stock market correction = uptrending

If you are a stock market follower you’d notice the different wording journalist are using such as “optimistic” that we hit our low just recently last Thursday Aug 16 to be exact. I was watching the market as AAPL was hitting $112’s and NYX was hitting $65’s. I was drawing my support lines because after the big red candle dropped a big white candle stood right next to it top to bottom and went right up with buyers looking for a golden opportunities. Since I’m still a student I really did not know which direction the market would go. On Friday stocks popped higher creating a doji star showing the market made up its mind. So now for the past almost 6 days the market has ran up with white candles breaking the downward trend since July 15th. I’m currently in AAPL JAN 200 CALLS up around 30% in my options +$3000 in 2 business days. I’m not going to sell at some crazy high number, but I am going to follow the major uptrend line until it is broken or bad news comes out, other wise I’m stick to my play. I’m very confident in Apple and until their next earnings call I’m going to trade it up to earnings or until I’m happy with my profit. I’d also love to be in SHLD and RIG Calls, but I’ve been taught to be in only one trade at a time even if there are other opportunities available. I need to stick to the rules and show some discipline or I’m never going to become a great trader.

Currently I’ve been looking at a trailor park to buy for $190,000. I’ve talked to many experts in this field and the price looks very good for what I’m getting which would be an 18 lot, 2.37 acre, with 18 park owned homes rented for $350-450 each, with all utilities established. It is around 20 minutes away from University of eastern Tennessee (Johnson City, TN). I’d really like to do the deal, but I want to get an outside property manager if I buy it. This is the advice I’ve gotten basically to get rid of any favoritism within the park. It would make some serious cashflow to my real estate portfolio. Between the 2 trailor parks I will eventually be receiving around a $50k net income a year more than my U.S. Coast Guard income so it would finally give me the choice of retirement at age 29. I still want to be a great trader, but it would give me choice even if I did not trade stock options.

I’m almost done with my 3 classes at HPU and will start another 5 online in the next two semesters. I want to double major by 2009 then do some pastry or music school or both when I get out. 2007 has been a very volatile year for my portfolio and my goal is to come out higher than last years or at least breaking even. Many of my penny stocks are worthless so I will have to sell them soon or I will be paying some serious taxes from gains I do not have anymore. Trends are looking good and the technicals are showing major buying right now so look out!

HOKU, new recent real estate, and juggling college classes

Currently in the world of the finance ninja he has purchased his second real estate deal. The property is an RV/Trailor park in Tennessee. He has also enrolled in 3 online college classes getting closer to finish his BA, and his stocks holdings have still not changed -$21,000.

Why not talk in the third person?

About 2 weeks ago I believe I purchased HOKU JAN 2008 17.5 CALL options. I should of actually put a GTC up 100%, but of course I didn’t. Currently I’m up around 50%. I feel the stock has much more room to grow and I bought tons of time so I could receive a larger return.
Although HOKU is doing well I only had $1000 to invest so due to my negative -$21000 balance on the stocks owned my networth is still very unhappy with my bad decisions during the new year of 2007 trading.

As for my real estate developments I already know what you are thinking. How can I be purchasing real estate with no money left and who would want to buy a trailor park? Well, I went to a real estate game club that plays Rich Dad Poor Dad’s Cashflow and they sell real estate university packages with a website and company that prepares real estate deals for you. I didn’t buy into it, but for a bran new person it might be a great idea. Personally buying real estate isn’t that hard expecially when you are paying all the closing costs for other people to do everything for you. I actually have been looking on ebay.com real estate listing and loopnet.com listings. They offer a site called investorconcierge.com where you have to pay $3000 just to see the listings. Honestly I think that is crazy because there are already millions of listings available you can do advanced searches on to find bargains to start a real estate portfolio. Also to have full access to the site and first picks on the properties that aren’t any better then any others you have to end up paying around $21,000. Now if you want to do that great, but I’d rather take $21,000 and buy a properties or properties with that money instead of waste it on a 40 CD audio/video course I’m never going to take the time to watch because I’m spending 100% of my time on the internet searching properties and talking to professionals about buying them. Setting up deals isn’t hard. If you can do math then you can figure out if the property you are looking at will make you money. Speaking of properties the RV/Trailor park I bought in Tennessee, a state I’ve only driven through going to California, I found off ebay.com. I usually try to avoid ebay, but most people selling properties there usually have no luck selling in town possibly because its too small with no buyers interested or there to flip a properties quickly for a resale for a quick gain, but the property might be still very underpriced for its value. This RV/trailor park came across as an awesome deal if all things work out of course. It has 1.5 acres of land off a main highway near town. It has 10 units with 6 currently being rented. The owner owned all 6 units which were included in the property of sale. Each unit rents for an average of $450/month. Doing some quick math that is $2700/month income. The owner was selling the full park for $90,000 and offered owner financing at 10% if he got the full $90,000 with a mortgage note of $700/month. The owner/landlord pays all utilities of water, sewage, electricity, and cable of around $600/month.
So the net profit off this property with only 6 units rented is $1400/month or $18,850/year because he rents them weekly not monthly so that is an extra 4 weeks of rent (before property management fee of 10% net will be $1100/month). This is more than a seamn or E-3 makes in the USCG or Navy. His auction was up for a little less than 15 days I believe more than enough time for other investors to catch their eye. I’m surprised no one bought it sooner then I did. I basically just did some research on the town, talked to the owner, and found a property manager to take over the property for me since I will be an absent owner. All the seller wanted was at least $10,000 down which was reasonable and my student loans I took out for college and investing since that is my main independent study came to use finally. Anyone can take out a $40,000 student loan from any major lender. It isn’t very hard and you can use them for many things as long as you are a full-time student. I plan to use the remaining amount for a 3rd property and the rest two buy 4 more trailors for the park. That’s right. Four more trailors only renting at $400/month each would increase my cashflow to $4300 with a net of over $2700/month. Most likely my utilities would go up some, but not likely to double. As for why would the owner sell it for so cheap? I asked him. His answer was reasonable. He said he bought it 3 years earlier and it was a dump and dead. He put 6 old cheap trailors on them and fixed them up and now looking to sell it to go onto another deal. I figure he must of not put more than $30,000 into the 6 trailors and the piece of land. So selling it for $90,000 3 years later is an awesome deal for him and myself since the park produces a very good income. I plan to pay off the remaining $80,000 I owe him on a note sooner to increase my cashflow another $700 which would make it around $2100 with only 6 units occupied. I’m pretty psyched about the deal and my property manager seems very sharp and willing to do a good job. The property manager will earn 10% of all rental income so he wants to help me get those other spots filled increasing his cashflow. I will collect my first rent next week around July 11th.
I plan to build it up, buy more trailors to rent, and pay off the note within 2-5 years.

I enrolled in 3 college online classes in HPU. I expect to get underway soon and will likely blog more occassionally because I have nothing better else to do stuck on the boat once my watch is finished. I study, write some music, and research stocks. This is a normal day underway after work. I like to sleep a lot too, but drills prevent sleep so you do everything else in between. I’m finally qualified so I’ll only have to train for drills which will open more time.

