There are two types of attitudes in the world—an attitude that stems from knowledge and one which is an offshoot of ignorance. This understanding can be applied to every aspect of life. Entrepreneur, army veteran, father, and husband Aristotle Varner chose to apply this to his growing finances. After saving money he acquired from barbering while in the military, he wasn’t sure of what to do with it. He decided to convert his ignorance into knowledge by learning about financial investment. Today, he’s one of the leading voices on options trading which he believes is a gateway to financial freedom.
For Aristotle, options trading is a great way to manage risks. He says, “An options trader has to be an exacting money manager. As financial instruments, options are high-risk. This inherent aspect keeps traders on their toes in terms of how much risk they are taking or anticipating at any given point. As a part of our human nature, we tend to oppose overwhelmingly unpredictable things, especially if we don’t understand them completely. This internal attitude makes traders cautious while buying or selling options. And a cautious trader is a happy one.”
Going hand-in-hand with being a money manager is being disciplined. He says, “Another thing that options trading can help you hone and in turn reward you with greater financial returns is your discipline. As an options trader, you need to find your discipline to do extensive research, identify opportunities, set up the right trade, formulate strategies, position your goals, and form an exit strategy.”
Adding to the pros, he says, “To buy an option you need to pay the premium plus the trading commission, which is a lot cheaper than shares. Although the out-pay is less, the returns you can reap if the trade goes in your favor will be just as much as a trader who invests in shares.” A double whammy indeed.
He further adds, “Options allow you to fix a stock price by letting traders fix the dollar amount at a price they find most appealing for a specific period. Depending on the type of option used, investors can buy or sell the stock at the strike price any time before the option contract expires.”
An investment strategy that improves money management, hones discipline, costs less, and promises high returns is one whose potential can be explored by those who are willing to improve their financial situation.