Irrationally mad decision making to obtain the American Dream.

how to become a millionaire

How $60 a month to invest in an online home-based business doesn’t always equal results

I’ve been doing multiple home-based business over the past 10 years. I’m not going to tell you not to do a home-based business because out of the millions of people that start and work one each any everyday a small percentage 1-5% succeed and live a good life. However, when you invest only $10, 25, 60, 100 a month into a business in which you buy product for points so you can get more points and get commissions off everyone you bring in type of points sooner or later your well of motivation will dry up my friend. There are some well established good home-based business companies such as Melaleuca, Quixtar, Mary Kay, ex. However, you have to be a very strong leader-type of individual and sadly most of us are just followers. This being said do it! The most you can lose is probably less than $500 bucks. This is nothing and you won’t feel so disappointed if the results aren’t what you expected (making $100,000 a month off of $60 per month investment).

-p

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Apple Inc back at $228 and climbing – Obama Healthcare Bill signed into law – YES! Now I predict stocks can continue their uptrends without the “unknown”.

Ok Apple (AAPL @ $228) it’s about time. I’ve been in April 10′ 220 call options and have been watching this stock play around the 220’s driving me nuts because if I could commit to trading it full-time I could of been in and out many times for small profits. I suppose my option is probably still negative right now until it movies over $230’s in which it will likely run fast into the new iPad launch the first week of April 2010 in which I’ll sell my options at around a 25% profit (2 weeks, a bad trade). I’m psyched about the iPad. Many Apple geeks say “screw it” just because you can do everything on an iTouch or iPhone and put it in your pocket. For me though I’ve held out. I might even have to wait until the iPad 2.0 with a video camera built in so you can walk about doing skype/video conferencing anywhere. I like the touch screen and will likely just use it to show off my portfolio and use the Hitchcock application to practice creating a film.

I don’t even have my 2009 iMac anymore. I offered it towards collatoral + all my HD video gear to be a co-owner in www.icanhandlethat.com (not live till June 2010) in which I’ll be doing media full-time and be an owner. I’m really stoked for the development of the company and it’s purpose because it is what I love doing right now which is helping small businesses in media and promotion. So even if I had an iPad I’d have to use my Art Institute school computers just to download the apps on it. I would definitely bypass the iTouch to get a larger more versatile iPad.

President Obama signing 2010 healthcare bill into law

As for President Obama’s healthcare bill finally signed into law I’m kind of glad the fighting is over and now we can focus on the economy (even though the $1 trillion cost will have a real affect if we don’t tax citizens (the rich) more to pay for it).
The new healthcare focuses on “preventive health” and that DOES MAKE SENSE. I’m just hoping as a person that doesn’t have healthcare that I’ll be able to get it affordably and be able to get the “preventive” things that keep us truly healthy and vibrant such as chiropractic care, acupuncture, yoga, green foods, and massage. If it won’t cover any of these “true preventitive” healthy living precautions then, well, that will just suck. If I’m going to have to pay high taxes as a broke student that is unemployed currently then at least give me some massage and acupuncture to take away some stress!
I’m glad Obama is the first black President (or should I say half black half white, does it even matter?) and made it his legacy to get healthcare for once and all changed. I thought the great former President Bill Clinton would get to do it. He’s my favorite. A man of the ladies while also being a great peacemaker. President Obama took a big risk in his presidency and I like risky people. He didn’t give up and now it’s a law passed, a super huge one. I suppose everyone better start investing in healthcare NOW because a lot of money will be funneled into healthcare from the government and then people working for the business. Just think about all the businesses that will get paid “no matter what”. This will create a lot of niche sectors currently profiting become likely gold mines in the stock market.

-pm


Four Step Plan – How to Become a Billionaire by Long or Short Capital

I was doing a search on my blog “how to become a billionaire” and on #9 in results was this link I thought was interested with Long or Short Capital blog with it’s four steps to become a billionaire and what billionaires need to do.  One main suggestion was to be outrageous.  I thought it was very funny and enlightening.  I still can not figure out if the blog is a joke or if its real.  Some of the posts are outright ridiculous (like mine), but they sound real, are they?  Anyway if you have some huge dreams to become a billionaire then you should definitely review this blog post.

