As many of you know; I am a Long Time Investor, specifically I am “an Option Trader”. I “try not to buy any companies or funds” but rather just profit from Selling “an option to buy from me or sell to me, depending if a “call” (they can call it or buy it from me) or a “put” (they can put it to me or sell it to me).
Or thinking of it another way; I ALWAYS LOWER MY “Cost Basis” of any company stock, or ETF (Electronically Traded FUND, as in “mutual fund”, to keep it simple). With that said, lets take an example comparing my style and Far More CONSERVATIVE APPROACH to “what the Experts and Your Financial Advisors Tell You To Do.
Your “Experts” say “Buy This (company or fund or other). What they said really is “Bet You $$$ that This Will GO UP”. —- It might, but it also could go DOWN just as easily. You are “BETTING” (gambling) with NO BETTER than a 50/50 chance of WINNING! (Figuring in “fees”, “costs”, “service charges” and other “extras”; You Further Lessen Your Chance of “making money” or making a profit. No wonder that so few people directly “INVEST”; Truth is They Are GAMBLING, yet they do not know it ! “The Experts” Just USE YOU for THEIR GAIN !!!!
Now consider MY WAY:::::: I usually SELL an option instead that INSTANTLY CREDITS My Account “Real Money”! I’ll break it down now , though not complex at all, the words might confuse you at first!
Using this example of a RECENT “Trade” I have NOW: Everyone KNOWS “McDonalds”! What I did last month and again this month is this: McDonald’s stock was approx. $90-91 per share when I “placed the trade”. I sold 1 contract (good for 30 days only, then “the contract expires, just like your home fire insurance, car insurance, your mortgage, your rent, your cell phone, or cable bill does in actuality. Every month, your “contract with these companies “ends” and in these, unless you STOP them, the contracts “Restart again”. In MY WORLD of Trading, Rather than “anything automatically restarting; I must “place a trade” to “start (or stop if I choose) another “contract”.
Getting back to McDonalds (symbol used is MCD), Rather than Buying MCD and HOPING It Went Up, I am “too scared to BET THAT HAPPENS”, so I Do NOT BET THAT! Instead I SOLD a Contract , Good for 30 days that said “Within that 30 days I agree to BUY MCD stock, BUT “Not-At-$90+ per share, BUT at ONLY “87.50 per share. —- What price would you RATHER Pay for the MCD stock (shares)????? #87.50 is a MUCH “Better Deal” for sure!!!
AND what do I get for “SELLING This Contract”???? I received (cash into my account) $1.20 per share! I simply Offered $87.50 and Got PAID $1.20 for that OFFER (that expires in 30 days). —– hmmmm, “buy MCD for FAR LESS than it “Sells For”; YEP !
Now let me explain that “each contract” is grouped in 100 shares of stock, so “1 contract is for 100 shares of MCD. —- With “fees” taken out (my cost to trade) of $1.50 (yes you heard me; it cost me ONLY $1.50 total) $1.20 x 100 shares= $120 CASH (minus the $1.50) = $118.50 PROFIT !!!
Each day that goes by WORKS in MY FAVOR: Imagine How Happy Your Insurance Company Is Day after Day when “their contract with you Is Almost Over: They ALREADY RECEIVED Your CASH, and every passing day is ANOTHER DAY they Did NOT Have To PAY You Anything, they Did NOT have To Do Anything; They Simply Grow RICHER! When their Contract with you Expires, You Go to Them, Pay Them Again: You LOSE CASH; They GROW RICH!
Now I do NOT Want THEIR RISK, to Buy you a new house or car, BUT I “like their style! I just “offer instead to pay you FAR LESS than THE GOING PRICE for The Companies you own. I’m “Looking for GREAT DEALS”!!!
So with that 1 MCD Contract, I received $118.50 PROFIT and am committed to you for 30 days ONLY! I Made $118.50 = You LOST $120 !!! —- If I CHOOSE (I have TOTAL “choice”) I could (and did last month and again this month) SELL Another MCD Contract!
All other things “being equal”, each month I make over $100 and each and every month you (or the fund company or another “investor”) LOSE. The ONLY REASON “You and So Many “Experts” (ha ha I laugh at that wisdom) wish to “PROTECT Your $$$ to limit your loss to (using the same MCD example) the difference of what you paid ($90+ per share) to be able to still sell it at a loss to me of $87.50 per share. “Scared People” do crazy things! There is Millions of Contracts EACH & EVERY DAY Bought and Sold actually just in MCD!
Let’s look at “the Bad Side” and if “things go-to-hell” scenario; What if MCD “crashes and burns” and people stop this month going to MCD. “Darn it”; NOW I Own 100 shares of MCD (at ONLY $87.50 per share) that PAYS a DIVIDEND (more CASH into my account) that Equals 3.67% at the $90+ price so The Same Dividend $$$ would actually THEN Be Far GREATER Than 3.67%!!!! —- In reality though I would turn around an immediately “Sell Calls” that in turn would pay me similar amounts and possibly get BOTH the Dividends and The CASH from the “Call SALE”!
