When you
"Learn to Earn the
Income You Deserve"
You can have virtually
anything you want:
But, how do you earn additional income... and
work less?
The Foundation for Financial Freedom has developed
this special 3-step educational process to help you earn more income so
you can achieve your goals and find financial freedom for your family:
-
Pre-requisite to all successful investing is learning to
Buy Low at Support and Sell High at Resistance levels by learning to
read candlestick charts.
-
Select appropriate
investments (stocks, ETFs,) that are following the
market's momentum where you can make money in any stock market direction -
up, down or sideways.
-
Safely earn 20% Income with this
proven investment strategy that over 95% of investors and brokers
just don't know or don't know how to use effectively -
Secret Revealed!
Disclaimer: This information is provided for educational
purposes only. It is not intended to provide authoritative
guidance or investment advice. You should consult your own
advisor or other professional for assistance.
1. First: Learn to
Buy Low and Sell High by Reading Candlestick Charts:
To be successful at investing you must learn to Buy
Low and Sell High consistently and you can do this by recognizing
Support and Resistance levels on candlestick charts.
-
Recognize the current stock market is no longer a long-term buy &
hold investment vehicle (based on the massive losses in Sep. - Nov. '08), but a short-term trading platform utilized by traders.
-
These
traders tend to stop selling stocks at certain (low) price levels
and begin buying them, this is "Support". Likewise, traders also
tend to stop buying stocks at certain (high) price levels and begin
selling them, this is "Resistance".
-
For example: The
following chart (Figure.1) on McDonalds
(MCD) from Aug - Oct '08:
-
In early August Support(1) is at $60 and the stock
moves up and hits Resistance(1) at $66 and falls down, back to $60
in early September.
-
It bounces back up near Resistance(1) $66 and falls
back to Support(1) at $60 in late September.
-
It then retests Support(1) at $60 in early Oct. and
breaks down at (A), falling to a new low less than $50 but builds
Support(2) near $51.50.
-
It retests the new Support(2) twice in Oct. while
establishing a new Resistance(2) at $60, which was the old
Support(1) level - a very common event when resistance and support
levels change positions (this is very significant)!
-
Note: If you traded MCD during Aug. - Sep. and
recognized these Support ($60) and Resistance ($66)
levels, you could have bought the stock near $60 and sold it near
$66 for $6 profit and 10% ROI.
Figure-1.
Updated MCD chart (Fig. 1A)
shows Support held at (52) in November (Buy near $52) with Resistance
being tested ($60) in early December, opportunity to Sell near $60 =
($60 - $52) / $52 = 15.4% ROI. This is an excellent example that shows
how to use these charts to determine when to Buy Low (at $52) and Sell
High (at $60) to earn a quick profit of 15% in less than 2-weeks.
Figure 1A.
Note: Learn more about
support and resistance
levels and why use candlestick charts
instead of basic line charts - very important!
Join the Foundation today! Membership is FREE, you have No Risk or Obligation
and will learn:
-
The Golden Rule to
Successful Investing by recognizing when to Buy Low and Sell High
-
How to select the
appropriate assets that are "in favor" and following Market Momentum
-
Safely earn 20% Income
with today's stock market in any direction - up, down or sideways -
Join!
2. Second:
Know when to
Select Appropriate Investments:
The
key to selecting the right investments (stocks, Exchange Traded Funds -
ETF), is to recognize which sectors are "in
favor" with the stock market's momentum - up, down or sideways -
this is critical to being successful. Certain criteria is used to find
the most appropriate investments from the thousands of stocks and ETF's
in the market, but which ones and why?