-P


how to become a millionaire billionaire by a finance ninja

As referred in “how to become a billion” post #1 here and also in post #2 “how to become a billionaire in 20 months” my site statistics show that the number one thing financial internet searchers are seeking is how to become a billionaire or millionaire.

Now I admit I did work my search engine SEO skills to find an audience like me interested in growing their wealth and becoming a millionaire at some time in their lifetimes. I didn’t expect such a huge amount of visitors just seeking how to become a billionaire, but not really “how to obtain” it. I guess once you tell them the truth and how and what you forcefully need to do yourself they kind of turn the cheek. If you do want to become a millionaire then start paper trading options now. It isn’t hard to do, but it is hard to master it so you can earn money hand over fist. I’ve been working at it over 5 years. I’ve gotten really close. I’m writing this 3rd post now because although I’m 100% practice paper trading options at the moment I think I’m the closest I will ever be and certain to hit my goal into the year 2010 after more than a full year of just paper trading NOTHING ELSE. Yes, sometimes I do want to trade an option really really bad but I have to force myself not to if I want to gain the confidence that I won’t trade when I really don’t need to and in my case I’m not ready. I’m no expert although I know a lot and understand much about the markets. If I want to become an expert then I need to stick to my guns and keep paper trading like many other truly successful traders before me.

So before you comment and tell me you are a teenager with a high IQ and you want to live on billions before you are 18 I suggest you start paper trading to meet that goal. Plus no matter how smart your IQ is that doesn’t reflect anything when it comes to trader unless you have a high emotional IQ and a high discipline IQ. Without those two you are shit out of luck no matter how big and brainy you are!

-fn


Do you want to be part of my $300/month masterplan?

Here is an e-mail I wrote to my sister at Sunday January 27th at 4:19 A.M. tell me if this is brilliant or bust? I know as a group we’d have to create rules and regulations no doubt, but the idea I think could work.

-Sisters Name-,

Sisters Name-, I’ve been looking at the Austin tx real estate market and it is compared to Virginia beach 5 years ago. It has a hotter job market, bigger city, and better growing economy but the prices of homes haven’t jumped much yet. Imagine mom and dads home when I helped them get it was $129k. now its worth over $300k (and that’s a low estimate). I’ve found so many homes at $100-130k in Austin right now with same size, big yard, and 5-15 miles from downtown Austin (this city is actually building a light rail system to san Antonio, tx within 2 years). It seems rent on one of these homes is about $1000/month so you’d earn starting at $100/cashflow to pay for property management fee with a mortgage of $900. I just wanted to know if you’d really want to partner with me and start a real business. For what you are paying in Richmond you can get double in Austin, tx newer to an up and coming city. If you’ve read any economics millions of baby boomers are headed south to FL, TX, AZ, NM, NV.

Some of these homes are in foreclosures so we could still negotiate a deal and bring the price down. Companies like Dell and IBM are located here. Can you say that about Richmond? Or Virginia beach?

Here is another good buying point. The fed just cut interest rates .75pts and plan to do it again meaning mortgage rates are going to drop so buying homes continues meaning home prices are highly likely to move much higher again. So right now with home prices knocked down 10-15% is the time to buy even if you are long-term and want to hold. Your mentors should of taught you about equity in a home and using it meaning you buy a home for $100,000 and it goes up $40k in equity now you can extract that to use to buy more homes to increase your real estate business.

I really want to buy a home in Austin, tx. I have friends in the coast guard and network contacts that say great things about it especially the thriving music scene.

I’d be willing to split everything down 1/2 way rental income, equity, and future sale profit if in return you’d be willing to pay half of everything such as mortgage, repairs, taxes, and capital gain taxes on final sale.

How this will benefit you now and in your long-term future: lessens your risk, less capital to buy rental properties, builds your portfolio, and long-term selling a home 10 years from now it can create a large nestegg for retirement income that would otherwise not happen if you didn’t buy and hold. I’m also willing to go 1/2 way with you on any of YOUR deals in Richmond that your mentors help you find that break even or bring in a small cashflow that are low value and definitely going to appreciate over time.

Sisters Name-,. I need a partner. I do everything by myself and I crash a lot I don’t have outside help with decisions, I basically have limited communications, and limited capital. I’m not asking you to quit your job or your massage business or anything else. All I’m saying is that more people you have to work with the more capital you have and the more opportunities you can make like the game Cashflow. Also for instance having a co-signer getting a 5-5.5% loan is a huge difference from applying by yourself and getting a 6.5-8% loan.