As for am I happy? Well that real estate deal even though it cost me $10,000 felt like buying a bran new car even though it is very new or pretty. I haven’t been very happy lately. Actually this girl I asked to dance and talked to at a concert is really bugging me. I really wish I’d gotten her phone number instead of giving her my fun looking business card! Well I guess I might learn next time, or not. I’m getting fat too. As for personal life fatness sucks. No ninja is quick or stealth-like getting fatter. I plan to exercise more, do more push-ups, and sit-ups, but I have yet to get started. Why? Hmm… a little bit of lazy-ness most likely… Underway you usually get fatter since all you do is eat. I plan to only eat cereal and soups. This should cut down and help me keep that extra sea fat off.

well aloha
-fn

DJIA down -546 pts at low! All I can say is “wow” and “shit!”

Yesterday, as you should be already so aware of, the China markets had a big correction which basically followed around the world. One of the main causes of the China correction was because asians were buying up stock like no tomorrow. Investing has become huge since the government is helping capitalism and turning asia into a major world power. Now, because of all this buying with no major pullbacks the stock market just went straight up and finally it threw up and just passed out. You should expect upcomming pullbacks. Yesterdays small crash was just the first to more to come including our own market. Analyst keep saying that 2007 will be a very volatile year. Fed Chairman Greenspan and Bernanke say the same too. I think if the banking system can fix fiscal policy then this volatile will be to the upside. The Dow’s low of -546 points yesterday was wowing. I expected buyers to buy up today and make a profit, but I expect by tomorrow even or the end of the week for the market to go further down.

You probably also should notice we are in warnings season when most companies warn for lower profits. With the major drop now in the Dow we are probably going to see stocks drop lower. If you were in any Call options you probably shitted yourself in the pants when China dropped following our market and Europe. I maybe didn’t shit my pants, but the reality check in my stock brokerage account sure did make me think I was about to have a panic attack. Yes, I did see it coming and everyone talks about how Asia was going to crash soon before going back up again, but I don’t think anyone can predict exactly when it will happen. When stocks are going up you don’t buy Puts. I suppose this is just something pricey I’m learning as a student of the market.

I’m going to read one of my commenters books who recommended Gamblers Ruin. It’s on one of my posts that I made a decent profit on. Many people that do not invest saying using the stock market to make money is gambling. I do not like questioning myself, but sometimes I think they are right when I definitely know I gambled a trade. I do not gamble in casinos. I think they are boring. I like playing poker, but I never play for money. I can not spend more then $50 in a casinos on games, although when I trade stocks sometimes I just get into this zone and I don’t even think about the stocks I’m trading, why I’m trading them, and if I should be trading. When this happens I make the worst decisions, trade too much or ALL of my money, and basically trade losing positions. It’s depressing. It’s hopeless. It’s being a totally moron of a gambler.

I really don’t know if its a dependent thing because when I trade I really wish I had someone like myself to over look me or just tell me I’m crazy. Sometimes the finance ninja gets caught in too much action. I’d say the ninja needs to just goto the bar, get a drink, and stay away from his stock trading laptop. My mentor even told me to not trade if you didn’t know where the market was going or if its just too hard to trade. Yes, trading on an easier trend would be more profitable and easy. I guess I just want to so badly get good at this and reach my ultimate goals that principles of consistent tradings get knocked out of my mind somehow.

To any traders out there like me I wish us both the best…to getting some type of help. =D

I am triumph! I am a king on valentines day! My first real adult disciplined trade.

Okay so I’m up $45,000 so far in my WTVI trade and the candlesticks are extremely large hitting BB’s and for the past couple of days its been straight upward movement. I’m expecting some type of pullback but I could be wrong. I thought to myself it doesn’t matter if I’m wrong and the stock would of made me a millionaire or if the stock drops to nothing and I regret not selling. So I thought to myself what is $45,000 worth to me? Well the biggest thing that came to my mind is that its one years worth of full-time income at my current rank in the USCG. With that said I immediately got out a dice and said “if it rolls even I’m holding it and if it rolls odd then I’m selling it”. It rolled a five and odd number. I was asking God subconsciously what should I do even though I knew I should sell it. I thought this is the first time I would put greed aside and conquer victory early instead of at the last minute. I feel like I’ve grown up and gone on to second grade with this trade. I ended up selling WTVI at $.047 and made +$38k within the 6 business days I held it. I feel great. I’m not going to regret if the the stock moves higher and higher. $38k to me is a years worth of income, can pay off my car, half of my last mortgage, or use it for a better opportunity down the road. I believe WTVI traded a bit lower, but I don’t even care. To tell you the truth I don’t even want to look up the stock symbol for at least a week so it won’t get to me.

I was actually down -$3200 bucks in an AAPL option trade gone bad which will all expire today worthless. I was told Feb through May are the hardest months to trade and its true. I think what I’m best at is technical analysis, but even that doesn’t work well during these choppy times. Since this trade worked out and I didn’t get over greedy on this 900% + trade I survive another day in the traders world. My account has reached close to my May 07′ goal of $48,000 on my way to $1 million.
I’m not worried about $1 million anymore. I feel so good about just getting out of this trade and paying off my new car possibly in less than 6 months of buying it for $24,000. That my friend is power. I’m putting aside around $10,000 just for taxes and I plan to leave only $2000 in my account to start trading again instead of a higher number just so I dont’ get greedy and buy really big positions that will make me lose quicker.

I feel triumph, victorious, the king of valentines day, and I feel I finally made a real good trade because I was very right about the charts, right buy in price, company hype and selling before actual news comes out, and most of all not being greedy and selling out early.

cheers to me!

My monthly saving should get easier with less trading…

Recently with my plan to see how far I can get gains as close to 100% a month on my initial investment of $2000 I should be able to save more money in my checking and savings accounts by not depositing more money into my trading account. So far my $2000 has grown to around $8000 in 3 months.

I was putting every extra couple hundred dollars into my OptionsXpress.com trading account to trade options with, but recently I put an end to that because I was just loosing it all. I feel if I give myself certain amount to trade and that is all I get for a long time psychologically maybe I will trade more disciplined and do more solid trades. So far it has worked and money has been building back up in my bank accounts.

So far I have $2700 saved up in my savings account and $1800 in my checking account. If I do not deposit any bi-weekly paychecks into my trading account I should be able to build an extra $1500 a month into my checking and $725 a month into my savings. A total of around $2225 a month or over $24,000 for 2007.

My car note still has $24,000 on it and I’d like to pay it off first and second my mortgage that I receive a rental income on which is still $58,800. My car note is 8.25% and my home 6.5% so paying off my car note first would be the economical choice to save money. My question is should I apply all my extra money to it monthly or pay it off at the end of the year in one lump sum? I guess psychologically if I see it being paid down each month I’ll keep paying it off while if I just leave a big fat sum of money I might start thinking “spending and buying” or even “this might be the big trade” and loose it all on something dumb materialistic things or a bad trade. So, paying off my car monthly with a larger amount probably would be the smarter choice.

If I trade less and focus on just those few I should have less losses and I’m taught it’s not about having big gains, but having very small losses. Recently I receive a big gain then big loss. If I could just stop the cycle of big loss it would really speed up my money goals in trading.

If anyone has any suggestions on what to pay off first my house or my car please comment.
My car has a 7 year note and my house a 30 year mortgage. I could finish paying off my house in 3 years and then have my car note left for 4 more years. Tell me what you think.

