Life Success Learning to Create Positive Habitual Behavior & Overcoming Negativity

The first and sometimes most important success habit that must be formed is one of positive thinking. Dwell on the positive exit that's desired and avoid thinking about anything that's not wanted. Nothing will ensure failure faster than the very thought that the failure will occur. People say that it's absolutely normal for negativity to creep into our thoughts. Be that as it may, any negative thought has to be banished immediately and replaced with a positive one. This simple, yet effective technique, practiced regularly can help you move towards success like nothing else.

Forget about the past, it's gone and there's no going back. Regardless of what's happened before, today is a new day. Holding onto the past ensures that you'll stay right where you are in life. Letting go of past failures allows you to see the potential for future success and to move towards it. Realize that any past failures, real or imagined, were purely lessons that you thought to this moment in time. Appreciate the education you received and bravely move towards success with the knowledge you've gained.

Overcome the desire to put things off until another time. For most people that procrastinate, another time never comes. Things pile up over time and there's no way to catch up, adding to frustrations and even more procrastination. Whether it's taking out the trash or calling a client, get to it right away. Only by getting straight to work and finishing tasks can success really be accomplished. Practice this non-procrastinating lifestyle and you'll soon find not only that things are being accomplished, but that you have time left at the end of the day too.

Another important aspect of success is the ability to manage time. It can be very easy to lose track of time and difficult to get back on track. Keep track of everything you do during an average day and how much time it took to do it. Go through an entire week of this. Now evaluate and see what should be adjusted or eliminated for optimal time management. Continue to develop a schedule that allows maximum time for every activity. Include all your business and personal time in this and you'll soon find a workable and even profitable schedule for yourself.

Develop the confidence to go forth and conquer. Knowing a thing can be done and believing you can do it are two entirely different things. It's vital to your success and the success of all of your endeavors that you are confident in your self. Confidence shows through everything you do and it affects your ultimate success more than you think. Carry yourself importantly, speak with authority, be secure with yourself and walk tall. Believe in yourself and your ideas and present them with passion. Do these things and others will recognize your confidence and want to be associated with you.

Success is not a matter of predestination, it depends upon the will of the seeker. With the will to succeed, it's possible to do anything you desire. It really is as simple as that, despite the general tendency to believe otherwise. Over and over again, success stories appear that portrait down and out individuals that executed their own free will to rise above. Exert your will over the situations in your life, change them to suit you and your goals and success will follow.

What is success? Is it money, power, health or spirituality? Success means different things to different people. For some, success can only be seen in the form of financial gain and power. For others, success means a happy, healthy family with only the basics of life. Regardless of how it's defined, success is possible with the proper application of some basic habits and the development of key character traits.

Work From Home - Make Money Online With eBay Store

By now you have probably heard plenty of success stories of people that have managed to utilize eBay to make money. The degree of success varies, but generally speaking there are certainly enough tales of financial gain out there to make anyone with even a tiny bit of entrepreneurial spirit perk up and wonder if they too could pad their income through eBay. The problem that most people run into, however, is that even those with a keen business sense and a natural talent for knowing how to find a make a sale do not typically know the tips and tricks that must be used on eBay to get a leg up on the competition.

While it certainly matters what you are trying to sell, there are other factors that will affect your trends of success. Understand that you are essentially using eBay as a store front and many of the traditional rules of making a sale apply. You have to be able to make yourself available to the customers, show that you can offer a better deal, and generally find a way to attract all of these different consumers to your product. Obviously, if you are not selling anything you will not be making any money; very soon you will most certainly need to begin mastering the different tactics that successful sellers use to attract customers to their listings, but before that you must become acquainted with the most basics of eBay.

What you want to do with eBay will determine how you need to approach the entire of your situation. If you intend to mainly use the service to attempt to try and sell a few items that you just have lying around the house then you might be well served simply by creating a few listings with catchy titles and allowing the bidding to resignation. However, if you are going to be using the service often or to sell several items, you may consider some of the other options that eBay offers. For example, one popular option that is offered is the ability to create an eBay "store".