I wish are family would work together. We could build an empire if we just worked as a team and stopped being duschbags. I fail a lot because no one cares. You are going to start learning yourself that if you don’t care about others it hurts business opportunities but when you care then people work together and get things accomplished.

Just think about it. If all 4 of us kids donated $300 a month to a Limited Liability business we put together such as a real estate trust we would have $1200/month to buy the first rental which could substitute a $1200/mortgage or two $600/mortgage (two small homes or two condo apartments). Now just say we only bought two properties and over 10 years with inflation these properties went from $80,000 to $200,000 because of they were nice location and buildings and appreciated in value. Now that’s $400,000 (2) sold divided by 4 people is $100,000 each (not subtracting capital gain tax).
Now we spent each $300/month for 10 years (120 months * $300) which means out of our pocket we spent investing $36,000 and after 10 years we earned $64,000 or almost a 200% ROI.

Now that isn’t the good part. The good part is that while the units are rented each $36,000 (*4) builds up to $144,000 or around $14,000 a year. If the rent already pays the mortgage then we will have $14,000 to buy at least another rental each year. So within 10 years we could easily have 10 rental homes appreciated at well over $1 million. Now that same $36,000 investment ROI can be worth $250,000 each in 10 years realistically that is almost a 600% ROI on your sacrificed $300/month share to the partnership of 4 people working together to achieve a goal. You will be 41 and can have possible $250,000 or more in the bank. (I say or more because I’m just saying 10 properties selling at $100,000 each with little appreciation).

Now do you understand why I wish when I send all my sisters business information they would listen to me? I’m reading the bible more now and all Jesus talks about is how people don’t believe and have little faith in him. I feel the same way. I don’t think any of you guys understand how many sacrifices I’ve made to achieve my goals, I think just for that you should have lots of faith in me. Like Gary Williams said when he was dirt poor he and his family had to sacrifice to get by and worked together to achieve their goal to prosperity.

Consider my $300/month off. I wouldn’t just say we are partners I’d do it legally. We would create a real limited liability company as a tax shelter and tax relief for the properties. A separate business bank account so you can keep tabs on the property, rental income deposited, repairs, and profits. $300/month is something I know I can do. I won’t struggle with $300. I think anyone can do $300/month.

The hard part is initial down payment and closing costs potentially $4000-15000 which we would build up by everyones $300/month buy in to the real estate company to make it happen.

Here is another good point to make. Listen in. Sisters Name-, and Sisters Name-, are both 1st time home buyers. This means the first two properties could be both $0 down with a 103 LTV loan. So that is two properties for $0 with $1200/month (4 people) paying down the mortgage/collecting rental income/appreciating in value.

If you think this email makes SENSE to you then forward it to monica and angela and talk to them on the phone about it seriously. I wouldn’t have control over anything just searching for properties just like you to bring up to our “conference call meeting” to discuss possible opportunities.

To show you how serious I am I’d be willing to share the profits of my current rental which would be about $25/cashflow per person with $60k equity to use in it ALREADY appreciated. That means I’m willing to share $15k profit in the sale of it RIGHT now with anyone who is interested in creating a real company with. I’m sharing $15k of my future capital gains with any future partner willing to sign up on the dotted line.

Please consider my offer.

I thought this was one of the best ideas I’ve ever come up with this early in the morning doing homes, search homes for sale, and studying stock charts. I’m sure there are some flaws but they could be easily fixed with rules and regulations within the limited liability company. I figured what happens if someone wants out? I suggest a rule that the person will be paid back their full investment plus a guaranteed percentage on their money of at least 4% a year of what a bank would pay on a savings account or there would be a time delay that you’d have to wait X amount of years before you could withdraw money. The entire point would be not to touch the money for 5-10 year rule to let homes appreciate and pay off mortgages. I think if you had 10 people joined in doing this with each have a 10% share this could be extremely realistic. I’ve heard Filipino communities do this raise money for families trying to start a business if they can not receive loans. Say 3 families chip in $500/month now thats $1500/month to work with and then each family is paid back their money plus interest or in a partnership of the business. If this $300/month is something you might be interested in doing but you have no one that wants to try it with you then do it with me! Currently I have one USCG co-worker who said yes to it so once I plan to get back to Hawaii I’m going to form an actual company so everyone legally understands the risks and rewards and also everyone would get a vote on which properties would be bought and sold. This is basically a 10 year plan but could be much shorter or longer depending on the markets and where the group of investors want to go. Say 10 investors build a $5 million portfolio over 10 years and now instead of selling the property since the mortgages are paid off they’d rather all collect a retirement income from the cashflow the rest of their lives pay their business tax and receive an actual income of a likely $2,500/month income EACH from rents collected if all mortgages were paid off from constantly putting in the pot $300/each or $3000/month (by 10 people).
On a $90,000 condo or small home within 3 years its mortgage could be paid off if the market was slow but rent was steady. So besides one of my friends of the 15 or so people I emailed it to no others have responded and I know the majority check their emails daily. So what’s up with that? Am I crazy? Is this just another bad idea or can this be achieved?


