Monday, July 6, 2009
How To Multiple Your Investment Dollar? PART 2
*Call options
1) For example,you accumulated 1000 shares of HHH stock over the years. Each share is worth $6, so your portfolio is worth $6000.
One day,your stockbroker review your financial statement.
Report 2: She tells you that people are willing to give you $0.50 a share today for the right to buy 30-60-90day call option at $7 a share.
That could generate $500 in income immediately.
Okay.Here's the picture on the day you sell the option contracts to Tom.
YOU Versus TOM
You own 1000 shares of stock. He wants the option to buy your 1000 shares.
You sell Cwrite) 10 call contracts. He buy 10 call contracts.
You receive $500 in 24hr. He invest $500.
You earn an immediate 8.3%. He waits to see what the stock will do.
In other words,you and Tom are betting against each other. If Tom wins, he pockets the short-term profit. If you win, you pocket the pemium.
1) For example,you accumulated 1000 shares of HHH stock over the years. Each share is worth $6, so your portfolio is worth $6000.
One day,your stockbroker review your financial statement.
Report 2: She tells you that people are willing to give you $0.50 a share today for the right to buy 30-60-90day call option at $7 a share.
That could generate $500 in income immediately.
Okay.Here's the picture on the day you sell the option contracts to Tom.
YOU Versus TOM
You own 1000 shares of stock. He wants the option to buy your 1000 shares.
You sell Cwrite) 10 call contracts. He buy 10 call contracts.
You receive $500 in 24hr. He invest $500.
You earn an immediate 8.3%. He waits to see what the stock will do.
In other words,you and Tom are betting against each other. If Tom wins, he pockets the short-term profit. If you win, you pocket the pemium.
Friday, July 3, 2009
How to multiply your investment dollars?
*Investing strategies in the new millemium are going to be very exciting, and well they should be.
We are all facing the reality that we will "live longer and prosper".
Profit multiplier 1: Writing Covered Calls
*Call options
1) For example,you accumulated 1000 shares of HHH stock over the years. Each share is worth $6, so your portfolio is worth $6000.
One day,your stockbroker review your financial statement.
Report 1: You can sell an option to someone else and earn some immediate short-term income.
The cooper covered call strategy.
1)Work best in a rising bull market.
Screen 1: We select only those stocks that are within 10% of their all-time high.
Screen 2: We elimainate all stocks that are priced above $25.
Screen 3: Include only those stocks that have an earning per share rank of 80+.
Screen 4: Include only those stocks that have a high relative strength figure of 80+.
Screen 5: Include only those stocks with a group strength of 6
"Knowing is not enough, we must apply. Willing is not enough, we must do." Gotthe
We are all facing the reality that we will "live longer and prosper".
Profit multiplier 1: Writing Covered Calls
*Call options
1) For example,you accumulated 1000 shares of HHH stock over the years. Each share is worth $6, so your portfolio is worth $6000.
One day,your stockbroker review your financial statement.
Report 1: You can sell an option to someone else and earn some immediate short-term income.
The cooper covered call strategy.
1)Work best in a rising bull market.
Screen 1: We select only those stocks that are within 10% of their all-time high.
Screen 2: We elimainate all stocks that are priced above $25.
Screen 3: Include only those stocks that have an earning per share rank of 80+.
Screen 4: Include only those stocks that have a high relative strength figure of 80+.
Screen 5: Include only those stocks with a group strength of 6
"Knowing is not enough, we must apply. Willing is not enough, we must do." Gotthe
Wednesday, July 1, 2009
Selecting Investments For Our 3 Power Portfolios
1)Diversified sector Portfolio
Select among a universe of 60 sector funds
2)Targeted sector Portfolio
select among a universe of 5 carefully selected noncorrelated sectors
3)Matrix Bull and Bear Portfolio
select from among 38 Rydex Index Trust Funds
*Then we rank the fund's performance by comparing how fast their returns are accelerating.
7 to 28 days
*If it is earning profits faster in the past week than in the past month, then its performance is accelerating, growing faster and faster.
Then rank the funds in each universe and then select.
1)Top 4 funds in diversifed sector fund.
2)Top fund in the targeted sector fund.
3)Top fund in the bull and bear power.
Lets recall 80% of your investment into long and intermediate term investments such as index funds, aggressive mutual funds, and stocks.
