucky. There are no magic formulas, just common sense and capital preservation. There’s other good books on the subject, but this is a very good book to start off with. (I’m been trading options part time on my own for over 5 years, have a full time job, but this book gave me new insights) Hey, there’s a lot of good things in this book. It’s just the beginning to a great way to earn more money. Take the time to LEARN before learning the hard way. Good luck.
Russell Bautista (verified owner) –
As someone who is new to trading myself, I find Mr. Kraft’s clear & concise, yet friendly, tone highly appealing. Mr. Kraft’s insights are particularly interesting as he entered the field of trading late in life and has seemingly made a success of this endeavour. He sees it from a more mature viewpoint, thankfully omitting the annoying hype which can permeate a younger man’s insights. This no-bull approach is much appreciated.
Mr. Kraft focuses on share trading and option-type instruments in particular, and as such this book has fairly limited use to me in terms of providing me with strategies I might use very specifically, as my focus is the Forex market. Nonetheless, there is much in the book that is beneficial to the trader as the author shares his philosophy of and insights into the world of trading and these are very relevant indeed. He also provides good advice for the trader just starting out, in terms of getting started correctly and putting in place the right basis for successful trading. He also does not seek to over-complicate things.
I recommend this book, particularly for the newer trader.
Kohen Wilkerson (verified owner) –
I bought this book at the end of last year. I just finished my first reading and begun my second reading with more detailed notes. I feel that I wish I had this book long time ago. I have been treading for many years, but not very successful. I want to improve myself. After reading this book, I felt I learned a lot form the book. I modified my trading plan and fine-toned some charting techniques according to the suggestions from this book. I might post some of my detailed reading notes on author’s newsletter’s forum after a few month of trading.
To make a long story short, I’d say that this book is not for the beginners. It’s not a primer for investment. It better fits to the people who have some knowledge about trading and want to improve themselves. This book lists a lot of detailed trading practices/examples, not the fake stock XYZ as a generalized scenarios. These examples are very useful, at least to me for better understanding the techniques.
At the end, I would say that I highly recommend this book to anyone who want to improve themselves.