Energy drinks, Smoothies, Pickles, and Apples + makin it.

I’ve noticed from my statistics that the majority of people that find my blog come to read about old information about stocks I’ve blogged about almost a year ago. These posts continually get clicked on and the readers don’t click on anything else or explore, this is a problem. For one thing if you are going to read some of my posts then at least see what else I have to offer! I find it funny because blog readers are commeting on old posts about stock picks and trades, but they don’t actually search for new posts on the same subject!

For example it was great to trade WTVI.PK last January 2007, but believe me you would not want to touch the stock now. I think this goes for almost every penny stocks I’ve encounted. You basically want to buy when people are buying then selling before people start selling if this makes any sense to a real trader. We aren’t trying to hurt anyone, but these are penny stocks. They will eventually fall. Hence, check out SPKL.OB, spicy pickle franchising, it did fall. I lost some money, but I don’t feel the run is over yet. For one thing it is a real operating franchise even though it probably won’t make a profit for a while. It’s a pretty awesome hip trendy fresh-healthy food place and that is what is going for it. Another stock which I can’t even sell out of is CCNG.OB, sports collectables inc. I can’t even sell at $.0001!!! I’ve had a GTC order in for almost 2 months unable because no one will buy my 11 million shares. I’d actually like to hold on to the stock because the sports company is working and doing small stuff like creating kiosks in malls to sell their products to sports fanatics. They are finally starting to think like business professionals. If you want to sell and create a customer base you need to get your product out there.

So I’m going to do some more research on Hansen, Jamba Juice, Jones Soda, Spicy Pickle, and Apple Inc since it is searched so much. I guess investors are really into buying food stocks. As for Apple (AAPL) it just has buzz now and beating many computer makers in the race to take its share in selling personal computers and personal devices.

It has been hard posting about “makin it” because clearly I haven’t yet. Yes, I have increased my wealth and networth so to say, but I haven’t “made it” so I can retire young. I have 2 more years before I’m done with the military. I know I can do it. I just need to strap on a harder thinking helmet and start bowling the right balls to score some perfect strikes.

cheers, FN


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!


Trailor park success to be or not to be?

Well all I’ve got to say to yaw financial blog readers out there ya hear is that my good old trailor park will be a success becomes I’m going to make it one. I’m a proud trailor park owner. Below is a picture of some of my lots of trailors I own that will generate my future retirement with the right plans to help people and help myself. (Click to enlarge picture)

trailor park

I’m currently collecting enough cashflow to pay my mortgage, property manager, and all utilities.
What I feel I need to do as a landlord and real estate investor is to sell off my trailors as “home ownership” to the tenants to create long-term tenants that will fix up their own trailors over the time they own it and receive a small tax break on their taxes for interest they paid on their mortgage note. Then I’d receive longer-term tenants leasing the land the trailor is own. If they defaulted on their loan I’d foreclose on them and take back the trailor since I’m the bank.
I’d inflate the prices on the trailors I sell on my land to create low enough payments to be more affordable then they are currently renting them for to create an incentive to buy the home they are in. I’d still pay all utilities (water, gas, electricity, cable) as a full service trailor/rv park, but I would not have to pay for upgrading and repairing the trailors saving me a lot of money. I’d also be able to sell my mortgage notes at a discount to investors to earn back my initial investment of $10,000 and possibly a lot more. My goal is to buy 4 more trailors on the 4 empty lots and sell all 10 for at least $10-15k each collecting my mortgage note cashflow plus my land rent of around $200 a lot. If I could pull this task off with my property manager cooperating and on his game I should be able to pull off around a $3,500 net cashflow.

