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Jessie Shaw grew up in Pueblo, Colorado. Her father was a jazztrombone player and also played classically with the orchestra inthe city. Her mom was a homemaker. The arts were encouraged in herhousehold and both she and her sister studied music in college.Jessie attended graduate school at the University of Iowa, then amusic conservatory in Brussels, Belgium before moving to New YorkCity. She has an undergraduate in music education, an MBA from NYUin statistics and marketing, and a Masters of Oriental Medicine.She currently practices acupuncture and Chinese medicine one day aweek and the rest of the week runs the research department for alarge business publication. This job requires a lot of quantitativestudies, and as she puts it, Jessie loves numbers. She is that rareartistic soul that views numbers just like art.
Jessie became interested in the stock market and studied a bitbefore she stumbled across The Wealthy Investor program. She readbooks like “Stock Investing for Dummies” and still couldn’t makesense of it. It had always been a longing for her to understand itin a deeper way. When she heard about Tyrone’s class she knew itwould be perfect.
Trading and investing in the market is an art to Jessie becauseshe feels that she is always trying to understand the essence ofthe market. It has always been rather allusive to her. Now that shehas been studying the market with Tyrone for a year, she findsherself to be working with it on two levels. First she is followingstocks and estimating where they might go next and second she isattempting to understand and have facility with the strategies fortrading the stocks.
The first time the stock market went down after she had startedstudying with Tyrone, she felt like she was in new water with whichshe was not comfortable. However, with Tyrone’s teachings onshifting your mindset, she learned to lean into the strategy.Jessie found a fluidity in her ability to trade so that no matterwhat the market was doing she could find a level of comfort andride it through.
Jessie likes working with DOW stocks specifically because it’snice to know that they have been around for the long-term and aregoing to continue to rise. And if something drastic is going tohappen, there will probably be some foreshadowing to it. Luckily,tracking the news in the business world is part of her job, sotracking the earnings of the companies she has invested in has comeeasily to her. It’s very interesting for her to notice thepatterns.
Of all the strategies so far, Jessie’s favorite is writingcovered calls on stocks that pay nice dividends because its suchguaranteed income. She also appreciates selling in-the-moneycovered calls as a form of downside protection. So far, volatilitytrading has seemed to be the hardest for her, though she had a goodrun with Restoration Hardware stock lately. Her goal within thenext 24 - 36 months is to become really sharp at options trading sothat she can make bigger options purchases in the future, and enjoybigger rewards.
Between her full time job and her creative endeavors, Jessie isable to fit in time to plan her trades on the weekends. She looksat each stock she owns and calculates the cost basis and figuresout what her strategy for the next week is going to be. That wayduring the week she is simply executing trades.
Having this new sense of financial control, Jessie feels moreempowered as a person. There are places that she would like to takeher life and a way she would like to organize her life so that shecan pursue her creative interests with a greater amount oftime.
Jessie says that with anything complicated, it’s better to biteit off in small chews. Do it in small chunks and anyone can getthere if you are very slow and very patient.
Her parting words of advise are “It’s a lost opportunity if youdon’t look into it. It’s a way of not drinking the societal KoolAid of the idea that we can’t do this on our own and someone who isa “specialist” is the only one who can handle this for us. It’s away of taking control over your finances. Go slow and understandthat you just need to focus a little bit. It’s really not all thatdaunting. It’s just math.”
As Tyrone Jackson always says, if you completed the fourthgrade, you can handle this math. So do yourself a favor and applythat fourth grade education and learn how to invest in the stockmarket. Visit The WealthyInvestor.net and download your free copy ofTrading Stocks for Wealth to begin your journey today.
Back by popular demand, Tyrone Jackson breaks down the language and concepts of the stock market.
Money Flow
Money flow refers to where the big money is. By “big money” Tyrone is referring to insurance companies, big banks, hedge funds, college endowments, who have hundreds of millions of dollars invested in the stock market. While the average individual investor buys about ten to one hundred shares of a certain stock, the big money institutions purchases ten to twenty million shares of that same stock.
