Would you like to supercharge your trading & investment account? When it comes to investing in the stock market most investors simply just buy and hold the parcel of shares that they purchase, hoping for it to appreciate in value in order to make a profit. When you buy a stock and wait for it to appreciate in value you have only one-third of an opportunity of making a profit. This form of investing is becoming obsolete because if the stock decides to go sideways, you will not make a profit or down, you will actually donate back to the markets on a regular basis.
There are ways to stack the odds in your favour. There are ways regardless of market direction or performance you can still make a profit. There is a strategy that has been around since 1973 that many investors don’t know about. It’s an investment strategy that you can generate an income on your stock portfolio. Many investors just buy a parcel of shares and keep them vacant.
What is vacant got to do with shares?
Just think of this strategy like being a landlord for an investment property. The landlord does not leave their property vacant, just waiting for it to appreciate in value, they rent out their property to generate an income. The tenant pays the rent every single month, or you hope they do! This is what we do with this stock strategy. We buy the stock and sell calls options, generating us an income each and every month. We generate an income regardless of the direction of the market. This strategy is known as the Covered Call strategy.
With the covered call strategy, we open our position with a credit, not a debit and we produce an income which is guaranteed. We get paid upfront, straight into our trading account. As a covered call investor, we create the market as opposed to trading it, we create the market in order for speculators to trade, and we purchase our shares at a wholesale rate instead of recommended retail.
Why not get paid rent instantly for your share portfolio, why not rent out your shares every single month or week and generate returns from 3-9% per month which has been the strategies historical average. If you produced a return of 3% per month, that is potentially 36% return per year and it will be much more if you take into account the eighth wonder of the world… Compounding.
Can we protect our shares from adverse affects in the markets?
There are ways to insure your shares because the markets are random, anything can happen. Anything can happen because the markets are manipulated by the ‘Smart Money’. A lot of investors are oblivious to this and trade with 100% risk. I would not be able to sleep at night knowing that I can lose all my money on an investment in an instant. I hear the same old story from investors who say that the insurance will eat into my profits. Yes, it will reduce your profits slightly but wouldn’t you rather have 5% risk or 100%?
Which one would you choose?
I recently released my first book Supercharge Your Trading & Investment Account Using Wyckoff / Volume Spread Analysis and I explain in this book exactly how the Covered Call strategy works. You will have everything you need to know to get you started. You can purchase this eBook now and improve your financial markets knowledge. You will find out:
How you should look at investing – Lifestyle Matrix.
How the markets work.
How, when & why markets go up and down.
What are options and how to generate a monthly income?
How you can use volume spread analysis to assist you in your trading decisions.
If you have questions about this strategy, you can email me email@example.com
Have a great day and constant profits.
Volume Spread Analysis Expert
Author: Supercharge Your Trading & Investment Account Using Wyckoff / Volume Spread Analysis
Have an excellent trading day
Professional Investor and VSA Expert
Author of Supercharge Your Trading & Investment Account Using Wyckoff / Volume Spread Analysis