As easy as it sounds it is not in the least. I do understand great costs will be ahead. I am already redoing the flooring in a couple of trailors and some cosmetics to sell them. I’m also paying for better upkeep of the land they are on for better curb or should I say trailor appeal.
I’m hooking up a coin operated dryer and washer to increase my income. I know the tenants will use them and I’m actually considering building a mini-laundry mat on my property because its a major road and there aren’t any near by. I figure if I invested in at least 5 of each washer and dryer and charged $2.00 a load it could be worth building a small structure just for having people come, park, and wash their clothes, plus having my own tenants using them.

I took out a loan and I’m trying to use the least of it as possible. Unless buying more trailors I don’t want to invest anymore then $20,000 into the property because I want to pay back my loan before the payments are due. At the same time I need to create a master plan to make this trailor park a success in a rather small town in no-where Tennessee. There is a lot of traffic daily near my piece of land and many apartments are near it so a small laundry mat could possibly be a good idea to own. Have any thoughts?


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


Buying Apple Inc. (AAPL). Why I’m bullish for AAPL & WTVI

If you bought Apple Inc. (AAPL) today at $86 I’m 100% confident tomorrows high will at least be $1-2 pts higher and close positive. I’m also confident AAPL stock has reversed finally to the upside and big buyers have stepped in. This is probably a short-term correct meaning it might go up for 3-4 days, but that is enough to make some money. If AAPL stock hits $89-90 by Friday I’m right. If it doesn’t then the stock is heading farther down quicker.

Check out this chart I have of AAPL. This is why I think a definite reverse in price is about to happen: (click on picture to enlarge)

aapl chart

Recently I’ve aquired half million shares of WTVI.PK and it is up around 65% within the past 3 days (which means up $.002 cents!). I plan to keep the stock until I think its a lemon or it hits $1 which ever comes first. I’m considering buying another half million, but I want to bring up my account first, meet my goals, and then buy more. I’m really excited about the company because Bill Gates backs the techology mix with social networking which is always a plus and the site definitely has something new to offer any consumer that has a wi-fi device that wants entertainment for free. I feel www.wi-fitv.com will provide this and get better at what they want to offer the more popular the site and service to members it becomes just like utube.com and myspace.com

The stock is making great buying moves. Current volume is going up every day and all the diluted floating shares are being bought up and that’s what I like to see. The companies market capital is only worth right now probably around $200,000 dollars. This isn’t even a million dollar company. So if they aren’t able to get advertisers and sponsors within 6-12 months this company will be worth $0 most likely because of bankruptcy.

Here is the daily and weekly chart of WTVI.pk – Both trend charts are showing a reverse in the stock price going up. It is currently hitting the bollinger bands on the daily which could make it come down, but if the stock is bullish and investors are buying in before the announcement then it should break through the BB. (Click on the pictures to enlarge.)

wtvi stock chart

wtvi weekly chart

If you’d like me to research your stock and blog about it shoot me an e-mail. -FN


AAPL Earnings – Whammy! Plus life on the boat…

Life has been somewhat groggy here on the boat. My super duper options strategy did not work on AAPL. The stock did pop up 4 pts in afters just to be sold off by insiders to open much lower creating a doji start (lower opening gap). Well you know I don’t care. Okay. I was wrong the stock price didn’t goto $105 or higher as I was wishing so screw it I’m playing Puts on AAPL as far as it will go. Last year it has records earnings too just to have the stock price drop from the $90’s to the $65’s. I told my mom the price was going to drop no matter how good the earnings were and I was right, but she and the stupid iPhone news convinced me other wise to play a small position of calls.

I played a too far out of the money play at Feb 125 calls worth $0 now and a smaller way out of the money Put position of Feb 75 Puts and both go down. I’ve been finding this pattern of after earnings both out of the money options go down. This makes NO sense. I’m sure there is some reasoning behind it, but it makes my super plan fail fail fail.

