文档介绍：High Profit - Low Risk Trading
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Who We Are
1. Leading stock market education
company in the United States &
Canada
2. Courses taught by experienced,
essful traders
3. Since 1993, we have helped over
30,000 students trade the markets
essfully.
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Option Elements
Stock
Price
Call Prices: Expiration
Months
Price of XYZ - 105
STR July Aug Oct
Strike 100
Prices 105
110
Option Premiums
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Average Trader
1. Uses discretionary method
2. Greed and Fear
3. Buy Low – Sell High
4. The Religious Approach
5. System Trading with Limited
Risk
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Dogs of the DOW System
1. Uses the DOW 30 Stocks
2. System only BUYS certain stocks
3. One Year Trading System
4. No Risk Management
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Dogs of the Dow for 2002 January - March
Stock Symbol Price 12/31 Yield Price Today Difference Yield Totals
EK 6%
JPM 4% - -
SBC 3%
IP 2%
XOM 2%
Totals
ROI 8%
Annualized 16%32%
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System Recap
Long Term Stock Buying System
Unlimited Returns (Best 40% in One Year)
Substantial Risk (Actual worst was % for One
Year)
Outperforms nearly every fund in the last 30
years (Average Annual Returns – 22% in the last
30 years)
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Analyzing Positions
1. What if I am right?
2. What if I am wrong?
3. Great traders look at risk.
FIRST !
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Bullish
Buy a Call instead of buying stock
• Lower Cost and Risk
• The Power of Leverage
• The Power or Protection
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Dogs of the DOW System
Using Call Options
1. Uses the DOW 30 Stocks
2. Buy 1 year ATM Call Options
3. Rebalance each year in December
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