If you tend to offer items along a particular theme, antiques, for example, then a store can provide users a quick, easy way to peruse your wares and to frequent your offerings on a fairly regular basis. This provides you with the opportunity to have a base of interested customers that are constantly updated on your new items and what you have to bring to the table. Additionally, as with most other eBay items, you do not actually have to offer the listing as an auction; it is completely within the realm of possibility to price the item yourself at the amount you would like to charge using the "Buy It Now" option. You can even offer your customers the option to haggle a bit by allowing them to make an offer; you obviously have the option to refuse this offer, but you might find yourself able to make a sell if you are willing to compromise a bit.

This, essentially, is what you need to know if you are new to eBay- that the basic styles of selling an item are a traditional auction style, where the item goes to the highest seller at the end of a set amount of time, and a very store-like option where you set the price and wait for an interested party to come along and make the purchase. Knowing these things is a good start towards making money on eBay, but these are just the fundamentals.

How you present your item could very well be the key factor in whether or not you are able to profit from your eBay venture. As you know, if a customer is unable to find your item they will, obviously, be unable to purchase it. eBay differs from a traditional store front in a variety of ways, but one of the most significant ways is that customers have to find your item by a text search, usually. This means that there are any number of problems that can occur and make someone who is otherwise interested in buying your item unable to find it.

For example, let's say that you make a spelling error when you list your item. This is going to make it significantly more difficult, sometimes even impossible, for someone who is looking for exactly what you have to offer to be able to find it. Basically, this means that you will have valuable equity locked up in an online limbo because no one is able to find your item to purchase it in the first place. You absolutely have to make sure that you do not make any errors such as this listing your product.

There are other aspects of the title, however, that are immensely important. It is not just enough for a buyer to be able to find your item; you need to try and make sure that they see what you are selling before they see the competition's merchandise. This means that you must be selective with the words that you use in your title, and even quite picky in the order of the words themselves. If at all possible, use Terapeak to try and discover what keywords customers search with to find products related to yours. These are the words that you need to use. Remember that you only have 55 characters so you have to use the most relevant keywords in the shortest space; these keywords are what will help you to be towards the highest results. If you need to communicate something else to a potential buyer you can use the subtitle feature; be aware, however, that eBay does not use this section to check for keywords, so keyword spam in this area is fruitless.

Additionally, you should be aware of the amount of time that an item is on sale for. If you have the item listed as a "Buy It Now" item this is not necessarily as relevant; if there is not very much competition on eBay from similar items it may be that you simply need to wait for the right customer; alternatively, lowering your price might be a good idea. However, the aspect in which you really need to be aware of time is the auction. Many sellers choose to put their item up for sale for the entire duration of seven days. This might seem to make the most sense- after all, the longer an item is for sale, the more opportunities people have to bid. This train of thought while being sound, is untrue.

If you pay very much attention to the various auctions on eBay you will notice that a sort of a bidding frenzy begins to ensue as the item approaches the end of the auction period. Once an item has less than a day remaining it becomes more immediate, and therefore more interesting, to a customer. In the last few hours customers are bidding constantly. One reason for this is the way in which eBay displays search results. An item with less time remaining will appear higher in the search results than an item with similar keywords but more time left. This means that you have the option to use good keywords and put your item on auction for a shorter amount of time to move your merchandise up the list of search results; additionally, you will still be able to attract the feeding frenzy type of bidding that occurs as an item nears its end. You can make the same amount of money in less time by making sure that your item is markeded properly.

Marketing is at the very soul of using eBay to make money. The odds are fairly strong that you will not be in a niche market and that you will have to struggle against competition to be able to really get a foot in the ground. If you are just starting out you can be at a distinct disadvantage against sellers that have been using eBay longer. For example, feedback is an important tool that many use when evaluating whether or not to make a purchase. Without good feedback you are fighting an uphill battle. There are, however, some tricks that can help you to overcome these obstacles and make a move on the competition.

