Tyrone Jackson has been teaching for almost 10 years and trading for over 20 years, and he always starts by teaching his students on and offline to write covered calls. This is a great place to start because it produces guaranteed residual income. We want to own stocks that pay dividends and that allow us to sell call options. 

There are always going to be people who like high risk stocks. They think if they buy these risky stocks for very cheap right before the stock sky rockets they will make quick money. The problem is this pattern rarely happens. You are better off going with the more established names with consistent top line revenue. 

Here are a few examples of high risk stocks that traders have been tempted to invest in for the past few years:

Tesla

A lot of people got excited about Tesla automobiles and recognized their opportunity to have a significant impact on the auto buying market. Had you bought the stock five years ago with a $1,000 investment, today your shares would be worth $8,600. Its not that the company is so great, it’s just that investors got very excited about what Tesla was doing. However this is a high risk stock because the company does not have a long track record, it does not pay a dividend, and it doesn’t have a history of top line revenue. The revenue hasn’t been there long enough for us to follow it as a disciplined investor.

Go Pro

You’ve seen the Go Pro cameras; they are very cool products to own and they capture beautiful video. However, we in the Wealthy Investor program, never purchase stocks from companies that only have one product. Yes they have different version of the same product, but Go Pro could easily be dominated by a bigger player. A company like Apple could come out with their version of this camera tomorrow and knock Go Pro out of the game, because Apple has a very loyal fan base. If you’ve noticed over the past few years the Go Pro shares has gone from a high of $90 per share down to $25 per share. 

Pandora

The problem with Pandora stock is, if Apple decided to launch a music service that rivaled them, Apple would take the market share. Pandora has gone from a high of $37 per share down to $13 per share.

If you are just starting out, you want to start by investing in lower risk companies. If you grow your account over time on the strength of these low risk companies, in the future you may be able to afford a little more risk. For now, your next step is to visit TheWealthyInvestor.net and download the free ebook Trading Stocks for Wealth. This ebook will introduce you to low risk strategies. There is no reason for you to take on more risk than necessary. Click HERE now. 

In order to trade stocks wisely, you need to know the story behind the companies. This requires some research, but it should not be intimidating. One of Tyrone Jackson’s students, Candace Sorman, explains how simple and fascinating the research can be. The stock market is like a game and you just have to learn how to play to start making money and having fun.

Candace grew up in the Pacific Northwest in the late 1960’s. She was taught growing up that it was really hard to make money and that she needed to get a really good job or marry rich. That didn’t work for her. She wanted to get away and see the world so she became a flight attendant. She always did fine financially but it was all about working hard. When Candace followed a friend to one of Tyrone’s lessons, she felt that she was finally in the place where she was supposed to be. She says that writing her first covered call was “earth shattering.” 

Candace has been trading for about four years and has grown to love watching how the market changes. She can get lost in the research for hours. However, she explains that it doesn’t have to take long at all. You learn to read the charts. If you like the picture, you can choose to “date” that stock. Candace advises “You have to try it; it’s not complicated.”

With a basic financial education, she is right. It’s not complicated. So get your education now by joining WITradeSchool.com. It’s time to start making money without working overtime! 

Click here to join. 

The stock market is it’s own universe and the language intimidates many people. Tyrone Jackson demystifies the stock market by explaining some of the basic terminology and some of his favorite strategies. The stock market is not too complicated; you just need a financial education. 

A great place to start is learning the difference between trading and investing stocks. When we invest in a stock, we are willing to hold onto those shares for a long time. We only do this with stocks that are a part of the Dow Jones Industrial Average. It’s a good idea to buy stocks from companies who have a story that we understand. In other words, we know how they make their money. By holding onto these stocks we get to collect dividends: your share of the company’s profits. When we trade a stock, we are selling it for a profit. One of the first trades we learn to make is a covered call. There’s a way to make money on a covered call whether the stock is going up, going down, or staying the same. 

The number one questions that Tyrone Jackson’s students ask is, which stocks should I be trading and which stocks should I be investing in right now? The best way to find the answer is to join Wealth Investor Trade School. The market is always changing and Tyrone can help you keep up with it week by week. 

Learn the language of the stock market and get in the game. Change your life. Get yourself educated and then pass on the knowledge to your loved ones. 

Click here to join. 

Tyrone begins by breaking down some stock market terminology for those who are new:

A Bullish market: a market in which the stocks are generally rising as a whole

A Bearish market: a market in which the stocks are falling as a whole

A Neutral market: a market in which the stocks are fluctuating day to day but not moving in big increments

Covered Call Writing: an options strategy used for generating guaranteed income in which you sell the option to someone you don’t know to buy a stock away from you

Revenue: a company’s income, which is what makes stocks rise

Top line revenue: a company’s gross income

Cost of revenue: amount of money spent 

Float: The amount of shares that are in the public domain for the industry to trade

Small float: a fewer number of shares available in the public domain, which causes the stock to rise faster when revenue increases

Large float: over a billion shares in the public domain, which means traders that are moving 50 – 10,000 shares are not causing the stock to rise or fall

Case Study: Verizon

We like Verizon because it is a component of the DOW Jones Industrial average and it has a large float; there’s a lot of institutional money in this stock. Five years ago if you had bought $1,000 worth of this stock, it would now be worth $2,000. While waiting for that stock to rise, you also would have been collecting the dividend, which is $2.20 annually per share. For 1,000 shares, you would have collected $2,200 per year. 

5 Year Chart:

Real estate can be a good investment, but it has a much larger barrier to entry. To even get started on buying real estate property you have do a to title search, do a credit check, find the right attorney, get a contract, negotiate and so on. Then you might be approved for a mortgage, but there still might be conditions. Then if you finally own the property, there will be repairs and upkeep to the property. The list goes on. 

Now, with the Internet, to start trading stocks all you have to do is open a trading account with a discount brokerage house such as TD Ameritrade. You can then sign into your account on your laptop or hand held device. To buy and sell stocks it costs a mere $9.95 and that is tax deductible. You can get started with as little as $500 in capital. 

Not only can the stock market help you grow your money, but also your stocks become assets for you. You can leverage assets to get loans, to rent a car, or to make that real estate process much smoother if you do choose to buy a home. 

To start asset building now, go to WItradeschool.com. 

Click here for more info.