Sunday, March 22, 2009

Writing a Financial Freedom Plan (Contd)

3. Plan your Work and Work your Plan

This is the easiest part and the most important part of the process. Action. Since you have defined your long term, medium term and short term goals, chosen the path, you need to take short term goal and determine the set of activities that will be required to achieve the goal.Determine the number and sequence of steps you will need to achieve this short term goal.e.g I want to make a million dollars net worth in the stock market in 5 years, Long term Goal = 1000000 in 5 years i.e 31 May 2014Medium Term Goal = 50000 in 2 years i.e. 31 May 2011Short term Goal = 2000 in 3 months i.e 31 Aug 2009
To achieve this I need to start with a sum of at least 1000 SGD to make it more realistic and achievable.Next I need to choose a vehicle that will let me make that amount of money in 3 months.Options are a good way of making that.To do so, I have to learn and practise dummy trades using options before I do actual options trade.One small mistake and I can lose the whole capital. Its wiser to spread and diversify your risk across mutiple options instead of putting all your money into one option.A single options trade can make as much as 300% profit if you plan and execute it properly.
Do your due diligence,plan the set of activities and consistently follow on a daily basis.

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