The Lion of Wall Street
The mission of the blog is to present investors with solid investment strategies that generate passive income.
Articles
Create Your Perfect Day
2010-11-30 04:27:00
The time has come to ignore all of the self proclaimed self-help gurus and forget about writing goals. Your life is not composed of future events that have yet to happen. During an experiment, test subjects were hooked up to brain scans and asked to look at an apple so the scientist could see which areas of the brain were affected. Then they were asked to close their eyes and think about the apple. To the scientists amazement the same areas of the brain were affected. This caused the scientist to question how we experience the world - is it with our eyes or is it with our brain. Past and future events do not exist in the brain - your brain only lives in the "now" of existence. You can relive past events, bring people back to life and manifest your perfect life if you can learn to experience these moments right now. Your life is really just a series of moments that happen to you everyday. Define your destiny by breaking your life down into daily experiences. Ask yourself this questi
2010-11-30 04:27:00
The time has come to ignore all of the self proclaimed self-help gurus and forget about writing goals. Your life is not composed of future events that have yet to happen. During an experiment, test subjects were hooked up to brain scans and asked to look at an apple so the scientist could see which areas of the brain were affected. Then they were asked to close their eyes and think about the apple. To the scientists amazement the same areas of the brain were affected. This caused the scientist to question how we experience the world - is it with our eyes or is it with our brain. Past and future events do not exist in the brain - your brain only lives in the "now" of existence. You can relive past events, bring people back to life and manifest your perfect life if you can learn to experience these moments right now. Your life is really just a series of moments that happen to you everyday. Define your destiny by breaking your life down into daily experiences. Ask yourself this questi
When Should I Sell?
2010-11-26 03:55:00
The reason we invest in stocks is to make money. The bottom line: if you aren't selling then you're NOT making money. You should be as excited to sell your stock positions as you were to buy them in the first place. I recommend that you sell your stock positions incrementally every time the current stock price appreciates 10% to 20%. Don't sell everything - just take your profit off the table. Example BUY: 100 shares of Company X @ $10 per share = $1,000 Stock Price goes up to $12 per share CURRENT POSITION: 100 Shares of Company X @ $12 per share = $1,200 $200 ÷ $1,000 = 20% Gain SELL: 20 shares of Company X @ $12 per share = $240 NEW POSITION: 90 shares of Company X @ $12 per share = $960 + $240 in cash The beauty of cash is that if for some reason the stock goes back down in price your cash position won't go back down with it. Just compare the stock price appreciation percentage gains to the interest rate you could get putting your money into a savings account or
2010-11-26 03:55:00
The reason we invest in stocks is to make money. The bottom line: if you aren't selling then you're NOT making money. You should be as excited to sell your stock positions as you were to buy them in the first place. I recommend that you sell your stock positions incrementally every time the current stock price appreciates 10% to 20%. Don't sell everything - just take your profit off the table. Example BUY: 100 shares of Company X @ $10 per share = $1,000 Stock Price goes up to $12 per share CURRENT POSITION: 100 Shares of Company X @ $12 per share = $1,200 $200 ÷ $1,000 = 20% Gain SELL: 20 shares of Company X @ $12 per share = $240 NEW POSITION: 90 shares of Company X @ $12 per share = $960 + $240 in cash The beauty of cash is that if for some reason the stock goes back down in price your cash position won't go back down with it. Just compare the stock price appreciation percentage gains to the interest rate you could get putting your money into a savings account or
How Do I Invest In Stocks?