I saw the charts turning around 2pm EST for AAPL making a small bull attempt just to go further down. I bought in at around $90.50 and currently its $89. My option is in the money (yes for once in my life time) APR 90 Puts. If it does anything like last year and the years before that its going to fall hard for a couple of months the move back up with its new iPhone product if it sells well. I’m not upset over being wrong even though it was a real money play. I was so sure AAPL would either fall very very hard or jump very very high. It did go down 6% but I was expecting a bit more dramatic hit then that. I suppose in the next few days it will be down another 10-15% if I’m correct. The chart indicators show a Put play with an engulfing red candle and a lower opening gap doji star with a reversal down hammer. My Feb 75 Puts probably will become profitable if AAPL really falls within the month which could make me two over 100% plays for Feb 07 beating my monthly increase of trading cash goals and closer to my $1 million trade mark.

As for ship life my new working schedule has made me a bit groggy, but I’m starting to get use to it. I’m making a couple of new friends I hope and finishing my qualifications to advance in rank within the next 6 months for a modest pay increase to increase my savings per month.
We will soon hit our next port call. I hope I come back with surfing pictures to blog about.

later -fn


50/50% earnings report scenario – The great idea continues – Update

Well guys it seems I have a bit of depressing news on my research and option practice plays on my 50/50% earnings report scenario play…Out of 5 earnings report only 1 worked to receive a +27% gain in 1 day, which was Wells Fargo earnings. Even on my higher priced stocks around $50 the movement wasn’t anymore then 2-3% so the options BOTH went down interesting enough if the stock moved up or down, which doesn’t make any sense to me. I bought next months options (Feb 2007). If I don’t buy far out of the money then I’d have to have a large movement in the option to just break even where as out of the money possibly with a higher priced stock the movement could be a bit more volatile moving the option faster. So far in my practice plays I haven’t see a profitable trade to my liking.

I really belive this type of trade can work. I just need to fine tune it. Apple Computer’s earnings is tomorrow and I know with all the excitement behind it will either pop high and go higher or tank. What I did learn from my practice plays is that it has to be modified in the direction you want it to work. So if I think AAPL @ $97 will go higher after earnings then I should buy a higher pecentage of Call options and a lower amount of Put options for the insurance just in case I’m wrong. So this is exactly what I did going into earnings 75/25%.
If I’m wrong I feel it was a profitable chance worth taking. I feel even if I only make at least +$300 its profitable. Today after hours I’ll see what happens with AAPL.

As for now the 50/50% play hasn’t worked like I dreamed it would. I suppose every trader would of been doing it. I am going to keep doing my research practicing this play in my log book for every name bran company name until earnings season is over to see if I can fine tune it down to make it work or at least see how my options change before and after earnings.

cheers – fn


I call this the 50/50 Earnings Report Scenario

The past couple of days I’ve been trying to figure out how to make a safe small trade that could potentially increase my chances of making it to $1 million in my 10 months goal is what I call the 50/50 earnings report scenario. You take a very volatile stock and buy 50% Puts and 50% Calls way out of the money to earn well over 100% the day before earnings is annouced. If the stock pops very high or low based on a surprise beating wall street analysts or missing analyst estimates you can make money either way. Because 50% of your money will be worth $0, but the other even 50% of your money could double making the 2 trades together profitable.

Say you take Apple Computer Inc. which has had a great year and expected to beat earnings with major increasing sales with new iPod units and iTunes music download service. Let’s also not forgetting the growing market share they are taking in their thriving computers sales of their newer computers. Apple’s price has been up and down on positive and negative news. Its also possible the stock could tank even if the earnings are good, believe me I’ve seen it happen with GRMN.

This time I’m going to play it cool. I’m going to play this earnings game smarter. Since I have received a fat profit with the stock this month I am only going to take a small bit of the profits to go through earnings. So say if the new price targets on AAPL are $110-120 and the price of 1/12/07 is $94 and I expected it to mildy go up 5% that would be around +5.20pts, but I expect AAPL to jump with this bullish market at least 10% making the stock open around $105 at least. If that did happen my way out of the money CALLS would be well over 100% and I could sell out being in the trade less than 1 day. Same options for a PUT. Say AAPL misses or beats but tanks 5-10% down to $80-85 I could still come out a winner. No matter which was the stock moves fast I will be write. If this trade works I could practically use it on every stock that reports earnings.

The math behind it for you to understand is this: The 50/50% earnings report scenario.

