Today I am not talking abt any charting strategies. I am focusing on using our money more efficiently to buy the same item which have the same exposure (risk and rewards).
In this article I will use Nikkei as the example.
In June 2013, I saw the potential of Japan Index(Nikkei) and I plan to buy the ETF on the Nikkei. The ETF is EWJ.
My Purchase price is at around 11.30 in June 2013.
I bought the EWJ leap options (till 2015) instead of the shares.
I am NOT talking about how good my entry is or how good my exit is.
What I am showing here is the efficient usage of money for the same item that I am purchasing.
Losses and Gains are similar. However, the amount required is lower.
The remaining amount of $11,200-$2,500 = $8,700 can be used in other areas to generate more cash.
What I have mentioned in this article is 1 such example.
Are there other areas that you can make your money more efficient?
SmartPassiveCashFlow Wishes You To Utilise Your Money In An Efficient Way