Because of the current market volatility and influence
by hedge funds, it is more advisable and less risky to invest in sector
ETFs than individual stocks. Here's a few ETF examples:
-
Energy - XLE
-
Finance - XLF
-
Technology - XLK
-
Transports - IYT
-
Regional Banking - KRE
-
Coal - KOL
-
Oil Services - OIH
-
Oil - USO
-
Natural Gas - UNG
-
US Dollar - UUP
Note: ETF's are preferred over Mutual Funds because of
these ETF advantages:
-
ETFs trade like stocks - you can set limit price
orders and trade any time during the day
-
Note: Mutual Funds trade at Net Asset Value (NAV)
only at the end of the trading day
-
ETFs trade with options - Puts (downside) and Calls
(upside) for added protection and leverage
-
ETFs have lower fees and generally cost less
(0.35% fee vs. 1.40% avg. fee for mutual funds)
-
ETFs are easy to find and research (Ref:
www.ETFconnect.com)
-
ETFs are generally very liquid with high trading
volume
Here are some stocks in these sectors that are
favored by the traders and tend to make big moves:
-
Transocean - RIG
-
Apple - AAPL (RIMM, )
-
Intuitive Surgical - ISRG
-
First Solar - FSLR
-
MasterCard - MA (V, AXP, )
-
Chicago Mercantile
Exchange - CME (ICE, )
-
Potash - POT (IPI, MON,
MOS,)
-
CF Industries - CF (CLF, )
and many more...
Note: One of the primary concerns with trading
individual stock is when some know-it-all analyst makes an inappropriate
downgrade or negative comment on stock that you're invested in and it
gets clobbered! But, there are ways to protect yourself from these
downside risks... for advanced traders!
As an educational service, The Foundation can
provide you with a list of real-time examples of stocks and ETFs
that are favored to move with the market. This is a significant benefit
of how The Foundation can help you by guiding you through the complex
stock market and reducing your risk and time to figure it out on your
own. We're here to help you.
Join the Foundation today! Membership is FREE, you have No Risk or Obligation
and will learn:
-
The Golden Rule to
Successful Investing by recognizing when to Buy Low and Sell High
-
How to select the
appropriate assets that are "in favor" and following Market Momentum
-
Safely earn 20% Income
with today's stock market in any direction - up, down or sideways -
Join!
3. Third:
How to
Safely Earn 20% Income:
You've
learned to recognize when to Buy Low at Support and Sell High at
Resistance levels and which stocks and ETFs to invest in that are "in favor" with market momentum behind them.
Now it's time to learn how to safely earn an average
20% income in any market - up, down or sideways
- you can make money. First consider how much money you can invest to
start, then you would look to purchase (500 - 1000) shares of a low cost
stock or ETF (typically under $20 per share).
Note: Before you invest any money, please consider "Paper
Trading" first, take your time so you gain a clear understanding of
this 3-step process on a clean sheet of paper - try it first
- paper trade! Join!
The average 20%
income consists of making only (6) trades
per year and earning 3%-4% on average per trade for a total return of
(18% - 24%) or 20% income. The following strategy is not well known
by over 95% of investors and brokers, because they don't want to take the time to learn this secret...
Secret Revealed:
The best way you can earn an average 20% income
is by
owning (500-1000) shares of select stock or ETFs and then sell or
Write a Covered Call (WCC) option to earn the optimum premium income on a
regular basis or approximately 6-times (trades) a year. For
example:
-
Buy
(500) shares of XYZ stock at Support for a low price of $10 =
$5,000 investment (in IRA?)
-
As
this favored stock moves up with the momentum of the market and stops at Resistance of $13 and turns down, you could sell or
Write (5) contracts of the current / next month "at-the-money" $13 strike
price Call option for maybe $0.40 and earn (500 x $0.40) $200 for a
4% return on your investment (ROI) as income.
-
There are (3)
Call option positions (see Figure-2):
1) Out of The Money - OTM (Call option strike price is
above stock price) and there is moderate Time Value (TV) premium and no
Intrinsic (real) Value (IV)
2) At The Money - ATM (Call option strike price
is at stock
price) and has the highest Time Value (TV) premium and no Intrinsic
(real) Value (IV)
3) In The Money - ITM (Call option strike price is
below the stock price) and has both Time Value (TV) and Intrinsic Value
(IV) premiums (Ex: Stock Price - Strike Price = $13 - $10 = $3)
Strategy: Time Value (TV) goes to $0 at option
expiration (3rd Friday of current month options), so you want to be selling the
highest Time Value (Call option At-The-Money) to optimize WCC premium
income. This is why we do NOT recommend Broker's Buy-Write strategy
(which is: WCC the same time you buy the stock, at Support), while
optimum WCC premium income is selling the Call option at Resistance!
