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Trade Your Way to Wealth: Earn Big Profits with No-Risk, Low-Risk, and Measured-Risk Strategies (Wiley Trading)
 
 
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Trade Your Way to Wealth: Earn Big Profits with No-Risk, Low-Risk, and Measured-Risk Strategies (Wiley Trading) (Hardcover)

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Key Phrases: index fund, chart template, net credit, Get Started, Also Make You Money, Worden Brothers (more...)
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Frequently Bought Together

Customers buy this book with The Smart Investor's Money Machine: Methods and Strategies to Create Regular Income (Wiley Trading) by Bill Kraft

Trade Your Way to Wealth: Earn Big Profits with No-Risk, Low-Risk, and Measured-Risk Strategies (Wiley Trading) + The Smart Investor's Money Machine: Methods and Strategies to Create Regular Income (Wiley Trading)

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Editorial Reviews

Product Description

Successful trader and advisor Bill Kraft shows how to trade the financial markets in a way that limits risk and provides the potential for big profits. Kraft, who left a successful law practice to become an independent trader, explains his own educational process and how he arrived at a trading approach that primarily uses options to generate consistent income, limit risk, and participate in big market moves. In simple and down-to-earth language, Kraft explains a variety of strategies including buying and selling options; covered call writing; collars; using closed end mutual funds for income; debit spreads, volatility-based straddles; ratio backspreads; condors; and calendar spreads. Kraft emphasizes that traders need to first develop a sound and reasonable business plan ? in the same manner that any entrepreneur would plan a new business. Armed with the strategies explained in the book and a solid business plan, traders will have a blueprint for generating consistent profits in a relatively stress-free and efficient manner.

From the Inside Flap

Trading the financial markets can be a risky endeavor, but with the right approach you can achieve success. Author Bill Kraft is well aware of the difficulties that surround trading, but during his time in this field, he's developed some distinct strategies to overcome these obstacles and enhance the performance of his portfolio.

Now, in Trade Your Way to Wealth, Kraft shares his hard-won knowledge with you and reveals how to trade in a way that limits risk, generates consistent income, and provides the potential for big profits.

Filled with in-depth insights and practical advice, Trade Your Way to Wealth skillfully explains Kraft's market philosophy—which will allow you to trade with little risk and without the need to monitor the market every day—of keeping your losses to a minimum, while not cutting your gains.

This accessible guide begins by addressing the pros and cons of "buy and hold" investing and then quickly moves on to discuss the importance of cultivating a comprehensive trading plan before you enter today's markets. With a plan in place, you'll be introduced to a variety of risk-sensitive trading strategies—primarily based on options—that will allow you to make money, and manage risk, whether the markets are going up, down, or sideways. And unlike so many other books, Kraft shows you where the risks exist and how to deal with them, so you can invest in your comfort zone.

Chapter by chapter, you'll learn how to take different strategies—from buying stocks with protective puts to selling naked calls—and apply them in real-world trading situations. Along the way, you'll discover how to efficiently integrate exchange-traded funds (ETFs) into your investment endeavors and become familiar with certain low-risk, high-yield vehicles that can produce consistent income. Many of the examples explored cannot be taxed federally, while some are even exempt from both federal and state taxes.

Whether you're new to trading or an experienced investor, Trade Your Way to Wealth has the information you need to succeed. It will allow you to capture considerable profits from today's dynamic markets, while operating in a relatively risk-free manner.


Product Details

  • Hardcover: 204 pages
  • Publisher: Wiley; illustrated edition edition (February 4, 2008)
  • Language: English
  • ISBN-10: 0470129794
  • ISBN-13: 978-0470129791
  • Product Dimensions: 9.1 x 6.3 x 1 inches
  • Shipping Weight: 13.6 ounces (View shipping rates and policies)
  • Average Customer Review: 4.0 out of 5 stars  See all reviews (20 customer reviews)
  • Amazon.com Sales Rank: #268,591 in Books (See Bestsellers in Books)

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20 Reviews
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Average Customer Review
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38 of 44 people found the following review helpful:
1.0 out of 5 stars Not recommended for options traders, April 22, 2008
If you are reading this book for options trading ideas, it can not be recommended. I was certainly interested in a "no risk" options trade which Mr Kraft presents as the collar using LEAPS. A collar is buying stock and puts while selling calls and with LEAPS it would be looking to use options with at least one year to expiration. I believe it is possible to find collars with time frames of one year or longer that have no risk however -- there is a cost - which Mr Kraft does not discuss and the cost may be greater than the risk!!! For example, consider a stock trading at 52, 730 days to expiration, 35% voltility, 5% risk free interest, no dividend. The Black scholes formula values the 50 strike put at $7.04; the 60 strike call at $9.32. It appears that one can make an easy $2.28 (=9.32-7.04) if the stock does nothing and ends exactly at 52; that would represent a 2.28/52=4.4% return. But 1) the cost of holding that stock and buying the put (theres no margin required for selling the calls against long stock) is 52+7.04=59.04*.05*(risk free)*2years = $5.90. The true net return is MINUS 3.62 =2.28-5.90. That does not consider the opportunity cost of tying up your money for two years. There may be some good ideas in the book on the trading plan and generating tax free or low taxed income but there do not seem to be any really good ideas on trading options...
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37 of 45 people found the following review helpful:
1.0 out of 5 stars Disappointing - basic info., March 8, 2008
When I read the title, and other reviews, I was very excited and little skeptical too.

