How many think the options market is performing poorly?
And how many feel the options market
performance is neutral?
Actually none of these answers is correct. You see, the options
market does not perform, you do. You perform!
Sometimes you perform well, and other times you do not perform
so well. The options market doesnt perform, it moves. It moves
up, it moves down and it moves sideways.
The options market moves along like anything else that travels
in a business cycle. If the options market did perform, then
you would only be able to make money in an up market.
As you know, it is possible to make money in a down options
market, and even in a stagnant options market. Thus it stands
to reason that the market simply moves and you react to it.
So, lets talk about your performance. You have two ways that
you can perform, directly and indirectly.
Directly, you pick your own stocks in the options market. Indirectly,
someone else picks your stocks for you, whether it is your broker
or a fund manager
In the latter case, the fact that you chose someone else to
pick the actual stock does not mean that the responsibility
of a loss is theirs. After all, it was you who chose them.
In the end, it is you and you alone who are responsible for
your performance in the options market. Consequently, it is
your responsibility to become an educated investor.
Years ago, individual investors didnt have to worry about who
was managing their money in the options market. Now, things
have changed as poor returns from money managers and investment
firm scandals have shaken our confidence in these professionals.
To get a better look at what lies ahead, you have to go back
and look at what transpired to get you to where you are now.
From there, maybe a clearer path into the future will become
During the Great Bull Market of the 1990s, many investors,
like you, entered the options market and reaped the returns
of the largest bull market in history.
Everyone, it seemed, made incredibly high rates of return. The
options markets incredible, unprecedented move appeared to
make geniuses of us all - but in actuality, it masked some major
flaws with many industry professionals. It also created a misconception
in the general public that all market professionals were experts.
Suddenly, the bubble burst and those flaws were exposed.
Not only did we find out that most of those experts possessed
more luck than skill, but we also discovered that some had been
cheating us out of our hard earned savings.
Many investors were discouraged with these options market
and to make matters worse, many had lost significant amounts
of money. Not to mention, the prospect of regaining these losses
seemed slim to uncertain, at best.
Furthermore, the very people we normally looked to for help
in retrieving these losses either lacked the talent to recover
them or had lost enough of our trust and confidence that we
wouldnt even entertain the thought of letting them try.