(Brokers have it wrong - they just want your double transaction
fee!)
Figure-2.
Note:
To be "Covered" you need to own (100) shares of stock or ETF
for every (1) option contract you sell or Write (Ex. 500 shares
stock, ETF = 5
option contracts = 100:1 ratio).
-
Results for Up, Down
or Sideways market - you have very low risk and you can
make money as income in each direction:
-
Down Market:
You win because as the XYZ stock price
falls to $12, $11 or $10 (Support level) the premium on the option
you sold will also decline in value to maybe $0.30, $0.20 or $0.10
or even $0.00 worthless at options expiration (the 3rd Friday of the
current month, for example: December options expire 12/19/08). You
get to keep the premium $0.40 per share as income for this month
$200 = 4% ROI as income!
Note: Advanced traders may consider cheap
insurance (buying OTM Put option) as a hedge.
Note: Repeat this process approximately 6-times a year (every other
month) and you can earn between (3%-4%) per trade (x 6 trades / year) = 18%-24% range or
20% average
income
Note:
The key to this successful strategy is what you first learned in
step-1; To recognize and
Buy Low at Support and Sell High (WCC) at
Resistance - this is the key to optimize your income and ROI. Few investors and brokers know how to
"effectively" execute this strategy because they don't know how to "time
the market" be reading Candlestick Charts (Support and Resistance
Levels) - now you do!
Get started today!
Learn to Earn the Income You Deserve
by "paper trading" first to gain a solid understanding of how this works
and build you confidence before you invest your money.
Join the Foundation today! Membership is FREE, you have No Risk or Obligation!
When you join the Foundation, we will guide you
through this Special 3-step Educational process to help you - Learn to
Earn the Income You Deserve:
-
Learn to
utilize the Golden Rule of Successful Investing; Buy Low & Sell
High by recognizing support and resistance levels on candlestick
charts. (Learn the
(5) elements
of candlesticks)
-
Know what assets are appropriate in today's volatile market (not
mutual funds) and when is the right time to invest and sell to
lock-in your profits from real-time market examples
-
Know how to safely earn 20% income in any stock market; up, down or
sideways and make money to build your confidence to
take control of your financial investments.
Note: Paper Trade first! Get comfortable
understanding how this 3-step process works, see actual results of "what
if" trading from our real-time examples - before you invest any
money!
Join the Foundation today! Membership is FREE, you have No Risk or Obligation!
What other investors
say about the
Foundation's focused solution:
-
"You have opened my eyes to investing and how to really make money,
safely in the stock market..." Alfred D., Denver
-
Thanks for the education on reading charts and using candlesticks,
its easier and more useful than I thought possible." Andrew C.,
Chicago
-
"I've made more money than you said I could and in less time. Thanks
for the great idea on writing covered calls, it really works."
Tom O., Fort Lauderdale
-
"Your education has given me the confidence to take control of my
IRA from my broker and I feel so much more focused on my family's financial
security." Susan L., Maine
-
"The
ETFs you listed have turned out to be a better short-term investment
than my mutual funds where I never made money." Don D., St Louis
Get started today by Paper Trading first, so you can
learn this strategy and get comfortable with it before you invest any
money.
Join the Foundation today! Membership is FREE, you have No Risk or Obligation
and will learn:
-
The Golden Rule to
Successful Investing by recognizing when to Buy Low and Sell High
-
How to select the
appropriate assets that are "in favor" and following Market Momentum
-
Safely earn 20% Income
with today's stock market in any direction - up, down or sideways -
Join!
Learn to Earn the Income You Deserve!
BONUS: The S&P 500 is in
a dangerous "M" pattern,
what does it
mean for your investing?
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