FOMC Meeting – The Fed Effect on the Stock Market

Well we are heading into the FOMC meeting where everyone gets nervous about things we already know, Feds not going to cut rates any lower, duh! Most likely when the Feds make a statement to the public annoucing they will not be cutting rates for the entire year at first the stock market will panic and then come to its senses because its already been a known fact that has been engrained into our daily stock market media news.

Current prices in Hawaii’s home market (the housing sector of the market) is tanking putting smiles on cheap investors like me. I wouldn’t call a 240 sqft studio with $400/condo fees for $136,000 cheap, but compared to just 2 months ago the sellers were asking $160,000 which is a big cut. Hundreds of homes and condos in Hawaii’s high priced selling market are finally coming down because buyers aren’t willing to pay those prices and they are truly not affordable making renting the smarter choice. Now I am actually looking to buy again getting approved for a new loan. If I do get qualified I will buy something in the middle of downtown Waikiki near the surfing beaches and shops for a prime rental unit later down the road. Even if my mortgage and condo fees together cost me $1500/month I can easily rent it for $3,000/month or $750/week to vacationers looking for a hot spot to stay in. Average hotel room is $150-300/night so for $100/night it is a bargain to own and use as a rental. Now I just need to get approved.

The Fed meeting will more likely increase rates so you really want to buy before this happens. If rates go down that is a good thing to lockin on a 30 year fixed mortgage. My current income is only around $44,000 plus if I do anything part-time might add another $6,000 a year. If I make any serious chunks of money in trading stock options I use that to pay off my mortgage or car first. I’m hoping to advance and get a nice $500 extra pay raise a month before 2008. Depending on how the Fed talks positive or negative on the current economy stocks could stay flat or turn sharply in either direction. This is basically the Fed’s effect on investors in the market making them panic or be confident about their portfolio. It really doesn’t matter for me I just want to know a fixed answer from them.

Another thing I’d like to mention in this blog with my condo buying info is that now because I did buy my first new car and have a $430/month payment it will hurt me most likely in borrowing power to buy a condo. The fact is I don’t want to get something that will gobble up my entire paycheck at the same time if I buy something else to rent out I will still have that new mortgage plus the cost I will have to pay to rent my own place in hawaii which will most likely come out to the same or more. I’d really like to own a condo in Hawaii. I blog about if I able to get one or not with the lowered prices soon. If I get a second job that would be an extra stream of income to pay off my car which I want to do first to increase my cashflow again.

Currently the market isn’t doing much but recently OIL energy stocks are really showing a change in direction and I’m playing PUTS on OIH. I basically need it to hit around $129 to call me out to make 25%. I also think NUE, AAPL, and CMG are about to head higher.

Apple Computer iPhone, AAPL option trade, Condo Investments

Apple Computer’s announcement of its new iPhone and iTv was no surprise as the stock dropped 3 pts right before CEO Steve Jobs came out with the iPhone around noon PST. As soon as it was shown investors bought in confidence AAPL stock and it rose up 8%. The following day buyers that did not buy the first day tried to get in on the action raising the price another 5%. This is when I had the decision to sell my AAPL JAN 07 100 Calls and get out +$2000 instead of being negative -$4300 just 3 days before!

I’m pretty impressed by the sleek look of the new iPhone and I’m even considering changing my Cingular RAZR for it if it works easy. I keep my cell phone on me all the time and have a nano iPod and I actually really want my iPod in my phone. I think the iPhone idea is brilliant and will be a profit machine for growth for 2007 AAPL balance sheet. The only shortfall to the iPhone is its small harddrive for space. Until a new iPhone comes out I might not get it because its small 4/8gig harddrive is just not enough for all my songs, video podcasts, and data to store on it. This could be the new wave of ultra-small computer devices. Yes, Palm has been out for a while but it was more of a mini-desk organizer then a phone or music player. I owned the sweet Palm phone (silver) back in 2000 for $400 so buying a $500 iPhone really isn’t that big of deal. I do not find price a problem here. Just harddrive space at the moment I think will upset new iPhone users like myself.

As for the stock play I did on AAPL this trade definitely wasn’t the worst trade I’ve ever done because my GRMN trade being +300% and not selling before earnings Nov 15, 2006 is definitely the worst trade. This will have to be my 2nd worst trade of 2006 just because the smart thing would of been to buy these option contracts just days before the Mac Expo. I should of sold out at a $500 loss earlier and bought back in at $.20-30 per contract and bought over 100 and made such a bigger % and income from the trade probably half of my USCG salary in less that 3 days! I am journaling this for next time. What I did do which is good trading but isn’t bad either since it helped me get out profitable was I bought in increments when the stock price went down so my ending cost basis for my options was $1.22 per option and I sold my options at $2.05 giving me almost a 100% profit for around 35 trading days or about a month. Again, bad trading. I’m sure their are some investors that are reading this that are thinking this is a fantastic gain in such a short time, but believe me this is really bad trading, although I sold before earnings and didn’t hold my options being greedy. Because of this reason I have already improved 100% personally and more disciplined.

I saw AAPL starting to hit a ceiling today and thought to myself I’d rather have money in the bank right now then be wrong about tomorrow. I sold before the option pricing starting to go down with the close of the day. In after hours Cisco came out with a big “I’m sueing Apple over iPhone name patent”. So my thinking of I could be wrong tomorrow was a smart move. AAPL stock is pretty bullish right now so hitting $110 or even $120 by earnings is possible, but its also possible it could fall hard right after earnings. For this reason, today, I am happy in Hawaii.

My next trade will most likely be FXI Puts with its strong new trend downward all charts are showing a downtrend and lots of profit taking is happening. I don’t care to be right I just want to perform in my trading for 2007. I’d rather be wrong and sell out early and keep my money.

As for my Mexico property investment the new terms are better on a condo I looked at while I was there even closer to the beach I am in the process of putting a purchase contract on for $560,000 Pesos or converted to USD $52,000 and I’d have to put around $5000 into renovations then rent it for 4-6 months a year to break even. This condo is less expensive than the smaller home I would have liked to buy, but now I am thinking this is the better rental income investment over time.

Another idea I had was build a decent size log cabin on some land in Virginia and rent it out as a hunters lodge during hunting season, ski resort people looking for a private place, weekend retreaters, and churches for retreats. Right now I don’t feel I could really do it well without help and none of my family is really interested at the moment so I will make this a project for later possibly.

As for beginning the new year of 2007 I’m pretty happy being sold out of all my options and feel I have a fresh start of trading wiser and more disciplined this year. For one thing I’m going to stop depositing money into my stock account to trade. I’m just going to build up my savings, something I’ve never really done before. I’ll probably use that money to pay off my car loan because that would free up $400 a month I could keep saving and not worry about that loan payment by the time I’m out of the USCG.

I hope this was helpful to any young or old investors out there. Lesson today is not to be greedy and sell when you are happy.

An article I liked on Apple Computer’s hype and glory for the secretcy of it’s products was done great by a blogger from the Utility Belt. Also here is an article on the growing middle class of Mexico starting a mortgage boom that will help build Mexico’s growing economy by BusinessWeek Online. A good article on the iPhone and how it will definitely change the computer-phone industry by theStreet.com did a great job here.

#36 on Top Growing blogs on WordPress.com!

