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| ISBN-13: | 9781491818367 |
|---|---|
| Publisher: | AuthorHouse |
| Publication date: | 10/11/2013 |
| Sold by: | Barnes & Noble |
| Format: | eBook |
| Pages: | 96 |
| File size: | 6 MB |
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HOW ANYONE CAN MAKE MONEY FROM THE STOCK MARKETS
Walk The Talk Ministries
By Brother Roland
AuthorHouse
Copyright © 2013 Walk The Talk MinistriesAll rights reserved.
ISBN: 978-1-4918-1838-1
CHAPTER 1
You need money to make money
In Proverbs 13: 22 God's word says, "A good man leaveth an inheritance to his children's children: and the wealth of the sinner is laid up for the just." If you are someone who does not do everything this book instructs you to do, then the wealth of the sinners may not be laid up for you. I am talking about your own personal money tree, or a place you can go to anytime you need money.
If you are one who does not need money and dislikes following instructions, then just stop reading this book and give it to someone who will. You can always go back to doing whatsoever you were doing before you got this book. A just person will not only follow the instructions given in this book to the letter, but will not let pride or greed get in the way of letting their money make money for them.
The money that you need to help you make money is not going to fall out of the sky right into your lap. Unless you were born with a silver spoon in your mouth or married to someone who has lots of money or part of the privileged elite, you have to work for it.
To make the money you want there are things that need to be done and they are not going to get done all by their self. Until you treat this like a real job or an investment for your future retirement no one can do it for you. Ask yourself, What should I do so I can quit my job and live anywhere I want, do anything I want and go anywhere I want whenever I want in less than five years? When you are ready to go forward, just continue reading.
The first thing you need to do is find a place for your money to make more money for you. Just pick up a phone book and look for a brokerage firm in your area or go on line. If you don't have internet service or a computer you can go to your local library and use one of theirs. With today's technology you can do almost everything on a smart phone. By the way, this new job or business will allow you to deduct computer and internet service expenses. You need to be looking at the bigger picture.
Some brokerage firms will let you open an account with as little as $500.00 dollars; but, the more money you have the cheaper your commission will be. I've see them go from nothing to more than $11.00 dollars per trade. A trade is anytime you buy or sell a stock. You pay that dollar amount or commission every time you make a trade, weather you buy or sell one stock or a thousand stocks. That's how they make money to buy and sell for you.
When you find a place that will work with you, the first thing you have to do is open an (Rollover) I R A Brokerage Account. Otherwise, every time you sell a stock, you have to pay a large tax on any monies your money made for you. This means you will have less money in your account to make more money for you. The only time you have to pay taxes on this money is when you take it out of your account. Your money is safe in this account until you reach the age of seventy years old then you will be forced to take a portion out every year for retirement.
If you have a 401k or any other type of retirement account that you can roll over into this new I R A Brokerage account do so at this time. This will be the tax free money that you will be trading with and the only time you pay taxes on that money is when you take it out of your account. If you don't have a retirement account and you are 50 years old or less, you can start one with as little as $5,000.00 dollars. If you are 50, the most you can open one with is 6, 000.00 dollars. This can be tax differed on your annual income.
Then every year you can tax defer another five or six thousand. It's almost like having free money to make money with. The more money you have to trade with the sooner you can retire. If you are married, then you can open up two accounts and have twice the money to trade with.
Until you start trading, place your money in a Money Market Fund. When you are ready to make a trade move the money from the Money Market Fund to whatever stock you want to purchase. Any time your money is not making money for you, it should go back into the Money Market Fund. When you want to know how much money you have available to trade with, just check your Money Market Fund account. Whenever you sell your stock(s), instruct your broker to place your money back into your Money Market Fund. This process may take three to five business days before it becomes available to trade with.
If you attempt to buy or sell a stock before you have sufficient funds available, they will shut you down up to ninety days or longer. This is why it's so important to wait three to five days for your funds to clear so you have money to trade with. You can trade by phone with your broker or do it yourself on line.
CHAPTER 2
Finding the right stocks to buy and sell
The first criteria in find the right stock to buy and sell: It is best to find a stock that has been around for ten to twenty years. Like the brand name of your favorite food or restaurant that's been around for a long time and not planning to go away at any time soon.
In order to avoid any copy rights and names, I will use BR or Brother Roland (BR) for all of the charts in this book. This way you will be looking at charts drown up by myself to illustrate or show you what I'm talking about. On the next page you will find two examples of what to look for. On page 16, chart # 1 shows you where BR has been around for less than 3 years. I've been told that more than 50% of new company's die or go bankrupt before 2 years.