2010-11-23 03:57:00
4 Easy Steps to Investing You start by opening an investment account or an individual retirement account (better know as an IRA) with a reputable broker. (Personally, I use Zecco because of their low trading fees) Deposit money into your account. (Zecco allows you to connect your trading account to your banking account) Do your homework. (Remember, investing in stocks is like betting on horses - the goal is to bet on the fastest horse in the race) Issue a "Buy" order to your broker. (Enter the stock ticker symbol, the number of shares you want to buy and the price you are willing to pay for them) Congratulations! Now you own a piece of the corporate ladder. Click on the following link to setup an investment account or an individual retirement account with Zecco: Zecco Trading: Get $4.50 Stock TradesInvest the smart way with Zecco Trading. Stock trades cost just $4.50. Get 10 free trades per month with a $25,000 balance or 25 trades/month. No account minimums or inactivity fees
2010-11-23 03:57:00
4 Easy Steps to Investing You start by opening an investment account or an individual retirement account (better know as an IRA) with a reputable broker. (Personally, I use Zecco because of their low trading fees) Deposit money into your account. (Zecco allows you to connect your trading account to your banking account) Do your homework. (Remember, investing in stocks is like betting on horses - the goal is to bet on the fastest horse in the race) Issue a "Buy" order to your broker. (Enter the stock ticker symbol, the number of shares you want to buy and the price you are willing to pay for them) Congratulations! Now you own a piece of the corporate ladder. Click on the following link to setup an investment account or an individual retirement account with Zecco: Zecco Trading: Get $4.50 Stock TradesInvest the smart way with Zecco Trading. Stock trades cost just $4.50. Get 10 free trades per month with a $25,000 balance or 25 trades/month. No account minimums or inactivity fees
Money Is Power...But What Is Power?
2010-11-19 04:24:00
Money is really an illusion. The value of money is based solely on the psychology of individual buy or sell exchanges. In other words, money is only worth what we are willing to exchange it for in the form of goods or services. Although not a financial book, Robert Greene's The 48 Laws of Power will teach you how our our psychological need to acquire power effects all of our interactions with other human beings - be they in the business, political or religious arena. From an investment point of view, markets are driven up and down by base human emotions - primarily greed and fear. Learning the power lessons presented in this book will has made me a better investor and I know it can do the same for you. Click on either of the following link to purchase Robert Greene's The 48 Laws of Power in either book form or in an abridged for on CD. Personally, I own both the book and the book-on-CD to listen to while I drive.
2010-11-19 04:24:00
Money is really an illusion. The value of money is based solely on the psychology of individual buy or sell exchanges. In other words, money is only worth what we are willing to exchange it for in the form of goods or services. Although not a financial book, Robert Greene's The 48 Laws of Power will teach you how our our psychological need to acquire power effects all of our interactions with other human beings - be they in the business, political or religious arena. From an investment point of view, markets are driven up and down by base human emotions - primarily greed and fear. Learning the power lessons presented in this book will has made me a better investor and I know it can do the same for you. Click on either of the following link to purchase Robert Greene's The 48 Laws of Power in either book form or in an abridged for on CD. Personally, I own both the book and the book-on-CD to listen to while I drive.
What Does A Share of Stock Represent?
2010-11-16 04:00:00
Another word for corporate stock is "Equities". Shares of stock represent fractional ownership of the shared equity of the company - also known as the shareholder's equity. Equity = Assets - Liabilities We all understand this concept instinctively when it comes to owning a house. We buy a house for let's say $100,000 with a mortgage from a bank. At this point the there is no equity in the house at all. $100,000 Asset (the house) - $100,000 Liability (the mortgage) = $0 in Equity As the years go by, as the house appreciates in value and we pay down the mortgage, the equity of the house begins to grow. $150,000 Asset (the house) - $80,000 Liability (the mortgage) = $70,000 in Equity However, keep in mind that the $150,000 asset value of the house is only the potential value. The real value of the house is only worth what someone else is willing to pay us for it. Your house is NOT actually an asset until you sell it. Company stock works exactly the same way. If houses s
2010-11-16 04:00:00
Another word for corporate stock is "Equities". Shares of stock represent fractional ownership of the shared equity of the company - also known as the shareholder's equity. Equity = Assets - Liabilities We all understand this concept instinctively when it comes to owning a house. We buy a house for let's say $100,000 with a mortgage from a bank. At this point the there is no equity in the house at all. $100,000 Asset (the house) - $100,000 Liability (the mortgage) = $0 in Equity As the years go by, as the house appreciates in value and we pay down the mortgage, the equity of the house begins to grow. $150,000 Asset (the house) - $80,000 Liability (the mortgage) = $70,000 in Equity However, keep in mind that the $150,000 asset value of the house is only the potential value. The real value of the house is only worth what someone else is willing to pay us for it. Your house is NOT actually an asset until you sell it. Company stock works exactly the same way. If houses s
How Much Money Do I Need?