As I am NOT “very active” these days as I do not NEED Great Profits to LIVE WELL, I just do these simple things. I tend to range in the 12% – 22% RETURN RANGE ANNUALLY now! —- Google “Karen The Super Trader” and see her TRUE Story! A kind, sweet lady who about 9 years ago started doing similar type investing, but far greater grew her initial life savings of $200,000 into double in 2 years and NOW “Works $200 Million for “Returns” (gains) of $50 – $90 MILLION ANNUALLY. The Reason SHE “works her money so hard” is Simple: She Wanted To CHANGE THE WORLD so she Uses Her HUGE GAINS (PROFITS) in her own Charitable Organizations she Started; They educate kids in Africa and around the world, provide Clean Drinking Water to them and CHANGE the Worse-Than Poor’s Lives!!!!! That is why she NOW has her “company” (total of 6 people) to MAKE HUGE RETURNS; Not For Money BUT To ENABLE HER GREAT GIFTS of “LIFE” to The World’s Poor !!!!! Google her; She is An Amazing Lady!
—- Your “money in the bank” and even buying 30 YEAR Government Bonds Pays You Far Less than 2% (banks presently pay maybe .05% at best on your money).
Anyways; I WIN Each & Every Month!!!!!!!
For those of you who “Do NOT INVEST” or “own stocks, or mutual funds or bonds, etc.; Most of you DO, You “just don’t realize it”! Your pension fund at work, your IRA, your 401k, the government you work for, be it county, city, state, federal, and much more DO OWN THESE THINGS and YOU “DEPEND on THEM for Your Job, Your Healthcare, Your Retirement, Your Education, Your Roads, Your Utilities, etc.!
Wouldn’t it be NICE for YOU to “be lucky like me” and NOT EVER “Have To Work For Others Again”? Don’t you wish you “were me” and had retired twice before age 48, and a couple other times since “As You Did NOT Have To Work; But Rather “you work and started companies and organizations in about every career field and area there is, NOT “for the money”, but SIMPLY To LEARN MORE, Experience More, Do More, Grow More and MAKE DIFFERENCES All Along The Way, HELPING 100s of 1000s of people along the way????? YEP; I “Am LUCKY” (NOT —- I Just Grew SMART and WISE!!!! You Can TOO !!!!!!
—- I can “Teach You A LOT” —- You “Just Have To Want To Become Great”!
Well, looks like ANOTHER GREAT MORNING “in the markets” and Of ALL LIFE! Gotta run now! —- Just Ask: I Will Help You Too!
Below is a little comparison of “Interest Rates” or “Dividends” if you prefer that word or “Profits”; the name does not matter; the RETURN to YOU Does ! I list several %s. See the VAST Differences! Also I ONLY USED “Lump Sum” rather than “x amount of money put in monthly that actually HELPS HUGE!
Using $10,000 ONLY :
– @ 1% return over 20 years = 12,201
– @ 12% return over 20 years = $96,462
– @ 15% return over 20 years = $163,665
– @ 18% return over 20 years = $273,930
– @ 18% return over 30 years = $1,433,706
Now “Really START TO WORK YOUR MONEY! —— STOP “Working For It”!
——–I should add that I SELL Not 1 Contract or 2 BUT Usually 10 – 20 and Have About a Dozen ADDITIONAL Companies I Deal In at the same time. But using the same MCD example; rather than 1 contract for gross of $120, I sell 10 = $1200 gross profit per month on MCD alone! Add AT& T, Verizon, Microsoft and other well known corporations that pay as good or better dividends, then you begin to see “WHERE I AM”! You Could BE There Too ! “No Worries”, Just a GREAT LIFE!
Remember “Being Poor is only a state of mind: If you don’t mind; it doesn’t’ matter”!
If it was difficult, why would “kids” as young as 8 years old be doing it? Why would “kids” as young as 13 be managing their parents money, savings, retirement moneys? Why would Teachers in Grade School, Middle School, High School and even COLLEGE PROFESSORS (who happen to “teach” economics and investing) by Taking LESSONS FROM THESE “KIDS” ?????? —- These “KIDS” are NOT “fiction or for play” BUT in REAL, EVERYDAY LIFE Are Doing Exactly As I Say! I Know Some of “THESE KIDS”!!! — FACT: If we sat down, you, the spouse and the “kids”, within 15 minutes YOUR OWN “KID” will be EXPLAINING Stuff” TO YOU !!!!! I have seen this MANY TIMES! Over the years, Every time a New Client Came To Me, my first REQUEST would be “BRING THE WHOLE FAMILY, no matter How Young The Kids”!. Every time The Kids Would Grow Like Sponges With WISDOM and Abilities! If “not for you; do it for them”. They Deserve Better.