You want to find stocks that's been around for a while, not here today and gone tomorrow. Like # 2 and # 3 charts on page 17. Because of 911 many stocks took a mud dive as you can see to the right of the graft where the number four is on page 21. Please take a minute and study this page and get familiar with where everything is you need to know about what your stock is doing. This 35 year chart for Brother Roland (BR) is only an imaginary stock used to illustrate a graft of what you're looking for, and is not one of over 8,000 stocks you can pull up on the computer anytime you need it.
If you go to any search engine and click on finance it will take you to a financial page. From that page you will find a place you can get a quote or search for any stock, with a box next to it. Just put in a company's name or symbol in the box and then click (Get Quotes) you will get a picture of a chart and right below the chart you can click on a day or year, just pick one. It will look something like the chart that is on the next page.
1) This is where you will find the names of the stock you are looking at Following the name is the symbol or letter(s) used to identify the stock you're looking at.
2) This indicates a dollar amount your stock can go to.
3) This indicates where the stock was at the date indicated.
4) This shows what the stock did from the start 35 years ago up to 15 minutes ago.
5) You can click anywhere on this bar to find out what the stock did from one day all the way down to the beginning when the stock was first started.
6) This tells you where the stock is trading at right now. To the right of this dollar amount you can see what your stock made or lost since the market opened.
7) This tells you where the stock closed the day before, where it opened at the start of the trading day, it even tells you the 52 week low and high your stock did. All of these figures are constantly being updated throughout the day.
8) This is your page index. You can click on anything from quotes to a balance sheet. Anything you want to know about your stock can be found here.
9) This is where you can check different stocks using the same chart. Just put in the new stock cymbal or name and the click (Get Chart.)
10) This is when you want to get a quotes on any other stock. Just put in the new stock cymbal or name and then click on (Get Quotes.) Right below this is a indicator showing you how the Dow and Nasdaq are doing.
I have taken the time to mark off the important places for you to familiarize yourself with. Every search engine has its own finance page. When you find the right charts that work for you, then click on it and send it to your favorites file on your computer and when you want to use it just click on favorites.
You will be looking for 20 or more of these kinds of stocks for your portfolio.
CHAPTER 3
You want to find stocks that have a dividend
Your next criteria is to find stocks that have a dividend or set amount that will be paid to the shareholders of that stock. Some stocks payout once a year and others quarterly. The set amount can be .01 to $4.00 dollars or more each time for every stock you own. If you're going to buy and sell stocks, you might as well buy stocks that have dividends. Part of my portfolio consists of having over 50 stocks that pays out a dividend. I only buy three stocks if it is priced under $50.00 dollars and one if the stock is more than $50.00 dollars. (No more than 10% of your whole portfolio should go into this.)
Never keep all your eggs in one basket. This is also a good place to keep a small amount of your money for three reasons.
1) The dividends will give you 5% or more on the money you keep in the stocks you are holding.
2) If the stock you're in take's a mud dive or you need extra cash in your trade.
3) Anytime I look at my portfolio I can see what all of my stocks are doing at the same time.
The following words on this page may be repeated from a previous chapter but this is not a mistake, I have deliberately repeated the words necessary to connect you to explaining dividends.
If you go to any search engine on your computer and click on finance it will take you a financial page. From that page you will find a place you can get a quote or search for any stock, with a box next to it. Just put in a company's name or symbol in the box and then click (Get Quotes). Now look on the page index and look for dividends. If you can't find it on that page, type in dividends. It will look something like the next page. If you still can't find it ask your Brokerage firm how to find it on their web site. You will save lots of time by placing this web site on your favorites list or even better by placing it on a short cut or making an app. on the screen when you turn your computer on. So all you have to do is click on that app. and this will save you lots of time when you are looking for the right stock to put into your portfolio. Click on dividends and you will get a page that looks like the next page. Let's have a look, shall we?
This quote page is quoting Brother Roland (BR). As you can see on the top left hand corner of the page. Right below the Company name is a box where you can put any stock you want and click on go. Then all you have to do is click on dividends: located on the left hand side of your page and something like the example you have on page 27 will come up.
Every stock is different; as well as the time you need to own them.
1) This is where you find the name of the stock you're looking at.
2) This is where you would go to change the stock you want to look at. All you would do is type in the new name or symbol of the stock you want and then click go.
3) This is your index to where you can go back to the summary page you was just on or anywhere else you want to go to.
4) This is the date that you make money if you don't sell that stock until the following day after that date.
5) This tells you how much money the stock will make on each share or stocks you own.
6) This is the date you must already own the stock. You must buy this stock one day before that date in order to make money on this dividend.
Let's say you bought 1,000 shares of (BR) Brother Roland Company stock on 6/12/ 2011 and you sold it on 7/11/2011, how much money did your money make for you?
1,000 x .32 = 320.00
What would you have made if the dividend was .50 or 1.00?
