Options or not options?

Today i learned about option from this group named Teraoption. Basically it is like a downpayment to stock market. When the market is expected to go up in price, using the syncronization power you will buy the option contract (only 1% of the actual stock price). It is basically like paying a downpayment to a house, when the price go up to what you have targeted, then you sell the contract to another buyer. It is almost like trading business. The good thing is that buying option is 100 times cheaper than stock market with 100 times less risk and the return is almost as good as stock market. Sounds too good to believe in?
Firstly of course i will need to learn how to read the market price chart. "Never predict the market", that is what the speaker has mentioned over and over again during the talk. After learning how to read, i will basically know when the market is going up and down. With their sophisticated software, you can actually know which are the top 30 strongest and weakest company. From there you can choose what to buy. All this can be done in the comfort of your own house, trading time follow US market from 9.30am-4.30pm in US which convert to 9.30-4.30 am in Malaysia.
It is something that is worth looking into because you are actually venturing into the big game, which is stock market but you do not need that big of capital and take the kind of risk. Definitely a good way to earn extra income if you have the time and determination. I just wonder what is the downside of it? The speaker did mention you do not actually own the stock, you just have the contract of it which you later sell it to some other buyer when the price is good before the expiration date. What happen when the market goes down? You can cut losses buy putting a lost stop to it. When the market goes down to a certain value, automatically the broker will stop the investment.
The specialty of options is you can earn money both way, either when the market go up or go down. When you expect the market value to go up, you will buy the call option. When it goes down, you can buy a put option. So how does the put option work actually? When the stock is priced at 100 dollar per unit, you actually borrow from the broker and sell it at 100 dollar, owing the 1 unit to the broker. When the value drop to 80 dollar, you will buy a unit from seller and return to the broker the 1 unit that you owe. This way you sell at 100 dollar and buy back at 80 dollar, earn ++20dollar. It all sounds too good to be true? The speaker recommends 2 options which is the option express and interactive brokers. Every transaction will cost USD 1-1.5.
I do want to explore more about the possibilities as the economy in Malaysia is highly dependent on investment and demand from the whole. With higher and higher competition globally, i think it is definitely time to invest wisely with the little capital i have. After all, who is going to take care of me and my need besides myself.