Wow! What a ride it has been for the stock market this month, especially the financial sector. Many, such as FNM, FRE, WM, and WB have lost 90% of their value in one year. The lowest point for most of these stocks took place on 7/14/08 or 7/15/08. Then in one week their value doubled!
Folks, this is where you make quick CIF. And if you time it right, you can make a lot of CIF. I just figured this out for myself.
Up until 7/14/08, I never thought I would trade stocks. I’ve always felt that it was another form of gambling. Not gambling like playing the slot machines, which is totally random with no skill factor. More like poker, with both elements of luck and skill. Stock traders use technical tools such as ratios, charts, and equations. Similarly, poker players use tools like pot odds, draw odds, and hand odds. Both stock traders and poker players use bids to bluff their opponents.
I am terrible at poker and have lost money in most of the home games I’ve been in. So I didn’t think it would be wise to risk money in the stock market. But for some unexplainable reason I took interest in stocks on 7/14/08.
That morning, I was doing my usual round of news gathering on the net when I landed on a news article about Rite Aid (RAD). They were saying how Rite Aid was heading towards bankruptcy and that shareholders will lose all of their equity. When I looked at the RAD price, it was only $0.98. I don’t know much about the stock market, but I know plenty about the retail pharmacy sector. CVS and Walgreens are the largest and second largest retail chains, respectively. CVS stocks are around $38 and Walgreens are around $34. Rite Aid, the third largest pharmacy chain in the US with over 5,000 pharmacies nationwide, was at $0.98. Can you believe that? The third largest pharmacy chain, with expected one year revenue of $25 billion, on sale for 98 cents apiece?
If you don’t see the opportunity to make mucho CIF, then call me. I will send you a “clue”.
I saw potential and acted on it. I immediately instructed my Self-directed IRA to open an account with TD Ameritrade. But the whole transaction took a week and a half. By the time my TD account was funded and ready to trade, RAD had gone up to $1.45. Most of the stocks on my watch list doubled: WaMu (WM) 3.23 to 5.92; Fannie Mae (FNM) 7.00 to 15.00; Freddie Mac (FRE) 5.26 to 10.80. In one week I could have doubled my money. That’s the type of returns you need to become a mogul.
My point is not to dwell on what could have been, but to tell you about positioning yourself to succeed. Moguls have multiple streams of income and are open to different ways of accumulating wealth. You can not overlook the stock market.
Here are my moves so far:
First ever buy: 3,404 shares of FNM at $11.75. Sold in one hour at $11.85 = $340.40 gain.
Second buy: 10,000 shares of WM at $3.90. Currently at $4.74 = $8,400 unrealized gain in 2 days.
Third buy: 575 shares of FHN at $8.64. Currently at $9.45 = $465.75 unrealized gain in 2 days.
If I sold my portfolio closing today, I would have had $9,206.15 gain in two days. That’s without doing any work. That is the true meaning of making your money work for you.