- The Under-Accredited Investor
- Posts
- $1,000,000 or a $10,000 Trading Account
$1,000,000 or a $10,000 Trading Account
Plus the Upcoming October Market Move and How to Profit from It.
Welcome to another week of money making opportunity,
Robby your friend in success here,
In today’s letter we will:
Deep Dive into what a $10,000 account trading indexes can do for your lifestyle and how to get started step by step
What is going on in the market? How is the election going effect how we invest
A cool tool I use for creating on going cash flow from my stocks
A sneak peek into something I am beta testing to better serve you guys
1) My new discovery (https://www.borntosell.com/)
I use covered calls on a regular basis to print extra money from stocks I already own or a position that I am not ready to sell. Born to sell helps you to use covered calls specifically for covered calls income without doing the research on what stocks to buy. I love time saving tools and I plan to partner with these guys moving forward so take a look for yourself at this very affortable tool.
Deep Dive
- Creating Income using Index Trades
Would you rather have $1,000,000 cash or a trading account with $10,000 and the knowledge to grow it by 20% a month or more?
That may seem like an easy question to answer. If you had a $1,000,000 cash you could figure out a way to earn 5% a year and live off the interest right?
Well yes that is true, but if you have a 10k trading account you can very quickly find yourself growing the account to $100,000.
Then if you just earn 20% off that $100,000 every quarter you have added $20,000 to your income before taxes.
That is an extra $80,000 a year. Most people working full time jobs do not make that kind of income and you would be earning that with a part time grind of a few hours a week!
I focus on the stock market about 2 hours a day which makes a total of 14 hours a week and every other week I take Sunday’s off so really not even that much time.
Now what if you could earn 20% plus a month then you have a growing cash flow of $20k, $30k, $40k… monthly.
You get the picture. The life changing money, once you own the skill set, is endless.
Imagine knowing you can earn like that without issue.
Imagine the peace of mind for your families financial choices.
Now we should talk about how to make this happen, because all in all it is pretty simple.
The trick is the build up to $10k. That is the magic number because from that point forward things compound really quickly.
Here are the steps to building a index trading income:
Start with a small account at a discount online brokerage ( I like webull or tastytrade)
Open the account with between $1 - $3k
Trade cheap indexes at first like the SPY or QQQ
Focus on one index and keep a journal of how it moves for the first year and only add in another index to trade once your trading ratio is at 70% profitable 30% breakeven/losses
Do trades that are obvious in the current direction of the weekly chart flow
Trade less practice more ( 1-3 trades with real money and 100 or more practice trades) I never said this was easy… just simple
Do trades that are fast but not intraday trades. I like trading off the Daily chart or 144 minute chart
Focus on only doing trades in the direction of the Weekly/3d/ Daily charts
Focus looking for entry points during the first 7 days, middle month, or last 7 days of any month espically earnings months
Use live futures as your support to trade
Buy options one month out in time down to weekly options and buy only 1 -2 strike prices out of the money
Get really choosy about how long you stay in a trade
Capture movements between 5 - 10 days take the profit from the middle of move and never look at the profit until you have sold out of the trade
Once you have a profitable trade for the month stay on the sidelines with your money the rest of the month for the entire first year
The number one goal here is to protect and grow your confidence in your own abilities. The number two goal is to protect the account from your own greed when you have a profitable trade.
You will be amazed at the power of compounding in your account. Start small and do not spend the money from this account until you build up over $10,000. That $10k is a sort of magic point at which the tides turn in favor of massive compounding. Make sure to increase the amount you put into the trades gradually but consistently.
When you are building this account the best way to accomplish income long term is to stay disciplined with the goal for this one account. You can start other accounts with other money but this account has one goal.
Creating Lifestyle Income that Outpaces Inflation without adding on more work. That is the only goal!
Eventually you will create a printing press for your money and the work to create the income goes away.
You accomplish the work going away by becoming an expert in the movement of the index you are trading overtime.
You pick an index and indice that moves the index; for example $SPX(SPY) and the indice is $SP500
You get a journal and start keeping up with how the SP500 moves daily. What makes it move and why
Overtime you will actually become correct more than you are wrong and you will have major confidence in knowing when the trades are going to setup.
In closing,
The account will grow huge and you will move the money after taxes to provide for lifestyle changes in your family. You will see that as the money stacks your stress about money related issuses in life will disappear.
On to the current state of the markets and our fine American political system that is causing so much turmoil for us as investors.
I am only 33 but this has happened in the market during every presidental election year that I have traded and invested through.
I am going to share what I have learned from some very successful hedge fund managers about how the markets actually are effected by the election.
Bottom line is the election matters when it is an unknown. Meaning we should see no major movements until we have a newly elected president.
Once we have a president elect then the unknown is over and the markets go back to business as usual.
However with this current market, business as usual is going to be major downside movement sometime between November and January.
The charts are ready for major profit taking and it will not matter market wide who is president.
I’m sorry to burst the bubble of your right or left voting mind, but when it comes to the market I cannot afford to care about democrat or republican and you cannot ethier.
WE HAVE TO REMAIN OBJECTIVE.
I want to here from you, I have a simple form for you to let me know what your questions are about the stock market and building a stock market income.
Click this line here for the form
Or the button below
I want to personallly welcome everyone that is new since last week’s edition.
Welcome to the Investor Family!
The goal here is for to learn the edge that allows you to create financial success on your terms in the limited extra time you have available.
Your Friend in Success,
Robert M Morris
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