Essentially, you must build your reputation as a quality seller from scratch. While it might be tempting to copy what it is that your competitors are doing, approach this from a customer's point of view. Why would a consumer purchase the exact same item from an unknown seller when they could get the guarantee offered by high positive feedback for the same price? It is not enough to simply do the same thing that your competitors are doing; you have to go above and beyond. To make any progress, you must outperform them.

One of the things that you must consider in the beginning is to offer your product at a lower price than other sellers. It does not have to be significantly lower, maybe as little as five or ten percent. However, a lower price can be the perfect way to sway buyers who might have otherwise made their purchase from your competition. This is not the only way to attract positive attention, however.

Depending on what it is that you are selling you might be be able to include a bonus item, something that is not very expensive if you have had the receipt to purchase it at a very low cost. For example, let's say that you are selling a smart phone- well, typically a new phone comes equipped with a charger and the necessary cables, but not a mobile charger. If you so desired, you could invest in a few of these and distribute them as a bonus with the order- you can often get a regular charger for which the owner supplies their own cable for only a dollar or two; it is a small gesture, but one that may influence a buyer to give you their business instead of your more popular competitor.

You can do other things, such as offering free gifts, that can help to build customer loyalty. For example, something as simple as including a small piece of candy with the package can be seen as a good will gesture; people will remember that you went the extra mile to make their experience just a little more pleasant, and if a mistake ever happens they might be more likely to give you a bit more leniency.

Shipping is also of the utmost priority. A common tactic that many eBay sellers attempt to use is to make a profit by charging more for shipping than it actually costs; this is not an encouraged idea. The point is to build up a great reputation among the eBay community to ensure your possible customers that you are trustworthy and will deliver their item, as promised. Padding extra costs into the purchase price very often results in very negative feedback.

You do not have to offer free shipping, but you do need to do everything within your power to make sure the buyer receives their item as soon as possible. Try to ship the item the same day that the offer closes, and be sure to supply the buyer with a tracking number so that they can keep track of their package. If something goes wrong in shipping this allows them to know the mistake was not yours; while they will not be pleased at the delay, most people are basically reasonable and will not hold this against you when leaving feedback.

Along the same idea of ​​customer service comes the feature of eBay to allow a potential buyer to ask a seller a question. If you happen to get a question from a consumer be aware that this person is, most likely, very interested in your merchandise. It is in your best interest to answer this question as quickly, and as honestly, as possible. You must do all of the little things that your competitors do not to build up positive feedback and to get the critical traffic you need as you are just getting started. The way to make money with eBay is to market yourself, market your product, and ensure people that you are a quality seller that makes sure they receive their item quickly and in the promised condition. Once you have established these things customers will be drawn to you; this is where you can begin to make money.

7 Powerful Ways To Make Money From Adsense Using Only Free Tools

There is really no doubt that there are amazing incomes currently being made on Google AdSense and the really interesting thing is that even relatively small sites and blogs are finding new ways to make money from their AdSense sites every day.

Actually there are a lot of increasingly creative ways to make money and maximize on AdSense earnings that are being discovered and also being put to use every day. And what's even more fascinating is the fact that most of these tools being used do not cost anything. They are actually free. Here are 7 of the most effective currently being used.

a) Ways to make money from AdSense by distributing articles through ezine and article announcement lists

Some of the most effective methods ways to make money from AdSense clicks involve the simple step of just increasing the volume of targeted traffic to a site. One of the ways of doing this is by distributing interesting content to ezine lists and article announcement lists. It is not too difficult to quickly build a list that reaches a million or so email boxes and can so give a lot of visibility and drive tons of highly targetd traffic to your AdSense site or sites. Probably the most popular place for doing this is at Yahoo groups, but there are a few others that you can find easily by using your favorite search engine.