Remaining 20% of your dollars should go is your most aggressive portfolio. Yes, there are ways to double your money in the market -if you're willing to take some extra risks and employ the power of lerevage.
Levervage in the financial world means controlling a large amount of wealth with a small amount of money.
The use of leverage in the stock market can be very powerful.
-----------------------------------------------------------
"The best way to predict the future is to invest it."
Select among a universe of 60 sector funds
2)Targeted sector Portfolio
select among a universe of 5 carefully selected noncorrelated sectors
3)Matrix Bull and Bear Portfolio
select from among 38 Rydex Index Trust Funds
*Then we rank the fund's performance by comparing how fast their returns are accelerating.
7 to 28 days
*If it is earning profits faster in the past week than in the past month, then its performance is accelerating, growing faster and faster.
Then rank the funds in each universe and then select.
1)Top 4 funds in diversifed sector fund.
2)Top fund in the targeted sector fund.
3)Top fund in the bull and bear power.
Lets recall 80% of your investment into long and intermediate term investments such as index funds, aggressive mutual funds, and stocks.
Remaining 20% of your dollars should go is your most aggressive portfolio. Yes, there are ways to double your money in the market -if you're willing to take some extra risks and employ the power of lerevage.
Levervage in the financial world means controlling a large amount of wealth with a small amount of money.
The use of leverage in the stock market can be very powerful.
-----------------------------------------------------------
"The best way to predict the future is to invest it."
Saturday, June 27, 2009
That sweet spot!
*Understand the trend
*A money intermediate-term trends- where the advice is "just right" to make profits most of the time.
You will, of course, miss the beginning of the trend because it will just have started.
How major of an opportunity?
Manages 2 portfolios of sector funds
1)Diversified sector fund power portfolio.
2)Targeted sector fund power portfolio.
1)Diversified
*Chooses 4 funds from 6 universe of 60 sector funds.
2)Targeted
*selects a single fund from a limited universe of 5 carefully screen sector funds-a tighter focus,but at the same time it has the potential of earning greater returns.
*A money intermediate-term trends- where the advice is "just right" to make profits most of the time.
You will, of course, miss the beginning of the trend because it will just have started.
How major of an opportunity?
Manages 2 portfolios of sector funds
1)Diversified sector fund power portfolio.
2)Targeted sector fund power portfolio.
1)Diversified
*Chooses 4 funds from 6 universe of 60 sector funds.
2)Targeted
*selects a single fund from a limited universe of 5 carefully screen sector funds-a tighter focus,but at the same time it has the potential of earning greater returns.
Tuesday, June 23, 2009
Your second stream
Accelerated stock stragegies: 6 ways to magnify your return.
1) Never dip in to your long-term basin to fund a shortfall in your short-term basin and vice-versa. Each basin is sacred,designed for a specific use.
2) Learn how to beat the market. Morningstar.com is one of the top performance tracking services for mutual funds and stocks.
System 1: Let the master himself manage your money.
"If you don't know hores, know the jockey." Warren Buffett is the winning stock jockey of all time.
System 2: Select Mutual Funds with the longest-term track record.
1) Expense ratios *Should be equal
Decrease lowest expense ratio will probably have an edge in the long run.
2)Industry group performance. *Should be equal
System 3: Select only financal advisors with the longest track records.
1)Chasing the hottest advisor's previous portfolios, as many neophytes and tempted to do, produced huge losses.
System 4: Let your portfolio go to the dogs.
System 5: Consider Enhanced Index funds
Strategy 1: Riding the coattails of a single time-tested brilliant investor, the legendary warren buffet.
Strategy 2: Relying on the management of mutual funds with the best long- term track records.
Strategy 3: Relying on the financial advisors with the best long term-term track records.
Strategy 4: Buying the lowest price
What is an enhance index fund?
A stock market index usually describes the weighted total market value of a specific group of stockd.
*Enhanced index fund has a way of supercharging the returns of an index fund
*This also means that, from time to time, it may supercharge your loses.
*Index fund is broadly diversified.
1)Read the mutual fund prospectuses before investing, of course.
System 6: Consider High-powered stock sector funds.
Vertically: By size or market capitalization.
Horizontally: By industry or market sector.