Penny Stocks
A penny stock is a stock that costs under $5 per share. The typical thought is, “If I get a thousand shares of the stock at $2, when it goes to $4 I’ll make a lot of money.” The problem with penny stocks is there is not a lot of money flow from the big institutions to these stocks. They are very vulnerable to corruption and the possibility for manipulation is too strong.
Stocks that are above $50 per share tend to attract banks and insurance companies. If you have less than $5,000 to get started invested, you should put your money in the companies that have the highest probably of attracting big investors. We need the big money to push the stock price higher. The purchase of 20 million shares by a big institution can push the price of a stock up.
Our job is to pick stocks that we like and that Wall Street also likes.
Risk
If you are in a penny stock you are in a higher risk category because we don’t know anything about the company and its earnings. If you are invested in a stock like Disney, whose revenues come from hotels, resorts, theme parks (real estate), broadcasting, feature films and merchandising, you are in a lower risk stock. Wall Street is wildly attracted to Disney stock and its price will continue to rise. DOW Jones stocks are generally lower risk.
Allocation
Allocation refers to your money as if it were a pizza pie. What will we do with each slice? For The Wealthy Investor students, most of the slices are allocated to DOW stocks because they are lower risk. This stacks the deck in our favor in terms of long-term investments and risk management.
If we wanted to add a little risk for potential reward, we can allocate some of those slices to stocks in the S&P 500 index. For example, Starbucks is not in the DOW but it is in the S&P 500. Wall Street still really likes Starbucks and the stock is great for selling covered calls.
The advantage of being connected to The Wealthy Investor program is finding out what stocks money is flowing to, getting a financial education, and learning how to manage risk and allocation all at the same time.
Join The Wealthy Investor Community today HERE.
Carrie Keranen is a successful working actress in the Los Angeles area. She grew up in Oak Park, Michigan, studied international business and Japanese at the University of Michigan, backpacked around Europe after college and then bought a one-way ticket to New York City. Despite her studies, Carrie couldn’t keep away from acting. Her career starts with voice over work, then flowed into theater, and eventually television and film. Carrie moved to Los Angeles after checking off the list of the things she wanted to accomplish in New York.
When you are a working actor you have paychecks coming in from many different jobs and it forces you to have a more intimate relationship with your finances. You have to track your payments and keep your W-2’s and 1099’s organized. Sometimes you are up and sometimes you are down so you have to learn to live in the middle. When Carrie found herself in an up period she realized the worst thing she could do was just live off it and watch it go away. There had to be a way to make that money work for her to give her some semblance of control. She finally followed a friend into the Wealthy Investor Program with Tyrone Jackson.
When she first began, Carrie was terrified. But by the end of her first Wealthy Investor class, Carrie felt she understood the basic concepts. This gave her the feeling that she could eventually figure this out.
After Carrie’s first trade, she did not have that “good” feeling. She realized that this meant she needed to check in with her negative feelings about money flowing towards her. In a way, she says that her entire first year has been about the internal journey.
Now, Carrie loves covered calls because they reduce risk. You can guarantee you will have a return on your money every month. The hardest thing for Carrie to wrap her head around was that she could really take the money she was making trading! What has been amazing for her, is actually understanding the concepts well enough to decide for herself whether to trade an In the Money or an Out of the Money covered call. Although, she feels Out of the Money calls are sexier than the safe “grandma” In the Money calls.
Carrie doesn’t consider herself a business person. It makes sense for her to trade companies that she understands, such as Disney (DIS) and Visa (V). Plus, having the community there for her to discuss the concepts as she is learning them is extremely helpful. She also thinks it is important to see what’s possible. Seeing where other people started and where they are now opens up her own realm of possibilities. Now, almost a year after her first class, Carrie achieved her goal of paying her rent with money from the stock market.
During Carrie’s first class she was very tense and nervous. But then she said to herself, “Yes or no? This is either something you want to learn or it’s not something you want to learn. And if it’s something you want to learn - Learn it NOW.”
Carrie realized early on, “This program is not about ‘I’m going to be a millionaire next week.’ This is about how to have continuous, sustainable, predictable wealth every month, out of every year, for the rest of my life and it’s starts where I’m at right now and grows from here. And if I just keep pushing that line back next year, or next year, or next year, then it just means that I’m getting that started next year, or next year, or next year.’