Success here depends on three main factors. Firstly you should be careful to join article announcement lists and ezine lists that are as relevant as possible to your subject matter and offering. Secondly your headline has to be a killer headline that will grab readers by the scruffs of their necks and force them to open your email message among the dozens or even hundreds of others they receive daily. It goes without saying that the content must meet the promise of your sensational headline. Anything less will cause annoyance and leave all those potential visitors to your AdSense site feeling cheated. And believe me, you do not want to cause this sort of reaction because it is definitely not one of the ways o make money from AdSense or any other program for that matter. Thirdly, you will need the sort of resource box in all your articles that will leave most of your readers with no option but to visit your AdSense site.

Within a very short of consistently applying this technique, my daily AdSense earnings increased seven-fold.

b) Ways to make money from AdSense by distributing free articles to high traffic article sites
Some people find the recent trends that have seen an increase in article sites surprising. I do not. The net is primarily an information-seeking tool. Anything that will help improve the search and quality of information will greatly benefit the people making that effort.

Some of the older article directories receive very high traffic, mainly from web masters and site owners seeking quality free content for their sites. So apart from the immediate exposure these sites also guarantee plenty of future targeted traffic to your site, when individuals find your articles useful enough to re-post at their sites.

The more new articles you release to these sites every week, the more targeted traffic your AdSense sites will receive. This is in fact one of the most effective ways of making money consistently from AdSense clicks. One of the reasons for this is that targeted traffic will tend to spend more time at your site or sites, and the more time they spend, the higher the chances that they will click one of the adsense ads posted there.

c) Ways to make money from AdSense by Using Articles And A Viral Marketing Website

Any online marketing technique that involves the use of referral marketing or viral marketing automatically has a huge chance of being a success. The net is ideal for viral marketing and in fact gives any viral marketer huge leverage. Viral marketing or referral marketing is one of the most effective ways to make money online. Just ask Bill Gates.

When Gates was trying to play catch up on the Internet after an earlier mistake of underestimating the future importance of the net, he launched his Hotmail free email service when rivals like Yahoo already had millions of users. He decided to use a simple referral marketing technique. Every Hotmail message that went out had a brief signature at the end requesting the recipient to sign up for their free Hotmail account. Within a few short months, Hotmail had millions of users. And there are many other amazing stories which viral marketing boasts of on the net.

There is one of the very simple ways to make money from AdSense by going viral. Sign up at a leading viral marketing site. You will automatically get your own viral site. You can then use some of your articles to point people to your viral site. The way these sites work is that anyone who signs up at your site will have to visit your AdSense site if you register it at the site. So within a very short time you will be driving thousands of visitors to your AdSense site.

Find more details on this at my blog which address you'll find in the resource box below.

Admittedly this traffic is less targeted. Still the huge potential and possible numbers you are able to receive using this tool more than makes up for this.

d) Ways to make money from AdSense with Your Email signature

People greatly underestimate the power and potential effectiveness of a simple email signature as one of the ways to make money online. Actually this is a viral marketing method because emails get forward all the time and are even copied to several other people sometimes.

Do not waste another minute. Go to all your email accounts right now and create a signature that points to your AdSense site or sites.

Writing effective email signatures is a skill that you will have to develop, but I have found that using famous quotes is more effective than a straight advertising message. Always remember that people hate to be advertised to online.

e) Ways to make money from AdSense By Asking Questions At Discussion groups

I recently had an interesting conversation with a young Internet and computer techie. He asked me if there were quick ways to make money online by answering technical questions and helping people to solve their computer and web-related problems. My answer was that there were many discussion groups where participants would get these answers for free. I advised him that he had a better chance of making money by making use of this free advice available online rather than trying to sell his own advice.

There are tons of online discussion groups where leading world experts will answer your questions and give you valuable insight for free. It is amazing why most people do not think of using these online forums to learn as much as they can about the most effective ways of making money from Adsense.

These forums can easily be found through you favorite search engine.

f) Ways to make money from AdSense By Bartering your online skills for valuable AdSense keywords

In the old days, before the invention of money, if somebody needed something, the first question they asked themselves was; "What is it that I already have that I can exchange for what I need? Barter trade seems to have been forgotten but it is a very powerful method of trading. to send them money for an item they need.

