Sunday, June 26, 2011

Help Wanted

Zip Nada Zilch and Free Cash Machine.
I made this power point presentation called HELP WANTED today. In these rough economic times I know many are looking for a job. I saw this program and it looks promising. For every referral that signs up for  a free trial offer, the referrer gets 20 dollars. The presentation features two programs which are ZNZ -1 (aka. and Free Cash Machine.

Free Trial Offer
I signed up for a free trial offer by credit It's I 5 day trial period. Because I have done this, I am now qualified to earn 20 dollar payments for every referral that does the same. By doing this a residual  or passive income is not created but it does bring in "Right Now Money!" 

Program to make money online from home.
If I can do this successfully, I can use the funds that I receive from this program to buy stock with will create residual or passive income through dividends. I could also use the money as an incentive for people to join other programs. According to the presentation, this program is a great way to earn money online from home.

Will it work? I guess time will tell. I'll check in next week to update my results.

From Employee to Entrepreneur.

It was approximately 1 month ago when I launched this blog. My goal is simply to learn apply and practice the principles of wealth and share them with others. Based on what I have learned so far, I know that Wealthy people do 3 things: (1) They buy Assets (things that pay them), (2) The compound the profits (or re-invest the profits), and (3) They create leverage by creating networks (They ask people to join them so they can create further wealth).

This month I purchased 13 shares of stock which created a passive monthly income of $1.44. I will be paid this month on June 29th, 2011. I will purchase a few dividend paying stocks each month and  re-invest the profits. I found this to be easy and it was my fist step to gaining wealth. 

I am also involved in 2 free network marketing programs. So far this month I have made 6.93 dollars form my own efforts. However, that is the problem. It's just me so far. I don't know how to effectively recruit people to my cause. I don't know how to sell. Heck when truth is told, I am afraid to sale and I am afraid not too. While writing this I was just reminded of quote from Kim Kiyosak when she said " When you work a job, you only have one client, which is your Boss." That statement stings me when I think about it because I know I am in danger. If I quit they have 200 more employees. But if they fire me I lose 99% of my income. That is truly terrible.

The question that comes to my mind after pondering that last paragraph is "How do I effectively move from being an Employee to an Entrepreneur?

Monday, June 13, 2011

How To Treat Stock Like Rental Property

Treating stock like rental property
View more presentations from Demond Johnson

On Week ago I did my first Covered Call on the Silver EFT. I earned a 1.47% return for the week. I created a report called How to Treat Stocks Like Rental Property. It describes what a covered call is, gives an example, and documents the results.

Since my position was uncalled, I rented the stock out again this week. Unfortunately I only received 5 dollars in rental/premium income this week. I will update this trade in one week.

As of today silver is trading below 35 dollars. I am considering the purchase of a put options as insurance on my position.

Note: I started my OX virtual account with 25,000 dollars. I subtracted 20,000 from the balance, giving me an account balance of  5000 dollars. I will log my trades and make a spread sheet to track my results.

What are your experiences with covered calls? Please share them in the comment box below.

That's all for now. Have a great day.

Wednesday, June 8, 2011

Fast N Furious Wealth or Slow N Steady Wealth?

The Slow and the Steady will win the race of Income investing. Contrary to advertisements about investing being done at a Fast and Furious pace, true wealth is more likely to be built at a slow and steady pace. In a previous article I took the model of a penny compounded or doubled for 20 days to use as a model.  If a penny was compounded for 20 days, it would look like this

Target 1 ------------------------------>$0.01
Target 2------------------------------> $0.02
Target 3 ------------------------------>$0.04
Target 4------------------------------> $0.08
Target 5 ------------------------------>$0.16
Target 6 ------------------------------>$0.32
Target 7 ------------------------------>$0.64
Target 8 ------------------------------>$1.28
Target 9 ------------------------------>$2.56
Target 10 ------------------------------>$5.12
Target 11------------------------------> $10.24
Target 12 ------------------------------>$20.48
Target 13 ------------------------------>$40.96
Target 14 ------------------------------>$81.92
Target 15 ------------------------------>$163.84
Target 16 ------------------------------>$327.68
Target 17 ------------------------------>$655.36
Target 18 ------------------------------>$1,310.72
Target 19 ------------------------------>$2,621.44
Target 20------------------------------> $5,242.88

Based on the stocks I have been able to acquire in May and June, I have build a monthly dividend income of approximately $1.49 which takes out Targets 1 through 8. I have been documenting each purchase in my OptionsXpress Investment Journal.

Here are the entries documenting my trades.
Purchases In May

1st Stock Purchase

2nd Stock Purchase

Purchases In June

3rd Stock Purchase

1 Dollar and 49 cent in monthly dividend income is probably not all that exciting to some. But it is not where START that matters...It is where you FINISH.

What are the ways that you are building passive or residual income (Cash Flow)? Please leave your comments or questions in the comment box below.

Monday, June 6, 2011

Covered Call on SLV ETF

Today I will use a covered call strategy on the Silver ETF (Exchange Traded Fund) weekly options. The trade will be conducted in a Virtual account.  I am going to use this as an "Educational Example". I will document the results and create a an E-book/Report called How to Treat Stocks Like Rental Property.

Let's take it step by step.

Step 1.
Log in to your Virtual account, and choose the stock that you would like to use the covered call strategy on. In this case, the stock will be the Silver EFT (Ticker symbol: SLV). For a better view of the pictures below, just click on them.

Step 2.
Buy 100 shares of SLV and Sell 1 contract. By purchasing 100 shares of the stock, you now have the ability to rent the stock out. When you sell the contract or option it is like the buyer of a property renting out the property.