Her advice to you is “Just take the next step. Don’t worry about everything and the whole big picture, just take the next step. Take it day by day. Just do what you can right now. You don’t think it’s going to make a different but it is going to make such a difference. You can’t even conceive of the ways that this is going to open up your mind, your heart, your spirit, your understanding, when you are on the fear side of it. The moment you take that first step, all those doors are going to start to open and it’s such a beautiful thing. Please, please, please do this for yourself.”
So take that step now and download Tyrone Jackson’s free E-Book Trading Stocks for Wealth at TheWealthyInvestor.net.
In the 30's, 40's and 50's, there was no internet. The majority of people didn't even own televisions. This meant that only the very wealthy had access to the stock market and to people who could get them in and out of stocks. Because of the limited information, even those who had access mostly stayed with the names and companies with which they were familiar. The main exceptions were people who actually worked on Wall Street.
In the 1990's the technological revolution began. Internet connection became dominant and leveled the playing field of the stock market. Now everyone has access to Wall Street. Tyrone's favorite website for researching the stock market is yahoo.com/finance. He uses this research tool to look at a company's profile, 5 year chart, top-line revenue, major shareholders and more, all before logging into his brokerage account to actually execute his trades.
Yahoo is great for research but it does not give you strategies, trades, and ideas for actually making money in the market. It also does not explain the language and vocabulary of the stock market, which can make beginners feel intimidated.
Tyrone breaks down stock market terms so that you can speak the money language with fluidity:
Bull Market: refers to the rising of most stocks, the general forward movement of the stock market
Bear Market: refers to the general decline of the stock market
Index: a listing of certain stocks, generally used a measurement of the value of a section of the stock market to determine the overall market's current strength
Examples:
Dow Jones Industrial Average – The top 30 stocks in the US stock market
Standard and Poor’s 500 (S&P 500)- The top 500 stocks in the US stock market
Divergence: happens when the DOW Jones is up but the S&P 500 is down, or vice versa
Allocation: the way an investor divides his/her money into different portfolios and stocks for different purposes
Building a Position: Purchasing shares of a Dow or growth stock and buying more shares when the stock price increases in small increments
Float: The amount of shares in the public domain to be traded on a daily basis
Dividend: As a shareholder, your share of a company's profits distributed generally on a quarterly basis
To continue your financial education, visit WITradeSchool.com!
Some people say, “I would never put my money in the stock market because it’s too risky.” Yes there is risk, but without risk there would be no reward. There are companies in the DOW jones that are less risky because they have proven their revenue - companies like Coca Cola, Disney, Apple etc. In the Wealthy Investor Program we try to balance risk by leaning a little more conservative and having most of our money in DOW stocks.
Today Tyrone talks with someone well versed in risk. Josh Belanger is an option trading specialist and author of the book Fearless Investing With Options. Josh began working at 19 as a pizza delivery boy. He told one of his regular customers about his dreams of becoming a stock broker, and the customer advised him to get a Series 7. While Josh studied to pass the Series 7 exam he worked on the floor of the Chicago Stock Exchange as a runner - the lowest man on the totem pole. After the test, Josh had a career as a stock broker, or financial adviser.
After paying his dues, Josh started to see how the internet and technology was changing the industry. He also realized that he wasn’t really learning to play the game of the stock market. He got out of the finance industry and started trading options aggressively. Now Josh is the founder of www.OptionSIZZLE.com where he publishes free daily investing and trading tips and teaches struggling self directed investors how to become more profitable trading options while reducing risk, creating higher chances of success and generating better returns in any type of financial market.
Having been on the other side, Josh believes that mutual funds are legally stealing everyone's money. The monstrous fees taken by the financial advisors and firms compared to the little amount of money they make you in return is unreasonable. Also, financial advisors are required to operate under so many legal restrictions, that there's not much they are allowed to do to grow your money.
Now trading on his own and helping others to do so, Josh has focused mainly on options trading. In Tyrone’s Wealthy Investor approach, he teaches LEAPS options trading. In a LEAP, the option has a one year expiration date. Josh’s strategy utilizes shorter time frames; his options usually expire in 30 - 50 days. Josh looks more for income generating opportunities instead of focusing on long term investing or day trading.
