6 steps to building a wealth creation system and ongoing cashflow as a Millennal

Your window to build wealth is not over, but with every year that passes the gap in the window gets smaller.

I want to be really clear about this subject. If I didn’t believe that you could build wealth as I have then I would not be spending my vaulable sunday time writing these newsletters.

I have my system in place, and my wealth grows monthly. In fact I believe now is the best time to build wealth. We have so many tools at our disposable that the people that I learned from didn’t. Just as an example; you may not know that when I started doing the market I had to draw out and make my own charts. I wasn’t able to afford a $1,000 a month charting service.

Now with the changes in tech we all get free charts with our options accounts. If you want a premium service then at most you may pay $250 a month! That is change compared to the amount of money you can gross from using the tool properly.

You have more information then ever before at your finger tips, but that is both a blessing and a crutch.

You have to understand how to filter the information through the system you setup. If the information doesn’t fit in growing your system then shut the information out.

Let us first start with the 4 biggest factors in your building in today’s economic climate.

1. Inflation

2. Taxes

3. Fear and Greed

4. Time

Inflation is always going to be here with us. It is something that we must not fear because we can beat it as investors.

Now taxes that is not my department but I find the more I make the less I care what I pay.

Fear and greed are something you are going to have to battle daily until your mindset grows to understand that you can use fear to your advantage by waiting to smell it in the air and running down opportunity.

Time is always going to work against you until you make the changes to grow your money at rate greater than that of what you can earn by the hour. You can do that with options trades.

1) The Inflation Monster… and how to chain it

You can ethier be an American whose fortunes move up and down with the economic winds of change or you can be an American Investor and determine just how much you let inflation effect your income.

That’s right I know I sound ridiculous, well you know what I think sounds ridiculous? Not being in control of your life and your income.

Make the choice and start keeping up with your own inflation number.

Just a simple sheet of paper that you keep track of items you buy often and then how much those items increase over the next 12 months.

That percentage difference becomes your own inflation number. That is your mark as an investor to increase your income by at least that much over the following 12 months.

If your inflation number is 12% then increase your income by 20%. Then you can reach out a helping hand the next time someone you love is complaining about inflation and throwing things at the t.v. You can be the hero and say “ Jim let me show you what I learned from this newsletter on how to beat inflation.”

2) Creating a source of income that chokes out inflation

Use index options to trade your way to a seriously lucrative income stream. These indexes like $RUT, $SPX, SPY, QQQ mirrior the larger market movements of the $SP500, $COMPQ, and the $FTW5000.

The market will always give you tradable movement usually 1-3 times a month and the index options are still cheap enough that you can trade them with a few thousand dollars just starting out.

Really you can do index trades from 1,000s all the way up to millions.

Target your gains at a minimum of 20% a month. Not gaining 20% on the whole principle, but doing a trade that gains a minimum of 20% per month.

Because of taxes you will not ever have a fully 20% return because a 1/3 of everything you earn in a trading situation should go into a tax account for later.

Move 1/3 of every profit out to pay your taxes at years end. Leave the other 2/3 in the account to grow your princple and slowly build the account size month by month.

Raise your amount put into each and that same 20% gain will grow in dollar size.

12 months, 24 months, 36 months once you have say $100,000 in that account. Then take 1/3 of the profit form the next trade as your income for that month.

That comes out to about $6,000.

How much does inflation matter now??

You also have the other 1/3 staying in the account to grow the principle. Effectively giving you an income increase on an ongoing basis.

Talk about cashflow baby!

You tell me, can you live off that? If not them keep growing the account.

I have seen traders with $1,000,000 index trading accounts. Imagine living off 20% of that evey month. Lifestyle goals anyone?

3) Focused Effort Compounds Results

Do not make the mistake of trying to trade all the indexes at once. When you are starting out pick on index for example I trade alot of the SPY.

Then I use the $SP500 as my trend, my market support for when to trade.

How do I know what the SP500 is doing?

I make a journal entry on the indice everyday. I study what the charts are doing, mainly keeping an eye on the Weekly, 3day, and Daily with a little checking on the Monthly for trend changes.

I do not care what is going on with the rest of the market because my focus with this account is clear. Grow the balance month by month by 20%. Nothing else matters.

4) Trade when you can not when you have to

You have to treat this as if you are building a new income stream, a cash flowing business.

It takes time in the beginning to build up the capital. Just keep in mind your long range goals. Do not let your greed take hold and get you to force trades so one month you can have 40% growth instead of 20%.

If you have a trade that you close at 100% excellent! Then you can analyze that trade for why that worked so well, but your goal for the next month is still 20%.

The month you start forcing trades is the month you start moving backwards.

If you need to blow off some steam then spend a little of your profit. Take your family out for a meal, or on vacation.

For me I like buying my wife sunglasses, jewelry, or myself new guitars.

Just do not spend more than 1/3 of your profit from that one trade.

5) Enter, Exit, Analzye, Evaulate, Repeat

The simplicity of this is the niche focused approach. You can learn by practicing and praticing your trades using historical charts for the index.

Your historical practice trades are the way you learn the setups that have the highest probability of working and the setups that you should leave alone.

Just practice and then when you trade with real money 1, 2, or 3 times a month it is still just a learning experience with money.

Analzye and keep track of every part of the trade then make notes at the close.

Start with what you did well then move on to what you can improve on next time.

6) Add Fuel to Fire

Once you get to where you are profitable around 70 - 80 % of the time with one index add in another.

Then once you build your account up to the point where you can be happy with your 1/3 income amount off that account prinicple.

Start moving 1/3 to a long term investment account. Then you can start building other income streams by making smart investments in stock buys and other businesses.

My conclusion here is we have a better opportunity to get wealthy here in America in today’s economy than ever before!

I am excited about my future, my families future, and your future! Truely I believe a stock market income is just the start of the income streams available to us as millinneals.

• I expect this week to be a continuation of the downward movement in the overall markets espically the $COMPQ and $SP500

  I still own my NVDA September $110 Puts the stock closed 9/6 @$102. Only problem is I did not buy enough time and the stock is going to continue down when I have to sell out on Tuesday.

  My shortlist this week:

• GS Put is highly probable

• SPY obvious Put in my opinion

• BLK put is possible

• CMI put

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 get the edge to earn consistent, larger returns, than most professionals on Wall Street.

Your Friend in Success,

Robert M Morris

*Please note this is not financial advice as I am not a financial advisor and honestly not sure I want to be. Give this information to your own financial advisor before acting on it in your own voliation.