I’m proud to say my financial blog has made it to #36 on Dec 31, 2006 list for growing blogs on WordPress.com
Lets make it a goal to make it half way up one year from now! I promise to my readers to keep motivating you with my good and bad trades, what I did wrong and what I need to do right to correct them, and keep putting aside money from my paycheck to increase my networth.

Cheers, Paul

New 2007 year begins with negative news from Fed, also Apple’s big week, sell-off on Asia ETF’s?

First off the Santa Claus rally did happen ending 2006, but Fed news for 2007 this week made investors sell. Investors were not to happy hearing rates will not be cut and possibly rates to go up later in the year. I think this should be expected if the Feds are trying to balance the sheet with inflation. We are way behind on inflation. Although if interest rates rise higher and inflation goes higher that is a signal for a bearish looking market to come. The recent oil drop to $55 BBL and Steel stocks way below their 52 week lows are starting to hit support. Take OIH Oil Trust @ $129 and NUE Steel @ $54. If you expecially look at NUE charts it shows a correction is starting to take place with a reversal hammer to go up with a long stick down showing the stock being bought up in the past week. Also my Puts. NUE hasn’t gone down past $54. It went from $60 to $58 to $54 and again I was up 25% but because I didn’t sell out when I was up the option is down because it is getting near expiration date with the stock supporting at $54. I took my first loss today because if I am going to start the New Year off right then I need to sell my options not doing anything for me, which brings me to Apple. Apple’s Mac week is next week which should bring up its stock price with good news from it because it seems Apple has really gone out of its way to make a “bang” this year for customers. Even its website keeps its new products mysterious and creates excitement for Apple users. Apple earnings is January 17, 2007. Profits on iTunes downloads and new iPods are predicted to ramp up sales and show a surprise. Right now my option is down -150% and I need to bring it up to at least to break even at $1.42. The option price even with the current good news raising the price to $86 has done little for raising the price back up.

One big lesson I’ve learned with options and buying out of the money in the same month of expiration is that once you are up 10-30% in the option when you are right the first 2-3 days get out immediately with your profits and don’t wait for the stock price to move further. I was correct in my AAPL, NUE, and AMAT options but because I did not sell them immediately after I was right I’ve lost on all 3 of them. As Cramer says you haven’t made any money until you sell and it’s in your bank account.

Recently China’s ETF purely liquid fund FXI has vomated out 10% of profits. FXI hit a high of $118 and just recently in the past 2 days fallen over -13pts. If you look at the charts the stock is one huge line up from skyrocketing up with buying. Even I feel some selling is going to go on. I still think FXI is going higher, but the stock price could come down past the $90’s for now. It’s predicted that if China’s markets have a sell-off in the new year that for the next couple of months the stock will go to half its current stock price. If that was true then that would be a very profitable PUT option play on FXI. I am going to examine that charts on it to see if the sell-off reversal is going to hold and more profit taking will happen. Currently FXI is up 80% and falling. Jim Cramer says in his internet articles that since Asia’s companies are so liquid that owning the ETF fund makes it even more risky unless you can wait for it to come down and buy back into it. I even have a friend who bought FXI around $93. I asked him if he sold it when it his $112 or even $118 he said he didn’t. I would of sold for that type of profit. Now he does own the stock. I’d never buy the stock I’d buy the Call options which would of been worth a couple thousand right now even with the fall. But now with a new trend it might even be easier to play it down then to play it up.
As for the new year my first port call was Manzanillo, Mexico. It was beautiful although the surf wasn’t going off in town I heard there was surf farther north or south. I checked out 5 different properties for sale and really liked this smaller 1bed/1bath with huge lot overlooking the Santiago bay. It was actually a really nice casa that just need a bit of upgrades to make it a really great rental, but I am currently finding it very hard to get a loan that makes it profitable to own it and rent it out. I first thought mortgage of $600-700 would be okay because I’d have to get out a second loan with a mortgage of $200 around to make upgrades like new electrical, upgrade kitchen, and furniture to make it a turn-key rental that is just 3 blocks to the beach and 5 minutes from downtown shops. So now with the only loan I can receive at 20 years at 9.9% mexican rate which would be over $700 month not including all my taxes, insurances, and bank trust fees a year + my second loan over $200/m for cosmetic upgrades to make somebody want to rent it I am finding it might not be the best investment right now. Even if I could rent out easily for $1000 a month for a solid 6 months out of the year that still leaves me with $900 X 6 month = $5,400 out of my pocket a year to pay for something that isn’t rented possibly or even possibly for 1 whole year would be over $10,000 which could be saved in an account. Long-term if the property rises 10% a year because the town is growing and many projects are being built their my return on investmetn could be 30% in 3 years by the time I get out of the military I could have $30,000 in equity built up if I sold it and could cash out. I’d really like to talk to a professional about this, but don’t know who to talk to because most people do not understand investments like this. I can get this loan, but I just don’t want to struggle with payments since in 3 years I am out of the military I’d be up to $2,000 a month in mortgage and car loan bills! This is not good. It would only be good if I could sell my property for a good size gain or pay off my first mortgage and my car loan only leaving one big bill left. If I am able to rent it a solid 6 months out of the year for possible more that would help on my payments, but I’d like to live in something I own in the end.

So I still have more port calls to make. I might find a better deal somewhere else. It would just be awesome to live so close to the beach where great surfing waves are. I just want to make wiser decisions because I want to be either debt free or have great investments in 3 years. If I make wrong decisions it could bring on the pain and put me again behind schedule in retiring early and young.

An option traders New Years resolutions…

I usually don’t make new years resolutions and plans because I don’t like making statements I don’t follow through with, but I need to this year. As I stood on the fantail of our cutter in Manzanillo, Mexico watching fireworks around the entire bay (amazing) I wished to become a better trader this year. I want it so bad. I also need to stop touching the money I collect on my rental unit and let it sit in my savings account to build up an emergency fund. I told God to make me a better stock trader, please, and thanked God for the beautiful fireworks and magical happy feeling I felt all around me as the new year began with all the excitement around me. Here are my specific resolution goals for 2007…

To be a better options trader in 2007 I will:
1. I have to do 25 practice trades or more a week.
2. I can only trade one option at a time.
3. If my option goes down on the second day I must sell sell sell and live another day.
4. If I am up 50% on an option in less than 2 trading days then sell it.
5. I need to finish at least one economics or stock market book a month, and work at finishing a book every 2 weeks.

To grow Assets I will:
1. Buy a second property to rent out either in my home state of Virginia or at a tourist location in another country to use as a vacation home once I’m out of the military. I can also use this property for more tax write offs to get back a bigger return or less taxes.
2. Leave alone $725 rent collected and deposited into Savings Account to build as an emergency fund. If I don’t touch it for 2007 I will have accumulated $8,700 for 12 months.
3. Any extra money I don’t use from my paycheck will go towards my second properties mortgage, trading account, and second savings account.
4. When inport find a second part-time job to pay off my new car loan to decrease debt.

To become a better person I will:
1. Try to smile more? To breakout of this stressful serious syndrome I’m always in.
2. Create and stick to some routine exercise besides surfing and tennis.
3. Volunteer for at least a few days out of the month for an organization I could help.
4. Setup a donate savings account. Find someone or group I can donate to.