Josh believes that one of the first things you need to understand is implied volatility. Ideally if you buy an option you want the implied volatility levels to be low. If you buy an option, you want to look to sell it. Your fear about what could happen is greater than what really happens in the market. Typically Josh buys an option and sells another option. He does this to reduce the overall cost and increase the probability of success. This would be considered a spread.
As Tyrone always says, "The Stock Market is a game with a hundred ways to play it." To learn how to build your strategy and get in the game visit WITradeSchool.com.
Tyrone Jackson, The Wealthy Investor, answers the most common questions he is asked about trading and investing:
1) It all seems so complicated, where do I go to actually open my online brokerage account?
Prior to the internet you would need a family relationship to someone at a brokerage account to help guide you through the stock market. The stock market was the playground for the rich because you would have to actually follow your stocks in the newspaper to see if they went up or down. It was hard to get rich if you didn’t have access to the information. Well now we all have access to the information online. We can do our research for free. This means that anyone with $500 - $1000 can go to ETrade.com, TDAmeritrade.com, Fidelity.com, or Schwab.com and open an online brokerage account. Once you fund your account you have access to buying and selling stocks.
However, if you have no financial education you can get yourself into trouble. One of Tyrone Jackson’s first rules is to never buy stocks that are under $20 per share. Those stocks generally don’t have institutional involvement in them. A good rule of thumb is to be in the stocks that the big money is in.
Be humble enough to know that theres a lot of things you won’t know. Don’t be afraid to ask questions.
2) How do I know what stocks to start with?
There are a hundred ways to start investing. The stock market is one game and 100 ways to play it. Simply, start with companies you are familiar with because it will be easier to do research on them. It is also wise to only buy stocks that are in the DOW Jones Industrial Average.
3) Can you explain what a covered call is?
Writing a covered call is essentially buying some shares that you are willing to sell the rights to at a higher price, which is called the strike price. Whether or not the stock reaches that higher price, you get paid for that right to buy it. This type of trade can be made as frequently as every week and it can be made in your IRA and your cash account. It is very versatile. The Wealthy Investor program can teach you to build a whole profile around covered call writing.
Listen to the episode to hear more of Tyrone Jackson's helpful answers.
You will have access to Wall Street for the rest of your life, but you need a financial education to teach you how to utilize it. Start your education today at WITradeSchool.com. Or download the Tyrone Jackson's FREE eBook at TheWealthyInvestor.net.
Tyrone interviews one of his more advanced students, Patrick Giugliano, about his experience trading so far.
Patrick started as an engineer but decided he didn’t want to make a career of it. The medical field spoke to him because he enjoyed helping people. Luckily it is in Dr. Giugliano’s nature to flourish in difficult situations because he chose one of the hardest disciplines of medicine: sleep medicine. Eventually Patrick built a private practice and had a long and successful career. Recently he retired and is happy to make trading his main source of income.
Patrick was attracted to the Wealthy Investor program because Tyrone came from a common background, similar to himself. He also appreciates that Tyrone teaches you to trade like the institutions trade. The institutions, or the big money, refers to the banks, college endowments, insurance companies, and hedge funds that trade a million or more contracts at once. These large trades truly affect the market. By understanding why the institutions trade the way they do, an individual can anticipate moves in the market and ride the coat tails of these companies.
The first trade that Tyrone teaches is covered call writing because it helps to shift your mindset to see what is possible. Patrick says he doesn’t have a favorite type of covered call because he uses the different types of trades to react to what is happening in the market. For example, in a bull market he would use out of the money calls. On a more advanced level, Patrick is attracted to owning LEAPS, or Long-term Equity Anticipation Securities, because of their extrinsic value and because purchasing a longer option gives you the time to be right.
When Tyrone teaches more complex derivatives, which are basically buying longer calls, he teaches his students to buy a lot of time because that call option will go up exponentially as the stock moves up and time becomes kind of like an insurance policy.
Patrick uses compounding by going back and forth between the Delta 30 and the Delta 70. At the end of the cycle he ends up with more contracts than he started with. When he gets to the point where he has doubled his contracts, he then buys a stock like Apple or H&R Block and moves his money out of a trading scenario into a long term investment scenario.