If I buy $500 worth of calls for .15 = 30 contracts
I also buy $500 worth of puts for .20 = 25 contracts

AAPL reports earnings = The price jumps up or down 10%
With $500 into 2 trades one will be practically = $0
But the other will be worth at least $2,000-3,000 more.

Summary of the math:

You take your profiting trade minus your loosing -$500 trade = Up +$2000-2500.
I call this the 50/50% earnings scenario trade. Now, if the stock doesn’t move at all you can just sell out of both positions most likely for a even trade with minimal losses except commission costs.

On January 16 I will buy into my positions and on January 17 after Apple Computer reports earnings I will either be +2,000 to add to my goal or just broke even and sell out of my trades.
I really do not think breaking even will be it with all the enthusiatic investors behind AAPL.

cheers, FN


How to become a millionaire in 10 months – Updated

This blogging was on:
HOW TO BECOME A BILLIONAIRE IN 20 MONTHS BY TRADING STOCK OPTIONS
HOW TO BECOME A MILLIONAIRE IN 10 MONTHS BY TRADING STOCK OPTIONS

Below are the revised rules:

FIRST THE RULES:

RULE #1 – Your monthly trading cash has to earn 100% compounded for 10 months starting with $2000 in your account. You can start with lower just add on 5-10 more months starting with as little as $300.
RULE #2 – You can only buy a stock option price out of the money or below $2 if it is right next to a known positive event (Apple Mac Expo or earnings). If not then only trade in-the-money.
RULE #3 – Your stock has to be volatile enough to move $1-3 in less than 1 trading month.
RULE #4 – You can do 1-4 trades a month for the next 10 months and your 1-4 trades will equal 100% a month. As soon as you hit your 100% goal, even with 1 trade, stop trading and start researching and practicing your next trade for next month. Try to trade less than 50% of your trading cash to do 1-4 trades making 50-100% each to reach monthly increase goal.
RULE #5 – You can not add money to your account. It makes it easier to lose money and if you don’t add money you really know where you are at with you goal.
RULE #8 – You can trade any type of option, stock, ETF, or index fund in your account.
RULE #9 – Remember to extract big gains for taxes next year. (MOST IMPORTANT RULE)
RULE #10 – Greed is a killer. So if you are 200% for the month on your option I’d consider selling and getting out of your house, turning off your internet, and accept a smaller % gain next month because you are further ahead.

IF YOU HAVE BETTER RULES, SUGGESTIONS, ADDITIONS LET ME KNOW.

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

NOV 06 : +17,000 – Pulled $15,000 out to pay off second mortgage.
DEC 06 MONTH 1: $2,000 – Down @ $1,700 12/14/07
JAN 07 MONTH : $6,000 – Up @ $7986 1/12/07
FEB 07 MONTH 3: $12,000 – Up @ $39,724 2/24/07
MAR 07 MONTH 4: $24,000 – Down @ $31, 645 3/15/07
APR 07 MONTH 5: $48,000 – Down @ $20,980 4/20/07
MAY 07 MONTH 6: $96,000 – Down @ $9,786 5/21/07
JUN 07 MONTH 7: $192,000 – Down @ $5,790 6/18/07
JUL 07 MONTH 8: $384,000 – Up @ $8,625 7/24/07 Added $2,000
Crap, I just broke rule #5.
AUG 07 MONTH 9: $768,000
SEP 07 MONTH 10: $1,536,000 @ +$26,400
OCT 07 MONTH 11: @ +21,100
NOV 07 MONTH 12: @ +1,300 (actually account amount, holy shit. Yes, I got whiped out with a very very risky trade. Knowing the DJIA was falling into the fall months would of helped a bit on not buying risky out of the money Calls for NOV 07 expiration).

Updated 11/20/07 =D So here I am again starting with $1000 basically. I’ve made my monetary trading goals for 2007 and pretty much lost it all too. Hmmm….”easier said then done” they say. But if you are a great trader, keep losses to a minimum, and you are up for the challenge you might be able to pull it off. I’m not quitting. I’ve got years ahead of me. One year I WILL BE SUCCESSFUL. I can do it. I just need to trade better and more consistent.

CONTINUE FOR 10 MORE MONTHS TO BECOME A BILLIONAIRE

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

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

https://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


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
—————————–> made it to $44,000 by Feb 2007 starting with $1000
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:

https://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