You can barter whatever it is you have, your skills, products or services, and exchange them for genuine valuable AdSense keywords. Valuable AdSense keywords are the most effective way for a small site with low traffic to earn big cash from Adsense. And you can do this barter trade on an ongoing basis so that you always have a constant supply of valuable AdSense keywords which you can use at your site or blog as one of the ways to make more money from Adsense.

g) Ways to make money from AdSense By Sending Teaser Emails

To Everybody In Your Inbox And Also To Your Opt-in Email List
Most of us receive tons of email in our inbox every day. You'll be surprised at the huge number of people you know by simply going through your email inbox. No matter how good your spam filters are, you are also bound to be receiving more than your share share of SPAM or unsolicited email. All this is "gold" lying in your email inbox and there are ways to make money using these emails. All you need to do to process the emails into pure gold is to send out "teaser emails about the most interesting aspects of content at your site. to send out teaser email on this content here is how I would construct it;

Subject: Free Tools Currently Being Used To Increase AdSense Earnings

Hello,

Just thought you might be interested in this subject, since so many people online use AdSense these days. If not please accept my sincere apologies. Details are at my site.

www. your site's address .com

Regards,
Chris.

I am sure you can write an even more effective teaser email. It would be a better idea to have a different message for your close friends, a different one for your business contacts and yet another one for those nasty guys SPAMMING you.

These are just some of the many creative ways to make money from Adsense.

Working For Money Instead Of Freedom

Once again, this past Sunday in the Los Angeles Times Business section, there was a story featuring the latest Southern Californian who has been out of a job for a long time. While shocking, it always puzzles me to read these stories, as it's quite appropriate that these people have no interest in their own freedom.

This time, it was a 47-year old woman who was apparently an amazing insurance salesperson. After being downsized, she decided to take a few months off before looking for work again. She figured that because she was so good at what she did (especially with her experience), she'd be able to find another job without a problem. Those "off" months passed and she re-entered the job search. Almost 2 years later, she's still without a job. And that's after also applying for menial jobs.

When I first read this, I felt incredibly. First of all, how amazing could she have been if she was laid off? How could this woman not realize how bad the job market was (is)? How could she have such a big ego to think that she could take a few months off because her skills were so good? And how in the world could she miss just how successful she could be owning her own network marketing business ??

Fundamentally, this woman is incapacitated of doing anything else except choosing to be poor. Why? Her values ​​are such that she must have a steady paycheck from an employer, where she can have promotions, bonuses, etc. She values ​​security and money over her own freedom. What she's found out the hard way is that there is no security anymore as an employee. She worked so hard and developed skills, and for what? So she can apply for a job at Costco at 47 years of age?

If she valued her freedom, she could easily succeed with a network marketing business - especially with Infinity Downline. Instead of spending her time working hard for money, she could be working hard for herself, building a business that would create steady passive income for her for life . This is the true power of network marketing businesses.

What most people tend to miss when they hear terms like MLM, direct selling, and network marketing, is the power of passive income. Ads for MLM programs tend to emphasize how much money you can make every month, but the numbers tend to be so high that few people can believe it.

The truth is that those numbers are in fact real (5-figure salary per month ) (and it takes WORK to get there), but that's missing the point. Building a business allows you to build your own security. Who needs a 401k plan if you're making 5-figures a month doing nothing?

Back to the woman, if she invested her time building a business online with Infinity Downline, where she'd only have to pay $ 25 to join (and $ 25 a month to continue), get 100% commissions on her sales, and learn a new skill (internet marketing), she could easily be making her old salary within a year, if not sooner. Especially with a background in sales, this woman's success would most likely happen much sooner than she'd imagine.

But unfortunately, she will not get involved and will miss this opportunity for one big reason - her values ​​are not geared towards that of freedom; she values ​​money and security over all else.

Which would you choose? (Poor) Giving your work working life (40+ years !) Over to various companies? (Rich) or giving 4 years to a network marketing business, leaving the rest for yourself and your family?

I say, make the rich choice.