1,000 x .50 = 500.00 1,000 x 1.00 = 1,000.00
Your 29 day investment made you 320.00 dollars. This might be more than what your bank is giving you for your money, but it's not enough for you to retire on ...
Let's look at another example shall we?
So if you buy 1,000 shares of Brother Roland Stock on 3/11/2012 and sold 1,000 shares of Brother Roland Stocks on 4/11/2012 how much money did your money make with a .41 cent dividend?
1,000 x .41 = 410.00 dollars
How much money would you have made if you sold 500 shares of Brother Roland, Stock on 4/09/ 2012 and 500 shares of Brother Roland, Inc. Stock on 4/13/2012 how much money did your money make with a .41 cent dividend?
500 x .41 = 205.00 dollars
In order to make money from any dividends, you must own that stock between the dates given. As you can see the amounts change as well as dates. This stock ranges from .29 to .75 cents.
Let's take this one step further, shall we?
If you click on Historical Prices on you index, something like your next page will pop up.
Say you buy 1,000 shares of Brother Roland Stock on 3/9/12 for $30.40 dollars a share and sold 1,000 shares of Brother Roland Stocks on 4/11/12 at $31.50 a share how much money did your money make with a .41 cent dividend?
1,000 x .41 = $ 410.00 dollars 1,000 x 1.10 = $1,100.00 dollars
You made a total of $1,510.00 dollars in 30 days. You might be saying to yourself, That's to good to be true? What if the stock went down $1.10 instead of up $1.10? If you keep the stocks it will make money for you as long as you don't sell them below the price you bought them at. Now what if you knew that the price of the stock was going to go back up $6.00 dollars, but you didn't know when? Lets say you buy 10,000 shares, how much would you have made then?
$1,510.00 x 10 = $15,100.00 dollars
What if you sold after it went $3.00 dollars, how much money would your money have made for you?
$ 15,100.00 x 3 = $45, 300.00 dollars
Is this starting to look more like retirement to you? How about after three or more trades just like that one? Your next chapter will show you which stocks will move faster than others, so your money isn't tied up for a long time. Let's have a look, shall we?
CHAPTER 4
You want to find stocks that move faster
Your next criteria is to separate the men from the boys. You want to get your money to make more money faster. The more up and down a stock moves in one trading day in let's say 40 days; the faster your money can make money for you. Just think about the ocean and how it constantly moves up and down. Every stock you own and play should do the same thing. You're going to find stocks that move more than others, because if the water is stagnant or not going up or down in just a little bit of time it begins to stink and so will you trade. Let's look at the example I have for you on the next page, shall we?
Once you go on your browsers web page and click on finance and put in the stock symbol or name and go there, just click on ...
1) Historical prices.
If you look at example #1 ...
2) Tells us that the stock name is Brother Roland (BR).
3) Indicates how many times the stock went up and down more than .50 cents.
4) Indicates how many times the stock went up and down more than 1.00 dollar.
In order to get these *; you need to look at the high and low on each date and determine which date did what. I put a * in place whenever the stock made .50 cents or more; between column two and three and I put a * every time the stock made over $1.00 dollar between column three and four. I have made three examples for you to examine or look over carefully. Each example shows stocks that are close to the same price range. There are seven or more different columns going across the page.
Column ...
1) What the stock did on that date.
2) What price the stock started or opened at.
3) Tells us the highest price that the stock did all day.
4) Tells us the lowest price that the stock did all day.
5) Tells us where the stock closed at.
6) Tells us how many trades the stock was bought or sold throughout the day.
7) Tells us the difference the stock did in a % from one day to the next.
The * lets us know what the stock did and how often. In 40 days (BR) moved .50 cents or more 21 times and $1.00 or more 2 times.
Now let's look at #2 stock example, shall we?
As you can see here, this stock only moved .50 cents two times out of 40. Although this stock had great dividends in payout; and has been around for a long time: it does not have much up and down movement. This is what I call stagnant water and it stinks. This stock is a good stock to buy for the long term. If a stock does not hit this criteria, it should not be played on a large buy or trade.
* Lesson to learn here. *
I played a slow moving stock like this one and made $1,500.00 dollars on the dividend payout. But, because the stock lost $1.00.00 in the 30 days I held on to it, the $100, 000.00 dollars I bought the stock with would have lost me $8,050.00 dollars. I sold it right after I made my money back, because I knew where the stock was going. It kept me holding on to that stock for four months before I could sell it. Needless to say, It seem to take for ever for that stock to turn around and make money for me. That's why you want a fast moving stock. Don't make the same mistake I did.
(Continues...)
Excerpted from HOW ANYONE CAN MAKE MONEY FROM THE STOCK MARKETS by Brother Roland. Copyright © 2013 Walk The Talk Ministries. Excerpted by permission of AuthorHouse.
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