Good article on planning success and money management

On Yahoo! Finance I read this article on young people comparing their success to others. As you read through the finance article it talks about planning your success through various steps. Correct money management can make you feel like you are rich or have plenty. One piece of information I liked that it said was open multiple savings accounts to electronically deposit savings into each to track your goals for what you want – down payment on a new home, vacation, christmas presents, new car, long-term savings, emergency savings, ex.

It is never too late to save. Even my parents in their late 50’s started saving when I was young and we were always pretty broke, but just had enough to pay for everything living on small incomes.

It is easy to feel rich if you live under your income and you can enjoy simple things. If you don’t have to worry about money then you are rich. For me rich is having enough money to live on without having to work a full-time work week. So if I am to successfully trade in 1 day that can earn me a week’s income I feel pretty rich. Besides money just having friends call me to go out and play tennis, see a movie, or go fishing and having the free time to do it makes me feel pretty rich. Everyone has their own definition of rich. For most it’s having expensive luxury cars, a big house, and a big bank account. The millionaire is considered rich. You can be the poorest lowest incomed individual, but if you are really happy and you love your job (which is rare with most people working) then you are rich.

To help you on your planning to have success in money management:
1. Open seperate savings accounts and have portions of your check deposited into each on for each goal you want, so once the goal is reached you have the choice to enjoy that success.

2. If you want to excel your planning goals I suggest taking on a second part-time job if you don’t already have one. Use that extra money to put towards your goals such as paying off your house or saving for a down payment for a house.

3. If you are struggling with your finances and can’t seem to have any success with money management then you are probably spending too much or have to many luxuries. Consider turning off the cable Tv, turn off AC, use less Heat and where a coat in the house, and going out less so you can’t spend money. – Believe me I have the same problem. When my friends ask me to go out shopping or to buy food I end up spending more then I want to. It is so hard for me to just say “no” to myself. Saving more of your income isn’t easy. You really need enforcements and family to keep you on track. If you have no one to help keep you motivated then put more money into a deposit into a savings account so the money in your checking account is less so you have less to grab to spend. Also make sure you have NO ACCESS to your savings account so you can’t immediately grab cash from the savings account. Cut up your savings account checkcard. It will be the best decision you ever want to make if you are a predictable big consumer. This way you can’t touch that saved cash.

4. Eat less. Eat cheaper meals. It’s proven somewhere in some book that all you need to eat is as much that can fit into your hand. So in that theory we could all be eating less. Try to make more meals at home that are cheap. Ideas – the store brand mac and cheese. Those for 1 box serves around 4 people and costs around $.90 plus 1 cup of milk. The Hamburger Helper meals run around $2 plus 1 lb meat which costs around $6 is still a cheap meal that can serve around 4 people.

5. Try to drive less if you own a gas guzzling car. If you can carpool do it. Gas has been lowered recently, but you can still save. If you live close to work try to walk or ride a bike a couple of days out of the week. You can get some exercise your body needs and enjoy the nature or industrial city view.

6. I’d say lastly when managing your money have a big dream goal in mind always. A big success picture you can dream about to keep your mind thinking of saving daily. I think about making and saving my money every day. It is always on my mind because I really want to meet my goals even though I screw up big sometimes and spend more money I just stuff I really don’t need and end up not using enough to have make it worth it buying the items. Really make sure you need it before you buy it. Can you wait a week? See how you feel then. Impulse buying gets to the best of us. If you have a big goal then you are going to have to start making big commitments to meet your goals. A lot of my friends think I’m cheap and I don’t like to have any fun. The fact is I am having fun saving my money and yes I might miss out on some money costing activities now but I feel when I am in my 30’s and possibly have the choice to do whatever I want and not have to work what I did in my 20’s will have paid off and I will be compared to be ultra-successful to my friends that live more crazy, money spending, luxury life styles now.

Market moves down – Apple Computer (AAPL) and McDonald’s (MCD) stock reviews

About a week or more ago I predicted the market to move further down with profit takings and technical data indicators.  Although I played Calls on AAPL going up because so many upgrades and hype rumors helping boost its shares, Puts would of been the more profitable and the right choice.  I suppose finally the market gave AAPL a hang over and its down to $86.  I looked at the Daily year chart and AAPL is still riding up it’s trend line from July 2006 and it hasn’t broke yet.  Also the simple moving averages are still in line with the prive movement.  It still can move down before hitting the trend line breaking it.  Now I’m not saying it won’t move to $100.  I think it is very likely with increasing sales on everything it does (music downloading, iPods, and fresh improving computer sales) I’m just right now it looks down.  I’d wait to see a reversal pop up or big white candle buying sign saying “BUY ME HERE”.  Where?  I currently am in a loosing position and I should of sold out 4 days ago, duh!  But my personality and stock selling maturity appearantly still has not improved.  I’ve been breaking too many rules lately that I’ve been taught.  My oldest sister even tells me she can’t help me or do team work if I don’t follow the rules exactly as they are written.  What am I suppose to do being so dang risky!  I shoot big guns in the market and yes they shoot back even bigger and hit me harder!  A very good bullet proof vest would be wearing the rules on my chest.  If I am going to break the rules then I’m going to buy call/put options with tons of time value so I can breath easier through volatile price changes because -$1-3 pts on a stock is a big percentage change when owning a stock option.  I think not breaking the rules would be the right choice again.  The real question is how much money from my “could be big savings bank account” am I will to give up to trade in the stock market and receive a Harvard college price education?  For me my stock market education is everything, but I’m starting to think I should be doing more “homework practice plays with no money” then trading all my real hard earned money. 

I’ve currently decided to buy McDonald’s MCD at the $43 stock price for June 2007 55 CALLS @ .10.  My order hasn’t been processed yet so it might not be sold to me but I shall wait or buy more @ $.15 later if the stock keeps its price.  McDonalds has been doing very keeping their stores clean, modernizing them, offering healthier foods, keeping an excellent $1 menu, and increasing same-store sales with positive earnings news and upgrades on the corporate company.  It also has a strong upward trend since July 2003.  I can also note MCD has been pretty flat since October 2006 and only recently popped in December 2006 on upgrades and same-stores sales increasing.

Although MCD is a fast-food giant and probably not the healthiest for burgers still customers love its food, prices, and fast service.

I will also note about myself that I am now presently underway crusing in the Pacific ocean with my USCG cutter for around 3 months.  My internet is slow, but I will still update my blog, networthiq, and current trade holdings.  I am still optimistic on making 1 solid 100% trade a month to reach my goal of $100k to $1 Million.  I just need to learn how to stop trading after I reach my monthly goal so I don’t loose any money I make in profits.  I find getting into stocks options are easy.  The hard part is selling off the greed taking some profit and getting out quicker.

I will be doing more practice trades during this time since I can not trade on the boat due to the new hours I work and slow connection.  If I can add new funds to my portfolio I will to save money out of my pay check.  I’m hoping to save $5,000 out of my pay checks by March 2007.  I think it would be best to put towards paying off my car.  Best*

I will also be looking for a new place to live.  I hope I find a perfect match in my budget to keep saving money on housing costs to put it towards my stock market education and goals.

-P

How to become a billionaire in 20 months by trading options, the power of compounding your profits.

UPDATE – Revised my rules, click here to goto new updated blog on this challenge!

