The Federal Reserve announced last week (1/26/2012) that it would maintain interest rates near 0 percent till late 2014! Just what a blow to people today who live off the interest from their retirement nest egg and those trying to save for retirement living.

So practical question is - Just what does a retired individual or a man or women saving for retirement living do? He/she needs to understand how to invest using Compound Interest.

Inspite of the unpredictability of the stock market an individual can with efficiency both equally generate monthly revenue and/or abundance. But to start off he or she MUST:

1. Stop paying attention to supposed financial advisors - no one are fully aware of which way the market may move or when it will most likely move. These men and women merely want their commission and/or fees,

2. Get rid of any get-rich-quick notions. This strategy will most likely merely cause you to end up making incorrect conclusions and suffer a loss of money,

3. Not participate in any Finance seminars - he or she don't comprehend any more than yourself Just what the market will do or if they do, he or she won't disclose any 'secrets' to you. If their valuable know-how was so superior, precisely why don't these individuals give you a guaranteed refund?

4. Definitely Not pay for any and all trading systems - these products just don't accomplish the function as exclaimed. These persons use software much like TradeStation to generate a 'trading system' that in all probability they never ever used them selves. That is precisely why the most time these individuals give you to recieve your money back is thirty days, but no one has the ability to authenticate a program that fast. The shortest amount of time you will need is 3 months,

5. Understand that as all individuals, you are powered by the STRONG reactions of FEAR and GREED. If we don't keep these feelings under control, they can instigate you to make very wrong choices.

Plenty of people are being taught by their Stock Market Brokers that stock market options are hazardous to their funds. These individuals are told this mainly because the Brokers don't promote them or they don't comprehend them.

The uncomplicated fact is that stock market options are similar to a knife - they can be good or bad, depending how they are utilized. Options are only one of the Limited Number Of ways that the 'little guy' could definitely with a little amount of funds, end up getting rich in a relatively short time period. Applying the benefits of compound interest, a person starting with nothing but $3500 and receiving 10%/month will be a millionaire in 5 yrs.

So practical question becomes - is it actually possible to make 10% per month on your own personal investment? The answer is yes if you use the suitable stock market option strategy. No. 1 above states that no one has knowledge of which way the market will most likely move or when it may move! Most people BUY options because they desire a Large gain, but the RISK is extremely high also, and it infrequently happens. These individuals have a lot more losings than wins.

The key is always to SELL options to those individuals who really feel they comprehend where the market is going and the time it will happen. Using the suitable option strategies of the CALL Credit Spread, the PUT Credit spread or the Iron Condor a person has very low risk and a small but solid month-to-month gain of 10%. They will certainly accomplish this 96 months out of ONE HUNDRED. The other four months he or she will break even. even.