We learn to grow wealth ourselves. Through repetitive practice of fundamental strategies that embody and empower our monetary system as well as the financial institutions in this system. In the American economy, these opportunities are ripe for those who are in the know.
Have you ever wondered where your social security money is managed? Inflation affecting your capital from ten years ago would have certainly wiped out at least an average of 2% per year if it was in your savings. So have you ever asked yourself: How does the government manages it's money AND your social security?
The government keeps these funds in low risk assets.
What does that even mean you say?
"Hold Assets Not Cash" Well it all goes back to the importance of this old adage. Growing up I heard this saying a lot. I am not totally sure where exactly I have heard it but I have never forgotten the saying itself because I have spent so much time pondering and investigating this information. As strange as it may seem, this information became a guiding piece of knowledge to come back to me years later after I had stopped repeating it in my head and been years in on finding a way to alleviate my financial pressures.
After returning to the stock market with my newly equipped knowledge of accounting, bonds, and the like, I began to attempt to learn to trade and invest like the professionals do. I had already had some serious experience from the options trading I did in the year of 2020 and the stock trading I have done in 2007, 2008, 2017, and 2018. However, I finally decided it was time to figure out how the professionals could possibly be always making huge profits on their income.
How do investment banks and hedge funds, that can afford to pay analysts 100K starting a year to executives $100M+ a year, make so much cash off of the market? And what is it that the analysts and execs are doing to get paid so much!?
The answer put simply: Holding Assets
As strange as that may sound individuals throughout history have made fortunes from this same concept and almost every important security, whether it be gold or stocks or bonds, grants the ability to make money from Holding Assets.
So what is this Holding Assets?
I had always experimented with the possibilities of have a certain large amount of cash to invest and only having to wait for small price changes in a particular direction to generate a positive cash flow.
This strategy seemed to have the least amount of risk potential and the easiest potential for money making however the money would be a small percentage of the whole. So in short, a lot of money to make a significant amount of money in the span of a specific amount of time.
I eventually learned that holding assets can reap benefits of granting anyone the ability to make money any day.
If you made this purchase, please email me because the trade information should be up in two days but I can directly guide you so you can be ready before the start of the next trading week since today is Saturday.
You can sell covered calls and cash backed puts on stocks listed on the major American exchanges.
What this means is that by holding cash as an asset you can make a promise to buy a security at a specific strike price. This would be selling a put option to someone else on the market or just the market in general.
To do this you would go to the market with cash in your account.
Go to an option for one of the stocks on the major exchanges and click a put for an option, expiring in the next market week, with a strike price that is further away from the current price minus the lowest drop in one week over a past time frame of twelve months.
To be even more conservative and make sure the strategy really works you can sell a cash backed put further away.
Before you execute this transaction, go back and check your account balance and also check the amount of cash available to you. Now remember you wont be making any other trades in this account until this testing is complete in one weeks time.
Next, return to your transaction and execute the transaction at the mean price between the ask and bid for the option.
If your transaction is accepeted and goes through you will see your order filled under "orders" section of TD Ameritrade.
Once filled go back to your balances page and check the amount of cash you have on hand. Immediately you should notice that the amount of cash has increased and the amount of your account has increased as well and will now be fluctuating from a different number than the number of dollars you initially started with... MORE DOLLARS!
This is a very low risk strategy.
Next, you will wait. Yes, just wait. Wait until the option either expires
-Stocks
-Bonds
-Real Estate
-In-person Business Ventures
-Online Business Ventures
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