HOW TO BECOME A BILLIONAIRE IN 20 MONTHS BY TRADING STOCK OPTIONS:

FIRST THE RULES: 

RULE #1 – YOUR MONTHLY CASH HAS TO EARN 100% COMPOUNDED FOR 20 MONTHS
RULE #2 – YOUR STOCK OPTION PRICE EQUAL OR LESS THAN $2  BUT NOT LESS THAN $.50
RULE #3 – YOUR STOCK PRICE HAS TO BE VOLATILE ENOUGH TO MOVE $2-3 IN 1 DAY.
RULE #4 – YOU CAN ONLY DO 1 TRADE A MONTH FOR THE 20 MONTHS AND YOUR 1 TRADE HAS TO MAKE 100% (TOTAL OF 20 TRADES).
RULE #5 – YOU CAN NOT ADD MONEY TO YOUR BEGINNING CASH BALANCE YOU ARE TRADING TO EARN 100% ON.
RULE #6 – YOU CAN NOT BE IN AN OPTION TRADE MORE THAN 4 BUSINESS TRADING DAYS.
RULE #7 – IF YOU ARE WRONG AND YOUR OPTION TRADE TURNS NEGATIVE AND WITHIN THE 4 DAYS YOU ARE INCORRECT ABOUT WHICH    DIRECTION THE TRADE WENT THEN YOU HAVE TO START BACK AT MONTH 1 AGAIN.
RULE #8 – YOU CAN TRADE CALL OR PUT OPTIONS AS LONG AS 100% IS MADE.
RULE #9 – EXTRACT MONEY TO PAY TAXES AFTER MONTH 10.
RULE #10 - IF YOU MAKE IT TO MONTH 20 YOU ARE AN EXTRAORDINARY PERSON WITH SUPERIOR DISCIPLINE AND TALENT.  I MIGHT ALSO INCLUDE YOU ARE 100% CRAZY.

IF YOU HAVE BETTER RULES PLEASE COMMENT THEM IN BELOW AND LET ME KNOW IF YOU ARE UP FOR THE CHALLENGE OR ONE SIMULAR.

I’M STARTING DEC 2006, LETS SEE HOW FAR I PERSONALLY GET!

DEC 06 MONTH 1: $3,000
JAN 07 MONTH 2:  $6,000
FEB 07 MONTH 3: $12,000
MAR 07 MONTH 4: $24,000
APR 07 MONTH 5: $48,000
MAY 07 MONTH 6: $96,000
JUN 07 MONTH 7: $192,000
JUL 07 MONTH 8: $384,000
AUG 07 MONTH 9: $768,000
SEP 07 MONTH 10: $1,536,000
OCT 07 MONTH 11: $3,072,000
NOV 07 MONTH 12: $6,144,000
DEC 07 MONTH 13: $12,288,000
JAN 08 MONTH 14: $24,576,000
FEB 08 MONTH 15: $49,152,000
MAR 08 MONTH 16: $98,304,000
APR 08 MONTH 17: $196,608,000
MAY 08 MONTH 18: $393,216,000
JUN 08 MONTH 19: $786,432,000
JUL 08 MONTH 20: $1,572,864,000

CONTINUE FOR 11 MORE MONTHS TO BECOME A TRILLIONAIRE

DO YOU HAVE WHAT IT TAKES?  DO YOU LIKE THE CHALLENGE?

Here are some positive articles on becoming a millionaire and then billionaire:

http://financeninja.wordpress.com/2007/01/14/how-to-become-a-millionaire-in-10-months-updated/

http://www.themoneytimes.com/articles/20070721/how_to_become_a_billionaire-id-106849.html

http://www.fool.com/investing/small-cap/2007/07/21/how-to-become-a-billionaire.aspx

http://www.businesslyceum.com/BAM.html?id=SarahSilva

http://ezinearticles.com/?The-Easiest-Way-To-Become-a-Billionaire&id=82914

http://search.yahoo.com/search?p=how+to+become+a+billionaire&fr=yfp-t-501&toggle=1&cop=mss&ei=UTF-8

Thank you Dell Computer for beating analyst expectations.

Again, thank you Dell Computer.  When Dell beat earnings expectations the entire market after hours lifted up by next morning it opened some retail and tech stocks much higher.  I was focused on Sears Holding Co. (SHLD) after it tanked being such a good company making profitable earnings.  SHLD was creeping up since earnings but no sudden big movement but still upwards positive on the stock price.  I still thought buying Call options at the $172 stock price was a good level to get into.  So yesterday I bought the Dec 06 180 Calls at 1.50 planning on waiting for 2-3 days movement to hit my sell point at 4.00.  I’m excited to say this morning Dell earnings helped smack SHLD’s butt and made it up all the way to $180 selling me out around $179 at 4.00 profiting myself +$11,000. 

Now what to do?  Pay off my second note on my home which is $14,900.  I told myself the first time I get my account over $15,000 again I would take that money and pay off a home note and trade the remaining amount of money back up to that level again.  I believe making $700 to $40,000 in 4 months even if I am using profits as long as I make $40,000 that is my goal.  I might have to be extending my $40,000 goal because I can not trade while underway on my ship which I will be soon for around 2-3 months.  That would make it more like 7 months, still exciting and awesome if I can make my goal which I will because I know I can.

My account now is around $17,000 + all my bad trades or should I say non-moving stocks that haven’t done anything for me.  I told myself with my remaining amount of money I am going to trade expensive high quality stocks like SHLD, GOOG, NYX, FXI, MA, NUE, and AAPL that move consistantly and trade a like to catch trend movements.  I’ve built $2000 into $20,000 before when I knew nothing about stock options and traded penny stocks and dollar stocks which I recommend not doing because its very difficult. 

I trade risky so my if I do profit I profit much higher.  My SHLD trade lasted one day and made 175% which to the average investors that knows little about traded but doing understand what a return is would be blown away.  I’m blown away, but not that much since I’ve made much higher returns just recently and over the years.  I want to get to a point where I have a good deal of money and my trading activity becomes more stable with less risk.  Right now being young I know I can take the risk so I am trading like a wild gun.

At first I thought it was a brilliant money saving idea, now maybe not…

Okay so something I didn’t mention about one of my roommates.  Well around late August I put up 2 Ads on craigslist.org and myspace.com for a person to roommate with me.  I was offering to split my room, my bed, my closet, and my desk for $250/Month and $300/Month if I was absent on patrol with the USCG.

At first what seemed like a brilliant money saving idea slowly turned into one of my worst nightmares as a dude like me could ever get himself into.  I received some replies mostly SPAM from europe students then 2 real ones.  Out of the two the current person seemed most likely to get along with.  I shall keep the female unnamed.  She seemed pretty real and fun.  I talked to her on the phone twice.  I mean this was pretty weird to begin with.  A chick and a dude that have never met sleeping on the same bed together, but I was like I don’t care because that’s an extra $250 I can save which is almost 10% of my take home pay after paying Uncle Sam.  I’m sure you are thinking by now this dude is going to get into deep shit, which I totally did. 

So I pick her up at the airport because she came from the northern east coast and wanted to vacation in Hawaii and maybe get a job and stay.  I was upfront with her about how the conditions were going to be.  My place isn’t pimpin as the call it these days.  To me I feel its not a bad place, but if I would knew more about this chick I definitely would of not of accepted her as my roommate.  So back to the airport scene.  This was funny.  I’m there on time and we meet.  A little strange but very new you could say.  I already get the vibe off her she thinks I’m kind of creepy, but this is okay because I’d say that is natural with most women I start to have a conversation with.  When all I can do is talk about money and stocks it kind of bores women resulting in singleness.

