NEW YEAR, NEW RECORDS! 2022 STARTS WITH A BANG! HERE IS YOUR NEXT MOVE.

The S&P500 (SPY) had a solid finish to 2021. It rallied on Monday into all-time highs and set the highest point on Thursday, 30 Dec 21. On Monday, 3 Jan 22, the market opened positively, ending the day higher and within 1 point of yet another record.

The cheerful open to the year indicates no re-test of the newfound support (former resistance) around the 471 area. Instead, everything points to the trend resuming to the upside into uncharted territory. It looks like it will take much more than the Fed printing money, another pandemic, or a new crisis. Markets seem unstoppable.

Many new investors are afraid of jumping in at the wrong time, which is understandable. However, the markets are breaking record after record and showing no signs of slowing down.

AMAZON (AMZN) keeps growing year after year. Your account can too!

What to do next?

There are many ways to skin a cat. It’s just a saying people. It’s not literally. However, we are never short of strategies and possibilities as traders and investors.

A. Test the Waters

If you are brand new to investing, I suggest NOT jumping with both feet. Test the waters first. The idea here is to invest half of what you have available. There are two reasons for that:

          1. By investing in small portions, you are not risking all of your capital, but at the same time, if the markets keep pushing higher, you are participating and adding gains to your portfolio.

          2. With the same token of investing small portions, if the market decides to pull back and take a breather, you will have capital free to be deployed as you wish and at a discount. Who doesn’t like discounts? I do!

B. Learn to Sell

A strategy I use is selling options. I like to sell options on volatile stocks and also on support areas. In my case, the idea is NOT to get assigned the shares. Instead, collect premiums with each sell, rinse and repeat.

If you want to own shares on a specific stock, you sell the options at the price you are comfortable buying it. Keep in mind that each contract holds 100 shares when you sell options.

For example, You don’t mind owning AT&T (T) shares at a $20 strike price. Therefore, you will sell the $20 put option.

With Fundrise you can become a digital landlord anywhere in the United States, without the hassle.

What happens?

1. Next, multiply the strike price by 100 shares, which will give you the amount needed in cash. To sell this put option, you need to have in your account $2,000 available (not invested) per each contract you plan on selling. This cash will be used as collateral if you get assigned, and this will be the money used to buy those shares. The same thing happens with each option you sell regardless of the stock.

2. Once the money is available and ready to go, one of these two possibilities will occur:

          – The stock price falls under the option strike price, and you get assigned those shares. In this case, you will buy 100 shares at $20.

          – The stock price remains above the option strike price, and the option expires worthless. Therefore, you keep the premium while releasing the cash held as collateral.

Keep in mind this is an investing mindset. We are not here to jump in and out daily or intra-day. If that is your mindset, you are a trader and not an investor.

STARBUCKS (SBUX) can pay for your coffee with their profits. What are you waiting for?

TRADERS

As a trader, you need momentum. So I don’t recommend any newbie to trade first. Instead, start with the basic easy steps of investing, then move up the latter.

If you are a little more experience, then look for weekly breakouts. For example, during the weekend, change the setting on your chart to weekly. Then, set an alert at the high of the week that just closed. If you are doing it during the week, ensure to set the alert at the high of last week.

Once the alert goes off that a break out of that high occurred, you can take a position with shares, you can sell puts, or you can buy calls. The choice is yours.

Ensure to preset your stop-loss price (area) and your targets.

Are you going to sell all of it once you hit an area?

Are you selling half and riding the other half for more profits?

You can also sell 1/3 of the position at target #1 (T1), sell another 1/3 at a higher target #2 (T2), and let the last 1/3 ride as high as possible for maximum profits.

As I said, there are many ways to skin a cat. First, you need to figure out which strategy makes more sense. Not all methods work for everyone. Please choose the one you like most and become a master at it. Once you become a master, you start adding to your toolbox with new strategies in a few years. Join groups and share your experiences. Also, listen to others and learn from their mistakes.

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates. You can also reach me here with any questions.