Step 3.
Collect the premium/rental and wait for 1 week. One of two scenarios will occur. Scenario A: the stock will be above the price you rented the stock out at, and you will be paid the price of the stock that you rented the stock out at plus the premium/rental (AKA->being assigned or called away).  Or, Scenario B: The stock will be below the price you rented the stock out at. If scenario B occur you will be able to keep the stock and keep the premium/rental (AKA->being unassigned or uncalled).  

If you want to see an example please look at the article on Covered Calls.

In this Educational example, I purchased 100 shares of SLV at 35.86 per share plus a 10 dollar commission for a total of 3585.95. Next I rented out a 1 week contract for some to purchase this stock from me at 36 dollars. I received 68 dollars minus a commission of 14.98 for a rental income of 53.02.

If Scenario A occurs, I will receive 3600 dollars in my account and keep the 53.02 dollars in my account in 1 week. If Scenario B occurs, I will keep the stock, the rental, and re-rent the stock out the following week. What's going to happen?  Let's follow the trade and check for the results in 1 week (06-13-11)

Sunday, June 5, 2011

Stategy discussion 1

In this video Anthony Robbins states that a strategy is a specific way to organize resources in order to get a specific result consistently.
One strategy that consistently works for me is to buy stocks with dividends. I buy ARR and it pays me every month on or around the 30th day of the month. While MSFT pays once per quarter.
I am currently learning how to use the covered call strategy in my virtual account. I know that dividends work as a strategy. However, I am not sure about covered calls. This is why I will start testing it in a virtual account tomorrow.

Saturday, June 4, 2011

Virtual Trading Account- An Investment Lab

Today I opened up a Virtual Account at OptionsXpress. They start you off with virtual account balance of 25,000 dollars. I recommend opening a Virtual Account because you can learn the basics of trading and investing without risking your real money. It's A great Training Ground or Stock Investing lab if you will.

Starting next week, I will start using the strategy of covered calls on the Silver ETF (ticker symbol: SLV) I am excited about doing the covered calls on the SLV because it will provide an opportunity to earn weekly income through the weekly options. If you do not know what a covered call is please read What are Covered Call. While I am building up the balance in my actual account, I will practice my theories in the virtual account.

Robert Kiyosaki has a board game called Cashflow 101. He says the best way to learn a skill if you can not actually do it is to simulate or practice it through games. We learn by hearing, seeing, and/or doing (or Auditory, Visual, and Kinesthetic learning) Practicing in a Virtual account provides all three types of learning in regard to investing for income.

If you have any questions or comments please post them in the comment box below.

That's all for now. Have a Great Day. Let's eradicate poverty and build wealth through financial education.

Friday, June 3, 2011

Powerful Beyond Measure

I like this video. Sometimes it feels like I am getting my A$$ET$ Kicked. I don't know how many times I have been knocked down financially but I constantly tell myself that I can find a way to become successful.

I currently have 1 form of income in the stock market, which is dividend income ($0.60). I must continue to build my account. And, I must face my fear of selling. I have a system in place now but I still have not stepped out on faith yet.

We are powerful Beyond Measure. Have a great day.

Parents Do Understand - Rich Dad Poor Dad

It is so funny how fast time flies. I remember listening to Will Smith (The Fresh Prince) back in the day. Now Will is a parent and he is teaching his kids about Robert Kiyosaki's Rich Dad Poor Dad book. I would never have thought that Will would have a problem breaking a poverty mindset. Seeing this inspires me to continue on the  path  to acquire financial education.

What are your thoughts on the book Rich Dad Poor Dad? Please post your comments below.

Let's eradicate poverty and build wealth through financial education.

Thursday, June 2, 2011

Learning from an Amway Founder

Amway is the father of all MLM companies, and It is still going strong. Even when I went to Japan between 2004 and 2006, I was approached by an Amway Rep.

I like the idea of getting 10 customers or setting the goal to make 100 dollars. I also like how he said once a person starts to make money they never leave the business. Once I find the right method I will not turn back either. I have seen many opportunities, but I have never found the right one for me. I will keep searching, and I know I will find or create the right one.

I Laughed and Then I Cried, Quantitative Easing defined

This Afternoon I checked my email messages. One of them said please tell me if you laugh or cry after watching this video. I both laughed and cried. Why? I laughed because it made a subject that sounds so complex (quantitative easing) so simple (spending a lot of money). I Cried becasue it clearly shows that we are driving down the path of distruction with the pedal to the metal.

I once was told that if you drop a frog in hot water it will jump right out. However, if you put a frog in water and slowly turn up the heat, the frog will sit there until it boils to death becasue it is not aware of the tempreture change. After watching this video, I felt like we were the frog waiting to boil to death.

Wednesday, June 1, 2011

Making Money Make Money

Robert Kiyosaki constantly puts out inforamation that empowers people. I am excited about learning how to make money with money. By buying stocks that pay dividends I am making my money make money. I have finally found a way to make my money work for me. While my job as a Youth Counselor is my profession, my stocks are currently serving as my business and allowing me to start on the path to wealth.

If I can discipline myself to buy assets consistently, then I can build wealth. Below is a powerpoint I use to share ideas put forth by Robert Kiyosaki. Please download it, if you find it to be of use.

How To Be Wealthy, The Short Version

Here's my new E-Report. The Fist report was about 28 pages long. When I went back and reviewed the material, I felt like I could improve it by making it shorter and getting straight to the point. Hence, the tile "How To Be Wealthy, The Short Version".