I take her on a drive and we walk in Waikiki to work on getting to know each other before I take her back to the 3rd world country crib because that is what it is.  =)  She seems nice, very smilely, attractive, well dressed, and a bit not so smart.  I’m sure she is smart, but if you talked to her she would come off as a big ditz.  I’m like whatever as long as she has the money I can invest in more stock options. 

We get back to my place and she sleeps on her side and I sleep on my side of the bed.  A big interesting moment I’d say for a big geek like me that hasn’t been with a woman for a long time and I’m not talking months.    I guess I really did not think this part through in my big brilliant idea.  All I think about is saving money, trading stocks, work, and going surfing; dating women and relationships don’t play a big part in my daily life since I’ve been so goal oriented.  I figured sharing it with a female keeping it platonic would be pretty heterosexual thing to do.  If I had a bunk bed or two seperate beds then it would of not mattered since I sleep in a berthing area with 16 guys on the ship.   I didn’t think of any sexual interests in my plan.  In short, I liked her at least very attractively.  I believe I already knew the first day I was a moron to get a hot chick to move in with me.  From her pictures she didn’t seem very attractive.  Being attractive wasn’t the main issue to get a roommate.  Just someone that could fit on the bed with me and still have space between us and staying clean would be nice.  In person I was sexually desiring her (big problem #1).  I didn’t want to buy her anything or evolve around her, but I knew we weren’t going to be roommates forever.  So I thought why not make a move.  I did make a move and well I was wrong about that.  Things got weird and I was flushed down the toilet.  I accepted my actions taken.  I figured if I never tried to make a move and she started dating other guys then I’d regret it the rest of my life.  I’m very shy, but I felt I got to get to know her enough to take the fall if it happened.  I’m glad I tried.  My confidence level went up even though I am still kissless and dateless, but hey I got my bro’s right?  Right (sigh).   :(   Trust is something later that did not hold through…

So it has been almost 2 months now.  She is moving out.  For the first month I believe it was chill.  All the roomies would hangout with my friends and we all got along pretty fine.  There were some episodes of wackness, but we made through them.  Recently she has gone a-wall herself because my drunken friends leaked out bad rumor info and it got to her and lets just say shes pissed and thinks I’m some big creepy punk now.  I took her bitching and quietly took it with no fighting back or arguing.  I’m a cool smooth dude and I will obtain my status.  I let her say what she wanted to say and said, “Okay”.  During this time period I have to admit our relationship as friends or should I say aquiantances was getting sour and it was opening my eyes more that she was just a bitchy complainy 12 year old girl (shes 20) and that she sounded fake and is just a big boring fake.  I am not putting this sterotype on women, just her.  None of my friends liked her and my friends are welcoming people so that kind of opened my infactuated eyes a bit.  So now I’m like yeah she might have a hot bod, but shes just a big bore.  Lets just say she loves to complain and call people “stupid” very much so.  It is very annoying, mean, and stupid on her own part.  She might think its cute, but believe me its not.  I’m glad I can see through her negative intentions.

I’ve met some other girls during that time also and it made me realize how much she isn’t worth taking out to dinner.  Theres women I meet and really want to take them out, they are just usually already in relationships.  For the most part I believe if you are a great gal and work and getting men to love you then you are going to have a man.  Most women I meet that are single are single for a reason.  My reason for being single is because I want to be single.  It’s cheaper and being with a woman makes me spend much more money.  Hey if you meet a girl that likes free outdoor activities don’t loose her!  It’s rare.

So now 2 months later into my big plan I will soon go on patrol and my room is empty.  What?  What do you think I’m going to do?  Oh you know it!  Repost an another Ad to sublet my room for a couple of months until I come back for around $350.  Every bit of money helps I think.  As long as I don’t have to personally room with anybody I’m still going to do it. 

I also plan on moving out and getting my own studio or 1 bedroom place with maybe 1 roommate that lives exactly like I do if I can find one.  Or room with people that have professional 7am-4pm type jobs, and goto sleep during the weekdays by 11pm.  If you want to party during the weekends fine; just let me wake up with energy during the weekdays.  I admit to you and everyone I like my sleep!  I dream a lot and its fascinating being in your own dream world.

So I learned my lesson.  If you need the money and you are going to split your bed with a female #1 make sure shes ugly (no attractiveness), #2 sign a contract on the room to keep the person from moving, #3 make sure the person is smart and not so barbiesh.

Well guys and gals.  good night. -P

Gambling on Garmin’s earnings – An eye opener

Today before the market opened Garmin Co. (GRMN) released its earnings.  As I woke up, went to work, got dressed, and dashed to a computer to check GRMN stock quote my face turned pale.  My heart literally stopped and I sat dead stairing at the computer screen.  GRMN @ $45 down -7pts.   Talk about a great way to start off your day at work.   Looked at my portfolio down -$10,000.  All I could think was “fuck shit fuck shit” repeatedly in my head over and over.  There wasn’t anything I could do about it now so I went to get some milk since I knew I couldn’t hold down a full breakfast.

Previously on Thursday Oct 26 I had the option to get out in GRMN up +$6000 profitably and I didn’t because I really believed earnings were going to pop up positively like all the other tech companies.  Everybody has been putting out better than expected earnings why wouldn’t GRMN?  My mother even told me to sell.  Up 300% and I think anyone else would too.  I didn’t consider myself being greedy.  I wanted to follow the profit trail because my trend line wasn’t broken and there was no negative news in its sector.  Even on Tuesday Oct 31 I had the options to get up 100% with +$2500, still I didn’t.  I feel now if anyone is actually reading this real live stock options trading journal that the writer and traders of this journal must be totally psycho not to sell.   I think I am.  What is wrong with me?  I broke two major rules I learned.  1.  If you are up 100% get out and 2. Never go through earnings unless you are only using a small portion of your profits.  I really broke both big time.  I feel I received my punishment 10 fold.  My account is now low again.  I built it really fast and I also lose just as much really fast the way I trade.  I really need to learn how to change my habits.

 I just recently attended a Stephen Covey workshop on “The Seven Habits of Highly Successful People”.  Although I do not consider myself a highly successful person I really do need to change my bad habits or should I say gambling habits when trading stocks. I only gamble stocks when I trade with 100% of my money. I do not feel buying and selling options is gambling most people think it is, it only is when you make it a gamble.

When you follow the rules you aren’t gambling quoted by my mother.  She is right.  Very right.  If I had followed two simple rules my account would of been doubled right now and I could sit back and not feel horrible about myself loosing all that hard earning money it took me to do in 2 months.   So from $700 to around $17,000 down to $13,000 now at $3,000.  Shit.  I really don’t have much emotional ties to it.  Yes I had to work and put my money into the account, but its just money to me.  I don’t spend it all I want to do is multiply it.  Shit happens, expecially when you break big rules being a gun slinger dieing young.

Don’t give up on me.  I’m coming back.  I plan to not go through earnings a second time with any of my options unless its with a very small portion of the profits I received.