What is a sector fund?
Is a list stocks in 196 industry groups or sectors. Depending on thr economy, industry groups can be either "in demand" or " out of favor" with thr market.
1) Never dip in to your long-term basin to fund a shortfall in your short-term basin and vice-versa. Each basin is sacred,designed for a specific use.
2) Learn how to beat the market. Morningstar.com is one of the top performance tracking services for mutual funds and stocks.
System 1: Let the master himself manage your money.
"If you don't know hores, know the jockey." Warren Buffett is the winning stock jockey of all time.
System 2: Select Mutual Funds with the longest-term track record.
1) Expense ratios *Should be equal
Decrease lowest expense ratio will probably have an edge in the long run.
2)Industry group performance. *Should be equal
System 3: Select only financal advisors with the longest track records.
1)Chasing the hottest advisor's previous portfolios, as many neophytes and tempted to do, produced huge losses.
System 4: Let your portfolio go to the dogs.
System 5: Consider Enhanced Index funds
Strategy 1: Riding the coattails of a single time-tested brilliant investor, the legendary warren buffet.
Strategy 2: Relying on the management of mutual funds with the best long- term track records.
Strategy 3: Relying on the financial advisors with the best long term-term track records.
Strategy 4: Buying the lowest price
What is an enhance index fund?
A stock market index usually describes the weighted total market value of a specific group of stockd.
*Enhanced index fund has a way of supercharging the returns of an index fund
*This also means that, from time to time, it may supercharge your loses.
*Index fund is broadly diversified.
1)Read the mutual fund prospectuses before investing, of course.
System 6: Consider High-powered stock sector funds.
Vertically: By size or market capitalization.
Horizontally: By industry or market sector.
What is a sector fund?
Is a list stocks in 196 industry groups or sectors. Depending on thr economy, industry groups can be either "in demand" or " out of favor" with thr market.
Wednesday, June 17, 2009
Review
1)You must start yor investing program immediately.
2)Index funds are the safest,simplest way to invest in the market.
3)Dollar cost averaging is convenient and smart for most of us.
4)Long-term investing is far less risky than short-term investing.
2)Index funds are the safest,simplest way to invest in the market.
3)Dollar cost averaging is convenient and smart for most of us.
4)Long-term investing is far less risky than short-term investing.
Friday, June 12, 2009
Invest it!
Investing is primarily a passive process.
*It simply involves the buying and selling of passive financial instruments such as stocks,bonds,options,certificates of deposit,and so forth.
*Althought investing can be done a minutes a day,the results are accumulated and compounded over long periods of time.
3 steps of investing
1) Filtering
2) Timing in
3)Timing out
The road to winning!
Lesson 1: The longer you invest, the lower your risk.
25 year holding period has shown to give you a zero risk situation.
Lesson 2: If You Can't Beat'Em,Join'Em.
Index fund VS Professionally Managed Mutual Fund.
Lower costs,0.2% Higher costs,2% or more
Lower portfolio turnover Higher portfolio turnover
Low transaction fees Higher transaction fees
Low tax consequences Higher tax consequence
Lesson 3:The sooner you buy, the richer you can become.
Take 50% of your monthly, savings and sock it away into yor chosen index fund
1)Dollar cost averaging
Works only if you continue buying.
*You don't have to be smart.You can be a total idiot and still win.
*It simply involves the buying and selling of passive financial instruments such as stocks,bonds,options,certificates of deposit,and so forth.
*Althought investing can be done a minutes a day,the results are accumulated and compounded over long periods of time.
3 steps of investing
1) Filtering
2) Timing in
3)Timing out
The road to winning!
Lesson 1: The longer you invest, the lower your risk.
25 year holding period has shown to give you a zero risk situation.
Lesson 2: If You Can't Beat'Em,Join'Em.
Index fund VS Professionally Managed Mutual Fund.
Lower costs,0.2% Higher costs,2% or more
Lower portfolio turnover Higher portfolio turnover
Low transaction fees Higher transaction fees
Low tax consequences Higher tax consequence
Lesson 3:The sooner you buy, the richer you can become.
Take 50% of your monthly, savings and sock it away into yor chosen index fund
1)Dollar cost averaging
Works only if you continue buying.
*You don't have to be smart.You can be a total idiot and still win.
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