Very few people ever get to know what true freedom is. To be truly free, you must not depend on others for a source of income. Our totally mechanical system for selecting and trading options will give you the power to generate a virtually limitless income stream.

Trading options is actually safer and more profitable than trading stocks. This manual will empower you to trade Puts and Calls, outright. This includes a way of using other people's money to remove all of the risk from at least some of your trades. This is a fantastic trade, and once you understand how it works, you will be totally amazed at how simple it is. Even most brokers won't understand how this is done, unless you explain it to them. This type of trade will allow you to build very large positions, even with a very small account, because you have no capital at risk.

You may have heard that successful stock traders can greatly enhance their profits in the stock market with options. This is true, because options provide the trader with leverage. When you purchase an option, it allows you to participate in a security's move either up or down, but the option costs only a fraction of what it would cost to purchase the underlying security. Thus, you have much less capital at risk.

For example, if a stock were selling for $65 a share, it would cost $6,500 to purchase one hundred shares of the stock. Whereas, an option contract, controlling 100 shares of the same stock, with a strike price of $65 might cost 2.25 per share, or $225.00. If the stock price increases to $75 before the expiration date, the gain on the stock purchase would be $1,000, or 15.38%. With an increase of $10 in the stock's price, the price of the option would be in the money by $10, so it would be worth at least $10, times 100 shares, equals $1,000. Subtract the $225 you paid for the option, and you would have a gross profit of $775, or 333%.

Of course, had the price of the stock declined, during the life of the contract, and you did not sell the option, prior to expiration, you would have lost your total investment. However, you would never lose more than the option premium. Whereas, had you purchased the stock, your risk could have been the entire $6,500. More than 100 publicly held companies filed for bankruptcy protection in the year 2000. In most of these cases, the stockholders will lose some, if not all, of their investment.

By setting rules for you to follow, the TradeSmart stock selection system will help you to avoid such high-risk companies. I will show you an easy to use, mechanical system for selecting stocks.

Have you been afraid to trade options, because you believe that they are too risky for the average trader? This is a widely held belief. However, my exhaustive research has proven to me, that options are actually less risky than trading the underlying security. As you begin to use the TradeSmart Option Trading System, I believe that you will agree with me.

Whether you are already a trader, and only need to improve your results, or you are not yet a trader, but would like to be, then I believe that this system will provide you with the key to open the door to great wealth. You will be impressed, when you discover just how easy and profitable trading options can be. You will trade with purpose and confidence, because you will never allow your emotions to cloud your trading decisions.

If you have never traded options, you will learn exactly what you must do to win. You will be spared the very costly mistakes that cause most new traders to fail. Only a small percentage of option traders succeed, and by using the system detailed in this manual, you can become one of them.

The TradeSmart Option Trading System is mechanical. You will learn how to select the best stocks, time the market, enter a trade, and most importantly, how to exit profitably. You will learn how to trade, with a system that triggers automatic buy and sell signals. You will be absolutely amazed at the accuracy of the trading signals. This will give you the peace of mind that most traders lack.

Wall Street, and the media, would like you to believe that it is impossible to time the market. You will discover that, not only can you time the market, but also that it is easy! The TradeSmart System is a directional system, and it will enable you to trade with the trend, until the momentum begins to falter. You will learn how to buy at the low, and exit near the high.

Most successful traders are system traders. Systems are developed to accomplish several objectives; the most important of these is to eliminate fear and greed. This is accomplished by the system's ability to control losses, and generate profits that you are happy with. The system must also be easy to follow.

There is no reason to employ the hedging strategies, advocated by some traders, when you are able to time both the market and your trades. If they knew how to TradeSmart, they wouldn't need to design such strategies. I believe that these strategies only serve to reduce your profits and generate increased brokerage commissions.

To protect your investment capital, you will learn how to project a target price, and to set a stop loss. Armed with these two very important numbers, you can use a simple formula to calculate the risk/reward ratio for every trade, before you put it on.

To get started, you will need a good charting package, and daily market data. We have found that the end-of-day data and charts from QuotesPlus® meet all of our requirements. Their data is the most error free that we have found, the cost is reasonable, and we highly recommend them.

You will also need a good financial newspaper. We use and recommend the "Investor's Business Daily." This paper has the data that we use to select and rank the stocks that we trade. If you are not yet a subscriber, use this link to sign up for a free two week trial.

This system was designed to make trading options easy. When you learn the rules and formulas taught in the chapters that follow, you will have an advantage over the majority of traders. You will know how to avoid the mistakes that cause most traders to lose.

All successful traders have a sound business plan. Before putting any capital at risk, they make certain that the odds of winning are in their favor. They understand that trading requires discipline, and you can be sure that they know exactly what they must do to succeed. They have a plan for winning!