Option Trading Basics

Options trading can increase the profits you make when trading Stocks if you understand how to use them and know what you are doing. Options can be a very useful tool that the average investor can use to enhance their returns.

This article - Options Trading Basics, looks at what options are and discusses some of the options trading strategies traders can use with these versatile instruments.

Options - An Overview

Options give the buyer the right, but not the obligation, to buy (a call option) or sell (a put option) the underlying Stock or futures contract at a specified price up until a specified date.

In other words, options are like tradable insurance contracts.

An investor can purchase a Put option as insurance against a decline in the Stock price or a Call option in case the Stock rises. Buying an option gives the purchaser time to decide whether they will buy or sell the underlying Stock. The price is locked in until the expiration date, which in the case of LEAPS can be years into the future.

Options trading has several advantages that every Stock Market investor should be aware of, such as high leverage, lower overall risk than owning the physical security, more versatility and the ability to generate extra income from a current Stock portfolio.

An option of value fluctuates in direct relationship to the underlying security. The price of the option is only a fraction of the price of the security and therefore provides higher leakage and lower risk - the most an option buyer can lose is the premium, or deposit, they paid on entering into the contract.

By purchasing the undering Stock of Futures contract itself, a much larger loss is possible if the price moves against the buyers position.

An option is described by its symbol, whether it's a put or a call, an expiration month and a strike price.

A Call option is a bullish contract, giving the buyer the right, but not the obligation, to buy the underlying security at a certain price on or before a certain date.

A Put option is a bearish contract, giving the buyer the right, but not the obligation, to sell the underlying security at a certain price on or before a certain date.

The expiration month is the month the option contract expires.

The strike price is the price that the buyer can either buy call) or sell (put) the underlying security by the expiration date.

The premium is the price that is paid for the option.

The intrinsic value is the difference between the current price of the underlying security and the strike price of the option.

The time value is the difference between current premium of the option and the intrinsic value. The time value is also influenced by the volatility of the underlying security.

Up to 90% of all out of the money options expire worthless and their time value primarily Declines until their expiration date.

This clue offers traders a very good hint as to which side of an options contract they should be on ... professional options traders who make consistent profits usually sell far more options than they buy.

The option contracts that they do buy are usually only to hedge their physical Stock Portfolios - that this is a powerful distinction between the punters and small traders who consistently buy low priced, out of the money and close to expire puts and calls, hoping for a big payoff (illegally) and the guys who really make the money out of the options market every month, by consistently selling these options to them - please read the rest of this article.

The seller of the option contract is obliged to satisfy the contract if the buyer decides to exercise the option.

Therefore, if he has sold Copped Call options over his Shares, and the Stock price is above the option strike price at expiration, the option is said to be in-the money, and the seller must sell his shares to the option buyer at the strike price if he is exercised.

Sometimes an in-the-money option will not be exercised, but it is very rare. The option seller (or writer) has to be prepared to sell the Stock at the strike price if exercised.

He can always buy back the option prior to expiration if he chooses to and write one at a higher strike price if the stock price has rallied, but this results in a capital loss as he will usually have to pay more to buy the option back than the premium he received when he originally sold it.

Many option writers simply get exercised out of the Stock and then immediately re-buy more of the same or another stock and simply write more call options against them.

The buyer of an option has no obligations at all - either either sells his option later at a profit or a loss, or exercises it if the stock price is in-the-money at expiry and he can make a profit.

The vast majority of options are held until expiration and simply decay in price until there is no point in the hapless buyer selling them. Very few options are actually exercised by the buyer. The vast major expend worthless.

Having said all this, lets look at an example of how to use options to gain leverage to a Stock price movement when the trend does go in our favor ...

For this example we will use MSFT as the underlying security. Let's assum MSFT is trading for $ 24.50 a share and it is early January. We are bullish on this Stock and based on our technical analysis we think that it will go to $ 27.50 within two months.

In this example, we will ignore Brokerage costs, but they do have an effect on the percentage returns. The prices and price moves of the Stock and the options are hypothetical - they are intended as a guide only.