2010-11-13 05:55:00
You can start investing in the stock market with any amount with a mutual or index fund which are basically just collections of stocks, bonds and cash. Read the fund prospectus to see what corporate stocks the fund is investing in and ask yourself if they are companies you would invest in on an individual basis. If yes, then open an investment or retirement account and start depositing what you can. If no, move on to the next fund. The minimum amount I would say you would need to start investing in individual stocks is $2,500. That breaks down to a diversified portfolio of 5 individual stocks in different sectors at $500 per stock. This is the minimum amount - you will need to continue to add to these 5 positions with additional funds. Sectors: Aerospace Automobiles Consumer Goods Defense Contractors Financial Food and Beverage Health Care Housing Industrials Metals and Minerals Oil and Gas Paper and Chemicals Retail Services Technology Transports Utilities Individu
2010-11-13 05:55:00
You can start investing in the stock market with any amount with a mutual or index fund which are basically just collections of stocks, bonds and cash. Read the fund prospectus to see what corporate stocks the fund is investing in and ask yourself if they are companies you would invest in on an individual basis. If yes, then open an investment or retirement account and start depositing what you can. If no, move on to the next fund. The minimum amount I would say you would need to start investing in individual stocks is $2,500. That breaks down to a diversified portfolio of 5 individual stocks in different sectors at $500 per stock. This is the minimum amount - you will need to continue to add to these 5 positions with additional funds. Sectors: Aerospace Automobiles Consumer Goods Defense Contractors Financial Food and Beverage Health Care Housing Industrials Metals and Minerals Oil and Gas Paper and Chemicals Retail Services Technology Transports Utilities Individu
But I Don't Have Any Money To Invest With...
2010-11-11 04:00:00
This is the number reason I hear from people on why they can't invest (followed closely by the number two reason: I don't have any time). Here are 3 solutions: Set aside a small amount from your paycheck - start with 1% and get used to living on the other 99%. After you do go up to 2%, 3%, 4% and so on. Get a part-time job - any income you make from this job will be used exclusively for your investment or retirement account. Find customers for advertisers - start a website or blog to review and promote the products and services of other companies. This is a win-win-win for all the people involved: the customer find a product or service they are looking for, you get paid for connecting the customer with the company selling the product or service and the company gets a brand new customer. Advertising and investing in the stock market are very similar to one another. Both disciplines allow you to profit from the earnings of good companies. I am in the process of writing a special re
2010-11-11 04:00:00
This is the number reason I hear from people on why they can't invest (followed closely by the number two reason: I don't have any time). Here are 3 solutions: Set aside a small amount from your paycheck - start with 1% and get used to living on the other 99%. After you do go up to 2%, 3%, 4% and so on. Get a part-time job - any income you make from this job will be used exclusively for your investment or retirement account. Find customers for advertisers - start a website or blog to review and promote the products and services of other companies. This is a win-win-win for all the people involved: the customer find a product or service they are looking for, you get paid for connecting the customer with the company selling the product or service and the company gets a brand new customer. Advertising and investing in the stock market are very similar to one another. Both disciplines allow you to profit from the earnings of good companies. I am in the process of writing a special re
How Long Will It Take to Double My Money?
