THREE SIMPLE STEPS
This journey all started when my daughter Jacey, at age 9, kept asking me for money.
I finally got fed up and said in frustration “Why Don't You Get a Job?”
Her response was... “Daddy, I'm only 9... I can't get a job”.
To make a long story short, she asked me what I was doing and if I could teach her.
It did seem strange at the time, but she wanted to learn and I
wanted to spend more time with my little girl.
I wanted to teach her how to make money and not just ask for it...
I wanted her to make her own money.
It took a while to create a simple stock trading strategy that a 9 year old
could understand, something simple, safe, profitable and consistent.
She also needed to know some basic rules of the stock market.
How it worked and why the stock market is important.
Here are ten basic truths about the stock market
I shared with my 9 year old daughter.
#1. Don't make it complicated, keep it simple and easy to understand.
#2. The stock market as we know it today, got its start in 1602. The first stock certificates were sold, door to door with the promise that the company shared the profits, with their investors. These were called dividends and they changed the world!
#3. The price of a company's stock is the public's opinion, the real value is in the cash flow, profit margins and earnings growth, management, and market share, etc.
#4. After the stock market crash in 1929, President FDR formed the S.E.C. Now,
All corporations are required to inform shareholders of everything about the company.
#5. When a company makes money, they share their profits with their shareholders. If you're a shareholder.... you get a Dividend check.
#6. You only have to own the stock 2-3 days to get a Dividend check, not all year.
#7. Stocks only move for one of two reasons...
A Known events and an unknown events.
#8. Stocks prices move up... down... or sideways. Knowing when they are going to move is where our money is made.
#9. Don't be greedy, there's plenty of money to go around.
#10. No one wins all the time, you will have some loses at some point.
I finally got fed up and said in frustration “Why Don't You Get a Job?”
Her response was... “Daddy, I'm only 9... I can't get a job”.
To make a long story short, she asked me what I was doing and if I could teach her.
It did seem strange at the time, but she wanted to learn and I
wanted to spend more time with my little girl.
I wanted to teach her how to make money and not just ask for it...
I wanted her to make her own money.
It took a while to create a simple stock trading strategy that a 9 year old
could understand, something simple, safe, profitable and consistent.
She also needed to know some basic rules of the stock market.
How it worked and why the stock market is important.
Here are ten basic truths about the stock market
I shared with my 9 year old daughter.
#1. Don't make it complicated, keep it simple and easy to understand.
#2. The stock market as we know it today, got its start in 1602. The first stock certificates were sold, door to door with the promise that the company shared the profits, with their investors. These were called dividends and they changed the world!
#3. The price of a company's stock is the public's opinion, the real value is in the cash flow, profit margins and earnings growth, management, and market share, etc.
#4. After the stock market crash in 1929, President FDR formed the S.E.C. Now,
All corporations are required to inform shareholders of everything about the company.
#5. When a company makes money, they share their profits with their shareholders. If you're a shareholder.... you get a Dividend check.
#6. You only have to own the stock 2-3 days to get a Dividend check, not all year.
#7. Stocks only move for one of two reasons...
A Known events and an unknown events.
#8. Stocks prices move up... down... or sideways. Knowing when they are going to move is where our money is made.
#9. Don't be greedy, there's plenty of money to go around.
#10. No one wins all the time, you will have some loses at some point.
Yes, that was a while ago and not much has changed. However,
I have incorporated options into the equation to get higher returns but the basics have stayed the same.
I have incorporated options into the equation to get higher returns but the basics have stayed the same.
|
Don't laugh to much, it was a long time ago and I had to keep her entertained.
|
Click here to download copy
|
| ||