Buying 1000 physical shares will cost $ 24,500 and if we sell our position at $ 27.50 a share, we will make a profit of $ 3,000 or a 12% return on our capital. We will have $ 24,500 at risk if we take this position for a potential of 12% or $ 3,000 profit.

Instead of using cash to buy the physical Stock, we can buy 10 call options with an expiration that is at least three months into the future and a strike price that is close to current price of the underlying security.

10 contracts represent 1000 shares of the stock, a call option is bullish, three months until expire gives us some time for a quick move, and buying an option with a strike price that is close to the current price of MSFT allows us to get the full potential of the intrinsic value.

We buy 10 MSFT $ 22.50 April Call options. These options are currently selling for $ 2.80 and they are in the money.

$ 24.50 (the current price of the Stock) minus $ 22.50 (the strike price) is $ 2.00, which is our Intrinsic value. $ 2.80 (the option premium) minus $ 2.00 (the Intrinsic value) gives us $ 0.80, which is the Time value.

If the price rallies to $ 27.50, as we believe it will, the intrinsic value of these same options at that point will be $ 5.00 ($ 27.50 - $ 22.50). That means that if the Stock gets to $ 27.50 a share, our option premium would be at least $ 5.00 plus a small amount of time value, depending on the remaining time until expiration.

Ten option contracts will cost us $ 2,800 ($ 280 times 100) and if MSFT goes to $ 27,500, we could sell our option contracts for at least $ 5,000 ($ 500 by 10 contracts), maybe more.

We will have $ 2,800 at risk if we take this position, rather than the full price of the Stock ($ 24,500) for a potential of 80% or $ 2,200 profit, plus whatever time value is left in the option, probably another $ 100.

Our options buying strategy cave us a much larger percentage profit with a much smaller potential risk. Do not forget that, for us as the buyer, these options will expire worthless if not sold or exercised by the expiration date.

The option seller or writer simply has to sit back and wait until expiry to see if he is going to be exercised. If the Stock price is below the strike price at expiration, it keeps the premium and can write another option over the same Stock.

If the Stock price is above the strike price, he will most likely be exercised and will have to sell his shares if he does not exit the position by buying his options back on the open market (quite often at a higher price than he originally sold them for).

The downside of buying the option over the physical Stock is that if you bought the Stock itself, even if the price had not moved, you would still own it, but by buying the option, if the price does not move in the desired direction , you lose part of your trading capital.

To make options trading work, the undering security must move fairly quickly in the direction you expect, or you will lose money at an ever increasing rate as the expiration date draws nearer.

As you can see, options strategies can offer much higher percentage returns with less risk for the same trade. The majority of your cash is still safely in your trading account rather than being exposed to the market.

This is just one example of using options trading to increase your Stock Market returns. There are many more strategies and ways to use options and I encourage you to explore them further.

All options expire worthless if they are not in-the-money at expiration, so the buyer must close out or exercise his position on or before the expiration date or he will lose the entire premium.

The time value portion of the option premium decreases periodically until expiration date. The closer to expire, the faster the time value decreases, as there is less time for the option to move in the desired direction for the buyer.

For buyers, top traders advise never to hold an option with less than 30 days to expire due to the exponential rise in time decay during this period.

For sellers, it is usually most profitable to write options that have 30 days or less to expire, due to this same time dece effect ... the buyer of these options has the odds stacked against them and will require a large price movement in his desired direction to make a profit - remember, the vast majority of options expire worthless - so this is the side of these instruments the wealthually find themselves on - just a thought ...

There are many other intricacies of options trading that investors and traders should be aware of. This article is only an introduction to options trading and there is a lot more information for you to learn.

For a more in-depth look at the various Options strategies available, visit AcornTrader.com.

This page has a series of articles on options trading and outlines some of the strategies merchants can use to profit from these extremely flexible vehicles.

We encourage you to study these instruments carefully if you decide to trade them. Then use the trend trading strategies outlined in these stories and articles to position yourself on the right side of the market - whether as a buyer or a seller.

To Your Trading Success,