investing: Having All Your Eggs in One Basket is For Amateurs

This article illustrates why it is wise to never keep all your eggs in one basket. This can be applied to virtually every aspect of life where the safety of your "eggs" are vitally important. This is farming of a different sort as the seeds planted here can produce profits into the foreseeable future.

Simply said it is wise to be diverse in your investment portfolio. This applies to being in different instruments, sectors, markets to lessen the risk to your portfolio. For the purpose of illustrating what it means in terms of options trading.

Any experienced options trader will tell you that strategy is key when trading in options. The old adage of BUY and HOLD cannot be applied to options unless you are trading in European style options which give you no alternative to wait until expiration day to trade them. We recommend "American" style options as they allow the purchaser to sell their positions at any given time prior to the demise of the position on expiration. Since strategy is key we will be giving expert strategies away so that you can trade with the pros. One of the easiest is the staircase strategy which as the name implies you have positions setup like steps on a staircase so that moderate movement in your favor will place you in position of profit on some but not all your positions. This is preferable to trading in options that have the same "strike price" and only proves that having all your eggs in one basket to be an unwise way to seek profits in the market.

Diversification is the key to the success of any portfolio although you may have enter areas of finance you may not be familiar with there are many tools available either for you to self learn or you can rely on the expertise of professionals to guide you along the way.

In 2010 there are many exciting things that we have in store for our clients. The financial doom and gloom has turned into opportunity for those who have been able to recognize the gift that this "crisis" has given to us. We will be offering a wealth of tools and services for readers worldwide and widening the niche that we have been working successfully despite the crisis.

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