Just for reference, although I am not a full time trader, I have been trading stocks, options, and futures for the last 10 years. With that background, here is what I found in the book.

The Good:
- The chapter on considering trading as business and the need and outline for the business plan is important. It gives a nice reference. I must say that I found author's blog on the same topic, so don't go for the book just for this.
- Information about the closed funds which can earn tax free interest may be useful to some. This information may be available online, but I would not expect to "earn big profits" (as the title suggest) using them.

The bad:
The book shows a few options trading strategies such as collar (as risk free to low risk free), iron condor, spreads, etc. I found these strategies to be very basic or introduced for novice traders.
- While there is a risk free strategy (collar) may be available(which is highly improbable), you may not be able to 'make millions" as the title of the first chapter suggests. In fact, in today's technical world there are computers with algorithms to find such inconsistencies. It will be difficult to find a collar trade where you will find credit (meaning sell a higher strike call which will pay for the put and may leave some money on the table). Usually collars are debit transactions.

The ugly:
- The book title and some of the introduction in the first chapter does not live up to the expectation built.
- I found the book quite overpriced for the info. provided. Now a days, most of the information/advice can be found online (e.g. chapter on "What you need to get started") and for novice traders only.
- While the author stresses on the business plan, I was surprised that he did not include a real life example of his own business plan in any trade examples. There is no trade technique discussed in detail on "what, why, when, and how" of the trade.

Overall, I would not recommend the book for the price (or look for it in the library or in the bookstore). There are much better titles available (I am not going to list them as it will depend on the audience from novice to experienced.)

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13 of 15 people found the following review helpful:
3.0 out of 5 stars Clear on fundamentals, but questionable credibility, March 16, 2008
By JETF (Boston MA) - See all my reviews
Good book for option beginners as it lays out the basic strategies in a clear and concise manner.

However, one disturbing section was the example used in 'collar' strategy, which raises question of credibility. The author claims that he unwound his collar position before expiry and made a much higher return vs. waiting for expiry. At first glance, I was amazed by the outcome ... I didnt think that a collar (limited risk, limited profit) could lead to a high profit outcome (in this example, an unbelievable 58% in 2 months, with limited risk).

Here's the questionable data: the author sold $250 calls for 40.40 (short call portion of the collar), and bought the stock at $231. Then two months after, with the stock trading at $380, he unwound everything. The author bought back the $250 call option for $61.20. What?!?!? Can the market be that inefficient? A call option with intrinsic value of $130 was bought for $61.20? Too good to be true. If this were true, then maybe this is how the author made his millions...but I doubt it. After reading this section, I must say I began to question the credibility of the other examples used, which is disappointing given how good most of the book was.
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Most Recent Customer Reviews

3.0 out of 5 stars Trade your Way to Wealth
The product is good and worthwhile. It took too long to receive considering it was supposedly in stock.
Published 3 months ago by Michael A. Coady

2.0 out of 5 stars Boring
Well, this book was boring to me and haven't added almost anything to my useable list of strategies.
Published 4 months ago by Tadas Talaikis

5.0 out of 5 stars If you want to be a successful trader, you should read it
I bought this book at the end of last year. I just finished my first reading and begun my second reading with more detailed notes. Read more
Published 10 months ago by N. Shen

5.0 out of 5 stars Trade Your Way to Wealth
This book is a definate keeper. I really enjoyed the open straight way in which Bill Kraft presents his stratigies in this book. Read more
Published 11 months ago by Mckee

5.0 out of 5 stars Trade your way to wealth
I have read many trading books and have been a profitable active trader for many years. Mr Kraft's book is without question the best book on the market today from which to learn... Read more
Published 13 months ago by Michael R. Beebe

2.0 out of 5 stars Deceptive Advertizing
The book is a good introduction to options trading and various strategies using options and ETFs. It by no means identifies a way to earn big profits with no risk or even low... Read more
Published 19 months ago by Elias Aractingi

5.0 out of 5 stars Well written and clear
Very educational, the importance of a game plan is largely overlooked in the popular literature on the subject. Read more
Published 22 months ago by Bob C

5.0 out of 5 stars Good Book but certainly could be better
Lets first see some good points in the book:

The book is not over priced and is well worth the money paid for it

It is written in a clear and concise... Read more
Published 22 months ago by Javaid Akhtar

4.0 out of 5 stars Good, honest advice.
As someone who is new to trading myself, I find Mr. Kraft's clear & concise, yet friendly, tone highly appealing. Mr. Read more
Published 22 months ago by S. Silburn

5.0 out of 5 stars Mr Kraft's book taught me how to trade smart.
Mr. Kraft's book has good information for the beginner and experienced
trader. I have started reading the book for the second time and plan on reading it a third time to... Read more
Published 22 months ago by Barbara Wine

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