Saving money requires discipline. One must be willing to budget their money to
cover essentials and put aside the rest.
This often is difficult. One works hard, takes out student loans for
education, and accumulates bills. When one finally does obtain a well-paying profession,
there is an understandable temptation to finally enjoy the fruits of hard work
and success. Who wants to stay at the same standard of living for years just to
pay off student loans? I have developed an investment strategy that requires a
couple years of devoted savings. But once this initial capital investment is
made profit taking will continue the strategy. One can use the profits from the
sale of equities for reinvestment. The strategy can be found on my web site www.capitalistwizard.com.
This web site gives instructions on what equities to buy or sell. The amount invested in is gradual. No more
than $1,500 is invested a week. When stocks gain in value my web site also
instructs in what stop-losses to set. A stop- loss is a request to sell a stock
if the price drops to the stop-loss price. When the stop-loss is higher than
the original purchase price money is made. The equities sold can be reinvested.
In this way one can continue using this investment strategy without having to
increase their savings capital. You still need to save money, but the amount of
savings required for investment continues to become less and less.
To get started using the www.capitalistwizard.com
web site you must choose an online broker.
Then you need to save some money. One could start with a couple thousand,
but a good recommendation would be to open your new online brokerage account
with an initial investment of $10,000. It is like opening a bank savings
account. This is your money. You can withdraw money any time you like. Now that
you are ready to invest you can go to www.capitalistwizard.com to look for stock tips.
I only buy $500 worth of stock at one time. Every week I give no more than
three stock buy tips out at a time. This comes out to no more than $1,500 a
week. To see these tips, you must go to www.capitalistwizard.com
and click on the Current Positions tab. From here you can find the company
name, company description, the ticket symbol, and the number of stock shares to
buy. Use the ticket symbol and number of stock shares to make an equity
purchase on your online broker. Be sure to make the order type as market. As
you continue to invest you will need to continue to save money. An effective
way to handle reinvestments is to make a deposit every time your cash account
goes under $5,000.
To sell stock you also click on the Current Positions tab in
the web site www.capitalistwizard.com. The ticket symbol and number of
shares will be shown. A stop-loss price will also be shown. Remember that we
don’t directly sell stocks but instead set a stop-loss price. You may get
confused about how to set up a stop-loss order. You can call your online
broker. They should have help desk account representatives standing by. They
will be happy to assist you. When a stop-loss order is placed in our online
broker account it only stays active for a designated amount of time before it
becomes cancelled. It is a good idea to set the time-in-force date to five
months into the future. When a stock does well we may want to raise the stop-loss
price. Just look in www.capitalistwizard to see if the stop-loss
order price has gone up for an order that has already been placed. It is easy
to change the order by raising the price. After following this investment
strategy for a year or more you will find the need to send money to your online
broker will become less frequent. Due to the selling of stock you will often
have plenty of money to reinvest. Not all my equity investments make money.
While my overall profit percentages are positive there are some stocks that lose
money. I also place stop-loss orders to guard against excessive lost. A stop-loss order that guards against loss
doesn’t need to have the price altered at all. Once the order is placed it can
be left alone.
Another way to make money through equity investment is to
receive dividend payments. Many corporations award dividend payments to their
stock holders. This is often done quarterly. Profits will be redistributed to
the shareholders. Every share of stock will receive a certain amount of money.
When this happens, you will have a dividend payment deposited into your broker
account. If you look at the portfolio section of my web site, you can see
dividend payments that have been received by individual stocks for the last
year. Individually these dividend payments are small, but they add up. The
total dividend payments I receive each month are significant.
In summary I would just like to emphasize that my investment
strategy works, and it is designed for the small investor. The Portfolio page
of my web site displays the percentage of gains I have made in the past year on
my invested capital. I back up this claim by displaying all the individual
gains or losses I make on individual investments. This article gives you the
directions needed to get started. If you have any questions just click on the Free
Investment Advice tab on the web site. From there you can select 3) Contact and
send me a question. I will be happy to respond.
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