Planting seeds and making investments to plan for the future is very important. Wealth is a feeling first and when you start to see your account balance rising, it gives you more confidence overall.
Patrick’s best trade happened recently. A few weeks ago the stock market went down a record 10,000 points in 5 trading days. Then on one day it dropped almost 1,100 points. Although this sounds bad, there was an opportunity because the big money was buying right back in. Patrick saw that the institutions were bringing the market back up and bought a leap at this moment. On that same day he made $12,000.
Getting a financial education has helped Patrick to create a nest egg for his family and still retire from his job. He will trade for the rest of his life because it's exciting, it keeps his mind going, and it funds his lifestyle.
Patrick’s advice to new traders is this: the most important thing about the Wealthy Investor program is being able to understand what to do if the market is bullish going up, bearish going down, or if its range bound, so that you can make money no matter what happens. The only way to make money on a regular basis is to be methodical. Even the best traders in the world know that they will only be right 19 out of 20 times, so you have to have a plan.
And our Wealthy Investor, Tyrone Jackson, agrees. It’s not about making fast money all the time. We want predictable income.
If you want to participate in advanced trades like Patrick Giugliano, you have to start at the beginning. Download Tyrone Jackson’s cheat sheet Millionaire Secrets to start getting familiar with the language of the stock market. Click HERE to download now.
Stock market beginners often want to know how to get in on the ground level of a stock that is going to rise. They often ask about IPO’s. An IPO is an initial public offering, or a company that is going public for the first time. There’s usually speculation on the Internet and in the news about how this is a great time to get into that stock. Should you own a stock when it first goes public? Tyrone's opinion is that you should never purchase a stock when it first goes public, because a company that is just going public raises money through the sale of stocks and sometimes bonds to expand their business. At that point we don't know anything about their marketing plan and what they are going to do with the money that they raise. This means there is more risk involved with that stock. There is no track record for how much the company is spending and earning. The closest you should ever come to buying an IPO is one year after the company has gone public, because there will be one year of revenue and four quarters of revenue growth as proof.
In this episode, Tyrone Jackson interviews his student Darcy Parsons. Born in Peekskill, Darcy attended school in Buffalo before moving to New York City where she became a producer. She worked on SNL for a few years as segment producer for anything filmed outside of the show. With experience in advertising and producing Darcy eventually moved to Los Angeles and worked in commercials. She opened her own company, Brewster Parsons, which specializes in photo real visual effects, direction, design, and project management.
Darcy had invested in the stock market in the late 90's and lost $10,000. She swore she would never invest in the stock market again. Instead she dappled in real estate investment. But when Darcy met someone who knew Tyrone and recommended his class, she decided it couldn’t hurt to hear his method. She was inspired by The Wealthy Investor program because there was accountability and monthly classes to make sure that the students are current with what is happening in the market. As a creative and a visual person, she enjoys that Tyrone's method simplifies something that is so extremely complex.
Darcy went to the class for 6 months before making her first trade. She made her first trade with Ebay and made $750 on a volatility trade. She made $2,000 her first month and became a believer.
In the Wealthy Investor Program, Tyrone and his students are simultaneously both traders, taking income in off a covered call or volatility trade, and investors who build wealth by building positions on $5 buy signals. Darcy has a few long-term positions in stocks that she uses this technique to build. This basically means that when you buy shares of a stock, you wait for it to go up five dollars to prove that it’s worthy of another round of investing.
Darcy also believes that dividends are hugely important. For example, Darcy owns Macy’s stock, which has dropped, but she is still capturing the income from the dividend. She also believes that this stock is a good long-term “date” and plans to hold onto it for a while.
As a single mother of twins, Darcy is very grateful that they are enthusiastic about the stock market. Her son actually begged to open a trading account, and she opened one for him 3 months ago. Darcy’s children will have this financial education that will affect the rest of their lives. If she had had this education when she was younger living in New York in the 80’s, she says that instead of buying shoes she would have bought Microsoft!
To those who are afraid of losing money, Darcy says that it is not realistic to think you can invest and never lose anything. You can’t control what happens, so you set off with the best intentions, acknowledge that there is some risk and try do things with the lowest risk possible. So you assess what it looks like and go with your gut.
