On to the Next

Anything can happen but here's where I am as of market close today.
As you can see, this plan is profitable. I wasn't hoping to repeat the performance of NCR but it looks like I beat it. Too bad I only "invested" $170.

Over the next few weeks, I won't be saying much. This is because of two reasons. One is that I have convinced myself my system works and hopefully I have convinced you as well. This means that as long as I believe the market will continue to rise, I can apply it at any time. This brings up the second reason.

I'm taking out the money in this account and applying it to another avenue of wealth. This is in order to more quickly clear all outstanding debt and build up capital to return to the market. I was fortunate enough to speak with and become a part of a "mastermind" group of real estate investors. Unfortunately, venturing into this arena requires a few thousand dollars. I will be sacrificing these thousands knowing that it will be fully recouped within a month or two, leaving only profits afterwards.

There's more than one way to attain wealth in this country and I am grateful to God for putting me in the right place at the right time and with the right people to be able to implement the two avenues that have produced the most riches: stock market and real estate. My truest interest lies in the stock market but if I can use real estate to fund my brokerage account in order to compound the effect of those gains you've seen, then why not?

Don't be surprised if I turn these two into more than just private affairs and develop them into fantastic businesses in the not so distant future. I have non-selfish things I want to accomplish with the wealth I attain and the journey has only just begun.

Look. Nobody's Perfect

I wanted to post on Monday to show you just how badly your calculations and analysis can go because the rest of "the herd" doesn't think. The market went down almost 2% for absolutely no good reason at all. Now if the market goes down 2%, anyone who holds options for stocks that also go down that much will have lost about 20%. Fortunately for me, it wasn't THAT bad, but it was bad.

Tuesday, the markets came back. At the end of the day the loss from Monday had been recouped and the year to date (YTD) loss had come to -$274 and some cents. I wanted to wait till Friday to show you this but the excitement at present is incredible. Two things happened to my holdings. Half increased in value, and half decreased in value. The wonderful thing about this is it allowed me to further look into why and I have come to a conclusion that will be of benefit in the future.

The two that went down in value did not go down because my analysis was wrong. They went down because of the timing of my purchase. There is a certain indicator that lets you know whether too many people have bought into a stock or too many people have sold. I had previously ignored this. Turns out I entered those positions when too many people had bought into it. Since price is controlled by supply and demand, naturally the positions decreased in value as the number of people buying reduced. The loss is sitting at exactly 20% but I still have until the third Friday of February (21st) to make a profit. Nobody's perfect so losses are expected. As long as the wins outweigh the losses, I'll be fine.

But let me not bog you down with all this talk. Take a look at the %Gain for the NCR position below (third row). This is what can happen if everything is perfect. Now remember, we are only aiming for a maximum of 20% increase monthly but if things can go this well for a position, we'll just continue to rake in the profits. I will be selling the NCR call tomorrow and replacing it with something else because they become worthless when the market closes on Friday. Again, nobody's perfect, but look at that gain in value when you're successful.

Let's Get This Straight

It's the first of the month and the first of the year 2014. I just want to get some things straight before this catalog of exciting times continues.
The blog is titled "Get Rich Quick(er)" for a reason. And what is that reason? Well. Simply put. For the reasons hinted at in my first post, I want to get rich. Quick. BUT. I must heed the words of Solomon as I know them. I'm certain these have been put in many places before but I will chose the words from the Bible.

Proverbs 13:11

Wealth gotten by vanity shall be diminished: but he that gathereth by labour shall increase. (KJV)

Wealth gained hastily will dwindle, but whoever gathers little by little will increase it. (ESV)

Wealth [not earned but] won in haste or unjustly or from the production of things for vain or detrimental use [such riches] will dwindle away, but he who gathers little by little will increase [his riches]. (AMP)

Easy come, easy go, but steady diligence pays off. (MSG)

Proverbs 28:22

He that hasteth to be rich hath an evil eye, and considereth not that poverty shall come upon him. (KJV)

A stingy man hastens after wealth and does not know thatpoverty will come upon him. (ESV)

He who has an evil and covetous eye hastens to be rich and knows not that want will come upon him. (AMP)

A miser in a hurry to get rich doesn’t know that he’ll end up broke. (MSG)

What am I getting from this? It means no matter how fast I wish to be rich, I have no choice but to do it gradually and to put in some kind of effort. The aim is to acquire wealth in such a way that I am doing something just with a degree of diligence. It means I must not be desperate to be wealthy. If it comes fastER than expected, fine, but don't expect it to happen overnight. It means I must be conservative rather than aggressive in my journey to acquire wealth no matter what means it comes about.

And so. First avenue I chose out of my own interest and experimentation from the middle of 2012 to the end of 2013 is the stock market. Now a word of warning. You should never, ever, ever, ever, ever, ever, ever, invest in the market unless you already have 6-12 months of living income secure somewhere safe simply because any money used for investment involves risking a 100% loss. With that said, here's what my brokerage account looks like at the beginning of this new year. The aim is to grow it 5-10 % monthly. I know it is possible because my experience in the past two years has taught me so. And while some see this as aggressive since reinvesting every amount earned means potentially doubling or tripling your money by year's end, it is really not. That's because I will be using a "subavenue", if I can call it that, of the stock market called options.

Have a Happy New Year building wealth!!!
And if you're a Christian, don't forget your 10% tithe. :-P