2010-11-06 05:23:00
On Wall Street, we have a simple calculation we use to estimate how long it will take to double our money using the power of compounding interest. If you divide the interest rate, dividend yield or earnings growth percentage that your money is earning by 72 that will tell you how many years it will take you to turn one dollar into two dollars. Example 1 72 ÷ 10% (Interest, Yield or Earnings Growth) = 7.2 Years to Double Your Money You can also use this calculation to determine an interest rate, dividend yield or growth percentage you will need to double your by dividing the number of years you would like it to take by 72. Example 2 72 ÷ 5 (years to double) = 14.4% Interest Rate, Dividend Yield or Earnings Growth Percentage to Double Your Money in 5 Years
2010-11-06 05:23:00
On Wall Street, we have a simple calculation we use to estimate how long it will take to double our money using the power of compounding interest. If you divide the interest rate, dividend yield or earnings growth percentage that your money is earning by 72 that will tell you how many years it will take you to turn one dollar into two dollars. Example 1 72 ÷ 10% (Interest, Yield or Earnings Growth) = 7.2 Years to Double Your Money You can also use this calculation to determine an interest rate, dividend yield or growth percentage you will need to double your by dividing the number of years you would like it to take by 72. Example 2 72 ÷ 5 (years to double) = 14.4% Interest Rate, Dividend Yield or Earnings Growth Percentage to Double Your Money in 5 Years
What is this "Dow" thingy...and why should I care?
2010-10-23 07:39:00
Every news program I watch mentions the price fluctuation of the Dow Jones Industrial Average ("The Dow" for short) during their broadcast on the current state of the economy. However, only about 1 person in 10 that I talk to even understand what the Dow is. The Dow is a collection of the top 30 companies that Dow Jones & Company feel best expresses the health of the U.S. economy. The 30 stocks that currently make up the Dow are 3M, Alcoa, American Express, AT&T, Bank of America, Boeing, Caterpillar, Chevron, Cisco, Coca-Cola, Dupont, Exxon-Mobil, General Electric, Hewlett-Packard, Home Depot, Intel, IBM, Johnson & Johnson, JP Morgan Chase, Kraft Foods, McDonald's, Merck, Microsoft, Pfizer, Procter & Gamble, Travelers, United Technologies, Verizon, Wal-Mart & Walt Disney. The Dow Jones Industrial Average basically adds the daily share price of each of these stocks and divides the number 30. The Dow average fluctuates up and down as each of
2010-10-23 07:39:00
Every news program I watch mentions the price fluctuation of the Dow Jones Industrial Average ("The Dow" for short) during their broadcast on the current state of the economy. However, only about 1 person in 10 that I talk to even understand what the Dow is. The Dow is a collection of the top 30 companies that Dow Jones & Company feel best expresses the health of the U.S. economy. The 30 stocks that currently make up the Dow are 3M, Alcoa, American Express, AT&T, Bank of America, Boeing, Caterpillar, Chevron, Cisco, Coca-Cola, Dupont, Exxon-Mobil, General Electric, Hewlett-Packard, Home Depot, Intel, IBM, Johnson & Johnson, JP Morgan Chase, Kraft Foods, McDonald's, Merck, Microsoft, Pfizer, Procter & Gamble, Travelers, United Technologies, Verizon, Wal-Mart & Walt Disney. The Dow Jones Industrial Average basically adds the daily share price of each of these stocks and divides the number 30. The Dow average fluctuates up and down as each of
Wall Street: This Week
2010-10-22 16:00:00
Lion's Take: The market is still in the throws of a slow recovery from the historical lows in the spring of 2008. Although I believe that the market is a bit overbought right at the moment it is still a good time to buy - provided that you scale into a stock or fund incrementally. I am predicting a slight pullback (between 3% to 5%) from the current levels for the Dow and S&P 500.
2010-10-22 16:00:00
Lion's Take: The market is still in the throws of a slow recovery from the historical lows in the spring of 2008. Although I believe that the market is a bit overbought right at the moment it is still a good time to buy - provided that you scale into a stock or fund incrementally. I am predicting a slight pullback (between 3% to 5%) from the current levels for the Dow and S&P 500.