From the comfort of your home, invest anywhere in the united states with Fundrise.

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

START SOLVING YOUR MONEY PROBLEMS TODAY

“The distance between your dreams and reality is called action” IG @Corporatebytes

DISCLAIMER: Please read our disclosure policy here. Links in this post may contain affiliate links and as an Amazon Associate, I earn from qualifying purchases.

I’m going to start this article by asking several questions.

1. Do you think that, earning more money will solve your money problems?

2. Do you think higher education will solve your money problems?

3. Do high paying jobs solve money problems?

But the real question is, What does solve money problems?

Making more money does not solve your money problems. This is due to individuals tend to find new things to buy with the new money they just received. Many times, this is bought on credit which adds monthly payments to your debts.

Higher education does not solve your money problems either. We have a lot of bright individuals with Masters and Ph.D.’s that earn a lot of money but are deeply in debt.

A higher paying job does not solve your money problems. I see it all the time.

Tell me, how many pay increases have you received in your working life? How many bonuses have you received?

Are you out of bad debt yet? Ask yourself, why?

Truth is, we already know where or on what we want to spend that money before we even receive it. The reason why too many individuals cannot get ahead of the game is that they lack the real answer to the big question, Financial Education / Financial IQ.

One thing is having higher education, high paying jobs or making a lot of money; and a whole different thing to know what to do with that money to become financially free.

In order to increase your Financial IQ, Robert T. Kiyosaki wrote a book to help us all. The book “Increase your Financial IQ – Get smarter with your money” goes in-depth to explain what real Financial education is and how you can use it to get ahead of the game.

Don’t buy luxuries until you’ve built the assets to afford them. He doesn’t agree with the mentality of living below your means. He prefers to build and acquire assets that pay for the lifestyle you want. Don’t pay for luxuries out of pocket. Pay for assets out of pocket and they will buy the luxuries that you want.

Assets come in many forms. They are things that will bring money into your pockets, whether you were working for it or not.

The most common assets are paper assets. Those come in the form of investing in stocks in the stock market. Mutual funds and bonds are also in this category.

Another type of asset is Real Estate. Whether you are flipping houses or owning rental properties (house for rent or apartment for rent).

Owning your own business. Or learning how to make money online by setting up a website, blog, etc.

And finally, the less common known assets of commodities. Include owning oil, gold, silver.

What do you do?

If you want to learn how to make money, I highly encourage you to decide which one of the previous types of assets you are more interested in. Buy a few books on the topic or take some classes. Learn the inside and out of how they work. Set yourself for success.

Instead of watching TV, learn new skills and begin managing your finances.

Useful new skills for this century are podcasting, affiliate marketing, app development, furniture making, graphic design, just to name a few.

Manage your finances by learning about taxes (“Tax-Free Wealth“) or be willing to pay up for a very well educated accountant.

Start your own business. It could be inside a building or an online business. You want a proven system, then check out Timothy Ferriss’s book (“The 4-hour workweek“). A great example of his business with tips and tricks for getting what you need for less.

Learn to invest (“The Intelligent Investor“) or know that you will be paying fees and expenses to people that are as intelligent as you or not even as much.

Review and organize your finances using money calculators, build your own or be willing to pay someone to build one for you. By the way, that someone will be me in the near future. Don’t worry, it won’t be expensive.

Don’t be afraid of using coupons to buy items at lower prices. It is a great way to save money that you can put to better use by investing it and growing your account.

Don’t throw your hard-earned money in the grave or online banking. What I mean by that is, don’t leave your money in a savings account or online bank account that pays anywhere from 0.5%-2.50%. Remember that inflation increases on average 3.5% per year. You need to make investments that pay at least 3.5% just to keep up with inflation and not lose your buying power.

There are plenty of assets that can pay you 3.5% and more. Investing is not risky. Risky is depending on one source of income (aka your job), and losing it (getting fired) and no second or third sources of income to help you mitigate the hit. Now, THAT! is risky.

Begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates.

If you have any questions, you can reach me at questions@road-to-wealth.com