Your gut should be telling you that you deserve to grow your wealth too! Visit TheWealthyInvestor.net to start your financial education today. As Tyrone says, “Stay open and stay positive!”
Zane Mark is a successful musician and conductor. His father was a reed player, playing all the wood wind instruments with the Ellington Band and eventually Broadway. Music stayed in the family as Zane, his wife, and his daughter have all been on broadway. Mr. Mark is well known for co-composing the show Bring in the Noise, Bring in the Funk.
When the money first started coming in and Zane’s musical career started taking off, he bought stock in mutual funds. There was no rhyme or reason to what he bought and he lucked out that it always worked out in his favor. Zane didn’t have a financial education but he knew that if you made $1 a week for 52 weeks and your bills came out to $60, you needed to do something else.
Zane felt that if he stuck his money under the mattress it wasn’t going to be able to keep up with inflation. If he just threw it willy nilly into the stock market, he was begging to lose it all. Just like there needs to be a class on parenthood, there needs to be a class on how to handle your money. So when her Broadway show got in the way of Zane’s wife signing up for Tyrone’s Wealthy Investor class, Zane took the class in her place.
Now with his financial education, Zane feels that he understands what the cost of living is, he can keep up with it, and now with his investments and trades he is able to surpass it. This has enabled him to relax and not worry when the phone doesn’t ring with another musical gig.
Zane generally trades stocks that pay out dividends. He owns Dow components such as Home Depot and American Express. The only non-dow component stock that he owns is Starbucks, and it is only a small part of his portfolio. This year has been much better for him because most of his portfolio is in DOW components. He tries to trade five contracts at once to make the fees worth it. Zane’s favorite trade is a simple covered call.
Mr. Mark's favorite stock used to be McDonald’s but now it is Disney. They have so many things in their wheelhouse it feels like, how could Disney go wrong? They just announced that they are going to split their dividend. He has been investing in Disney for a little over a year.
Want to gain a financial education so that you can relax like Zane Mark?
Visit WITradeSchool.com now. Click here.
Brian DeMars came from a poor family in the Bronx. He became a musician writing and playing jazz/rock fusion music but eventually carried on his father's trade of printing for the direct mail business.
Off of a friend's recommendation, Brian and his wife went to one of Tyrone's Wealthy Investor Seminars. For Brian's first trade, he bought 100 shares of Disney. He wrote an out of the money covered call and he loved the feeling of making money from his first trade! After two months in classes with Tyrone he felt comfortable managing three accounts for himself and his wife. To this day, covered calls are still his favorite trades.
Brian believes that money needs a plan. He sets short term and long term goals for himself. When it comes to fear he says, "Fear is something you have to say to yourself, I can face everything and run or I can face everything and recoup some money." He also has a personal acronymn: TIME - Trades I Must Experience.
Experience these trades for yourself! Visit TheWealthyInvestor.net to start your financial education now!
Randy Hernandez is a successful model and actor who met Tyrone Jackson at an audition for an HBO Television series. He eventually signed up for Tyrone’s class, but began very slowly in the stock market. Randy says he opened his TD Ameritrade account and had money sitting in it for three months before he ever pulled the trigger on a trade. But opening that account was half the battle.
Randy and Tyrone discuss how there is definitely a fear of failure, a fear of unknowing or not being financially educated that stops many of us from taking the leap. Anyone can make money in the stock market; you just have to have the mindset to see how it works. After making that first trade and seeing the money grow in his account, Randy made six figures in his first year of trading.
Randy explains that the “millionaire mindset” isn’t really about having a million dollars in your account. It’s a feeling of freedom that you can have yourself, your family, and your lifestyle. You can have the power to eliminate stress and make money on your own terms. But you have to think of trading as part of your income, part of your daily lifestyle. If you treat it like that you will be responsible about it, not get greedy, and do the necessary research.
One thing that helped Randy get past his fear was Tyrone’s format. He says that Tyrone teaches you in a way that is very safe—he always goes back to the basics no matter what is happening in the market.
To learn these basics and more, check out what Tyrone Jackson has to offer at WITradeschool.com.
Click here for more info.