Interesting news article about our government going into debt

AP
GAO Chief Warns Economic Disaster Looms
Saturday October 28, 9:32 pm ET
By Matt Crenson, AP National Writer

GAO Chief Takes to Road, Warns Economic Disaster Looms Even As Many Candidates Avoid Issue

CNN Money online news story about a family saving money.

I came across this news article about a young family saving money after college and thought it would be really useful and interesting.  You might even get some insight in your own home to help you become a millionaire.

CNN Money Online Article (Click Here) - Millionaires in the Making: The Johnsons

CNN Money Article on saving money for retirement.

I received this news article from a co-worker of mine and thought it was very significant because its content lines right up with my opinions on consumer spending and saving.

Basically a person with a smaller income can still save more then a person with a larger income just because they spend less and save more.  Read it for yoursefl.

CNNMoney.com News:  “What works: Your worst enemy…overspending”

By: Penelope Wang

http://money.cnn.com/2006/09/07/pf/retirement/retire0610_whatworks_hartmann.moneymag/index.htm

In my own life I can see this with my friends earning more then me, but they want to spend and buy a sports car, new furniture, and have their own place instead of sharing.  Just by owning your car with no payment you are saving $100-500, sharing as a roommate instead of having your own place saves your $300-1000, and buying or getting used furniture could save your hundreds if not a couple thousands.  I know its personal choice, luxury, and enjoyment.  Can’t you have just a good time driving a regular car, or sitting on a used piece of furniture.  Having a bran new furniture set doesn’t make it come alive and talk to you does it?  I don’t think so.  Sure, comfort, you want it but you still can have it being more on a budget and finding a reasonable simular piece of furniture cheaper would help you save in the long run.  As with expensive cars comes higher insurance just another thing to think about when spending your paycheck.

In the article stated above they are earning a sweet income, but if with a $20,000 to $40,000 yearly income you can save just as much.

 I factor variables like (for males and females):

1. Do you have a boyfriend, girlfriend, or are you married?

2. Do you own or do you rent or which is cheaper?

3. Do you own your car, leased, or have a loan on it?  What’s the insurance?

4. Do you eat out a lot, binge drinkers, or like to go out a lot on the weekends?

5. Do you play sports?  Because most sports are free.

6. Do you have credit cards and how much is on them?

The above questions can help you budget your money better and plan for retirement.  Yes, people change, you get married, you have babies, and now you have a hospital bills because you don’t have health insurance.  I understand that, but if right now you are young, healthy, and able to work then now is the time to earn and save the most you will ever be able to.

Think about how much you spend in your current lifestyle.  If you can makes changes you’ll be saving probably 25-50% of your paycheck and be blown away when you see your savings account start stacking up like gold inventory as in the Federal Reserve in NYC, NY.

Pay day is my favorite day. Don’t let your hard earned money slip away!

In the military just as in the corporate world we are basically paid twice a month.  The 1st and the 15th.  As a previous pizza delivery driver those days were the best to make money on.  Some drivers would just only work on those days because tips are better because people are paid.  Now I am going to talk about saving your hard earning pay day money.  Creating some type of budget if it be in your head or in a planner book.  You need to know what you can and can not spend because if you don’t how much free money you can have to spend you will end up with nothing left to save until your next check.  Many people live paycheck to paycheck.  It has even happened to me when I was very young.  At a certain point I just understood the meaning of money and the bigger vision of keeping more of it would get me ahead in the future.  Try to save at least 25% of your income.  Currently I earn around $3000/m after taxes.  Not a lot for living in Hawaii, but enough to be about to save at least 35% or $1000/m to invest with.  My ideal thinking is to invest everything I can into stock market options.  At some point I am going to be very right.  I have been actively studying the stock market for over 10 years and just recently stock options for the past 2 years.  I’ve learned a lot and I’m starting to trade smarter from doing mistakes I’ve already been taught not to do.  I can’t say I am much of a rebel, but everyone at some point is a child and you are going to get spanked hard by one play or another to teach you a big lesson.  Sometimes loosing so much money in the market can be a very huge motivating push that can help you go from rags to riches. 

Now back to pay day.  If you are going to be better off the next month you need to have it in the bank.  Call it saving for an emergency or cushion money or even money you are willing to give up for a bigger vision of your future.  Yes, I have lost money in the market.  I’m working on making my losses small and my profits larger.  For every person that is loosing money there is someone or some investment firm making it and I want to become that person that profits.  I know what you are thinking.  No way I want to loose money in the stock market and you are right.  You need to study and have conviction about when you trade know absolutely your trade is going to work.  If you don’t feel the stock market is your veichle for future cash flow then consider saving around $5000 and buying a condo or small house (getting 100% loan financed only paying closing costs).  I bought a small home and receive $725/m rental income from it with a $653 mortgage.  Not much rental income but owning it pays off HUGE with my yearly taxes receiving more paid out money and I can say I own something. 

I hear many people say they want to take some money from their paycheck and invest it in bank deposits and bonds.  Personally I just don’t think you make enough for your money just sitting there, but if you don’t believe in a little more risk creates a much bigger return then do it.  I just hope I can motivate a person to save money.  Everybody just seems to spend it all then they think I’m rich because I don’t spend mine.  It’s choice, you’ve got it and so do I so use it and think long-term with a short-term money management style to create more choices for you and your family long-term.

 Here’s a story of my parents.  I remember as a child listening to WHRO 90.3’s 5 P.M. wall street radio broadcast of the Dow Jones Industrial Averages and Nasdaq Monday through Friday.  My parents would invest $50 a month into 1 local company every month and did this for years.  12 years later with around $8,000 saved from buying 1 to 2 stocks to equal $50/m now they have the choice to help them buy their dream home, a new car, help pay for college, use for medical, or just keep investing.  This is the power of saving and investing even as little as $50/month.  My parents never made much money probably together less than $30,000 a year having 4 children.  We lived in a small town-home, ate crockpot soups, rice, and simple meals rarely getting fastfood or deliveried pizzas and really never going out to a resturant.  We sacrificed a lot of luxuries, but I feel as a family we were happy.  Christmas was never expensive because we always found it fun to buy a million gifts from the dollar store.  Sure it sounds ghetto?  It isn’t.  My parents made an attempt to buy us each at least one nice gift whether it be some new clothes, a bike, or something we needed not necessarly something we wanted.

 Remember a small sacrifice to start saving your money can pay off big when you need it most so start now.

My first blog inspired by other financial bloggers aimed to help individuals learn how to increase their goals to a faster retirement.

Hi.  I’m Paul Meyer and will be writing this blog under the name Finance Ninja.  I thought up the name fighting between Money Kung Fu and my cyberspace nerd name elektrowhiteboy.  I’m an ordinary big nerd.  I think up the craziest things to say, do, and help people with.  I am great at saving and creating ways to make money.  So I thought Finance Ninja was the best general name for this blog I’m going to pour my heart and soul into.  Unlike other financial wisdom bloggers I am going to go down other dark roads to help you learn more about the power of money.  Money can help you or destroy you, and you really need to choose right now in your life what it will be.

 I am currently in the United States Coast Guard serving a 4 year term with around 3 years and two months left at this point.  I’m very confident in my decision in join the USCG to save money, surf more waves, and live in a fresh new place.  To make a comment on that you can move anywhere, but you will always be the same person inside so lets find out really who you are and help you manage your money more efficiently.

 My name is Paul.  I have an addiction and it is saving money.