Founded by Tyrone Jackson, The Wealthy Investor program demystifies the stock market and teaches self-directed investors at all levels how to increase profits, manage risk and achieve above average returns. Investing and trading stocks is not difficult once you have a financial education and have been exposed to a trading system that consistently works in the long and short term.
Tyrone Jackson is a successful stock market investor, mentor and most trusted Wealth Building Coach to Silicon Valley executives and Hollywood producers & directors.
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Each day, billions of dollars are exchanged on Wall Street. Some of these trades are made by financial institutions like Citibank and Wells Fargo while others are made by insurance companies like AIG and Mass Mutual. One of the techniques used by Wall Street insiders to generate guaranteed income for institutional funds is selling, or "writing," covered calls. This simple technique is well known to the institutional trader, yet it remains a hidden Wall Street secret to the self-directed investor even though it is lucrative and even considered "easy" by Wall Street standards. In other words, you don't need to be a sophisticated Wall Street insider to master covered call writing.
Most investors need more monthly residual income from their stock market portfolios. Rather than investing in Mutual Funds or buying and holding stocks hoping for an increase in value, why not dedicate a portion of your trading account to covered call writing every month? The truth is that any investor with an online trading account can earn guaranteed income each month selling covered call options. However, in order to do this, acquiring the right education is vital.
Here's how trading covered call options works.
If an investor owns 1000 shares of Disney stock at $55 per share and is willing to sell those shares for a profit, that investor can sell the right to a second party to purchase their shares at $56 dollars per share. In Wall Street terms, the investor would be selling the right, but not the obligation, to a second party to buy their Disney shares at the $56 strike price. The income from selling the rights is referred to as the premium. The premium for selling a thirty-day call option could be as much as one dollar per share.
So what's the down side of selling covered call options? If Disney shares should rise to $61, in the above example the investor would be obligated to sell their shares at $56. However, if Disney shares never cross $56 by the option expiration date, the investor gets to keep both the shares plus the premium income. The key is knowing which stocks to hold for selling covered calls and which to invest in for the long term.
For decades, covered call option selling has been a well-kept Wall Street secret used largely by savvy Hedge Fund managers. Today, no matter what your background, the online trading software in most brokerage accounts has made it possible for the retail investor to profit right along with the big boys- all you need is a financial education to be on your way!
As of March 13, the Dow Jones Industrials -- you know. those top 30 blue chip stocks -- continue to rise. Which one of the 30 Dow stocks makes the best long-term investment? In just a moment, I'll reveal my top three picks. You will want to own my top three picks in both your trading account and your retirement account.
Before I reveal my picks, here is a brief tutorial. At the Wealthy Investor program I teach three important principles. They are:
1) We Don't Marry Stocks, We Only Date Them
In the 21st century, our world is changing at a very fast pace. The company that is the dominant player in a sector today can be a laggard tomorrow. Therefore, we only date/invest in a company that is making money (growing revenue) and maintaining leadership in its sector of the marketplace.
2) Invest In Companies That Grow Revenue
Stock prices rise based on the company's quarterly and annual revenue. Don't buy the stock if you don't understand the story. In other words, as an investor if you don't understand how a company earns money, you don't know the story.
3) Look Toward the Future
Will the company you are investing in be around and relevant in the next five years. No one knows the future but just asking this question before you purchase shares in a company will keep you ahead of the uneducated self-directed investor.
These three principles keep you focused on strong revenue producing companies and future profits.
So without further delay, here are the Tyrone Jackson Wealthy Investor top three Dow stocks you should own. Their stories are easy to understand and they are highly likely to be around over the next five tears. They are:
Disney continues to earn billions from its theme park business and merchandising along with ad sales from its TV networks which include ABC and ESPN.
Disney's annual revenue has increased from $38 billion in 2010 to just over $42 billion in 2012. And their recent acquisition of Lucasfilm and the Star Wars brand will add billions in profits to the company's top line revenue over the next five years.
Coca Cola (KO)
Coke's story is simple. How much carbonated sugar water can they sell around the world? The answer, a lot!
Coca Cola brands include Coke, Sprite and Dasani bottled water. With high profile sponsorships of the summer and winter Olympic Games, their worldwide brand awareness gives them staying power as a dominant player in the carbonated water space.
Coke's annual revenue has grown from $35 billion in 2010 to $48 billion in 2012. Plus Coke just split two for one in 2012. FYI, Wall Street loves stock splits as they tend to push stock prices higher.
My final pick? Drum roll please.
Over the past ten years McDonalds has been a steady Eddie solid long-term date. As they expand into China, the only question is how many more burgers, shakes and fries can they sell all over the world?
McDonalds continues to be a leader in the fast food space. In 2010 their annual revenue was $24 billion by the end of 2012 annual revenue grew to $27.5 billion.
In my Wealthy Investor program we call these three stocks Superior Dow Stocks due to their tendency to rise over time based on consistent annual revenue growth. However, if their revenue were to decline year over year in 2013, then the "date" would end.
Be a smart investor. No date/investment lasts forever. Understand that as our world changes, so will the companies and stocks we choose to invest in. I look forward to your comments.