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Archive for October, 2015

portfolio introduction and new trade

(watch video for details)

IRMD – buy with a limit price of $26.50.

Other idea INFN – buy with a limit price of $19.76.

a powerful savings growth vehicle

a powerful savings growth vehicle

Enough about the ineffectual helper.

Where can you find a valuable partner who will actually move the needle in advancing your financial goals?

In other words, how can you actually GROW your savings?

Hard assets such as real estate and precious metals are viable ways to store and sometimes grow your wealth.  However, they are illiquid, meaning they are generally difficult and time consuming to sell and transaction costs are high.

Rental properties are an excellent way to grow your savings that I highly recommend.  I have a rental property myself and it has been a fantastic investment.  Like any investment though, it’s critical that you buy well.   In the case of rental properties this means the right price, the right house and the right neighborhood among other things .  You also have to be prepared to handle ongoing maintenance which can include things such as fixing leaky plumbing and dealing with late rent checks.

This brings me to my favorite way to growth wealth; the stock market.

Financial markets are one of most powerful and convenient vehicles for wealth creation in the history of world.  There’s a reason the wealthiest 10% in America own 81% of all stock assets.

Stocks don’t suffer the same drawbacks that the other asset classes mentioned above do.  They are extremely easy to buy and sell (i.e. they are liquid).  They don’t require ongoing maintenance the way rental properties do.  Another often overlooked advantage they have is you can make money whether they increase or even decrease in value.  In general, all other asset classes must increase in value in order for you to make money.  However, you can make a fortune in stocks even if the stock market crashes by selling short, buying puts or using inverse ETFs.

I understand though, that there are two major hurdles keeping most on the sidelines:

– lack of time

– fear of losing money

Let me briefly address both of these concerns.  Frankly, the learning curve to consistently making money with stocks is actually pretty steep.  You will need to spend a significant amount of time initially to develop a trading system that you trust works.  However, once you have that down it doesn’t really need to take a long time to manage your portfolio.

The second concern is also a valid one.  The stock market is like a minefield.  Buy the wrong stock at the wrong time without a robust risk management plan and you can easily blow up your account.  At a high level, the key is to cut your losers quickly and be patient with your winning trades.  If you do this consistently, you can have more losers than winners and still make money overall.  This is because some of your winning trades will represent much larger percentages than your losers.  For example, if your position sizes are all the same, a single 25% winner more than makes for four 5% losers

I’m not going to lie.  Making money with stocks is not easy.  However, the rewards are immense if you can develop these skills.  I share the nuts and bolts of one of my trading systems in the 821x eBook.  Feel free to take that as a starting place as you start to develop a trading system of your own.



Imagine you’ve been falsely imprisoned.  Having exhausted every conceivable avenue to prove your innocence, you are forced to contemplate the very real possibility of spending the next several decades in jail.

Years of fighting the system have taken their toll.  You begin to think that it might be easier to just accept your fate.  It’s what anyone else in your position would do, you tell yourself.  Besides, they provide all the necessities; food, shelter and clothing.  The prison warden even rewards well behaved inmates with short yard breaks on the weekends.

Fortunately, you snap yourself out of it.  Who are you kidding?  You weren’t meant to live life as a captive.  You were born to be free!

So you start plotting your escape.  Every day you start chipping away at the walls that imprison you.  Every chunk you break out brings you one step closer to your eventual liberation.

Now suppose someone you trust comes along and offers to help.  More hands working together means you can reach your goal faster, so of course you gratefully accept.

The next day, while you’re busting your ass trying to make as much progress as you can, you start to wonder where this “helper” is.  At the end of the month, he finally wanders in with a toothpick and chips a few grains of sand out of your escape tunnel before disappearing for another month.

At first you’re speechless.  WTF?  But it doesn’t take long for you to finally tell this dude, “You know what?  Thanks but, nevermind.”

So in this simple parable of your quest for freedom, who does this ineffectual helper represent?

Your bank or credit union.

At my credit union, savings accounts pay a paltry 0.2% annually and a money market account isn’t much better at 0.3%.

So you’ve scrimped and saved your way to an impressive $50,000 and all your “helper” does is chip in a measly $12.50 in interest your first month.  Ugh.  Nevermind.