Archive for the ‘Investment’ Category

Basic Investment Strategies, Part 1: Diversification

Tuesday, February 19th, 2008

I have been promising a part 2 to The Bullhunters Guide eBook. My ideas haven’t come to fruition so far. Instead, I have put together a 12 Part Basic Investment Strategies blog series. It will be posted weekly here in The Bullhunters Guide.

Gold BarsThis blog entry is the first in the series. The series has been designed from the ground up to help you get more actively involved in the world of investing, so that you can get the most out of your investments. Our approach is to take the amateur investor and slowly introduce him or her to the more sophisticated and advanced concepts that are practiced to great profit by the professional traders in the industry. In other words, this is a tutorial in how to become wealthy! The series will be rather long, and each blog entry will concern itself with one particular technique that you can add to your repertoire of investment knowledge and strategies in order to become a stronger player in the stock market. So, just sit back and relax, and try to take this all in. Ready to start maximizing your earning potential? Then, let’s go!

This time, we’re going to get off to a really basic start and discuss the virtues of diversification. Chances are good that you’ve heard the jargon thrown around on a few television dramas from time to time about how so and so was in dire need of “diversifying his portfolio“. Well, that trope had to come from somewhere.

Diversify Or All Your Eggs In One Basket

Diversification is a rather simple concept that simply refers to the idea of “not putting all your eggs in one basket“. Many beginning investors are often tempted to buy a huge number of shares in a single stock, because the initial cost of sales commissions will usually be quite a bit lower than if they had taken that same amount of money and bought just a few shares in a wide number of stocks. Furthermore, they tend to think that without a substantial number of shares in a stock, their payout will never “amount to anything”.

Try and overcome this way of thinking. The upfront costs might be higher, but what will you do if that one stock you put everything in collapses? It’s happened to many people and it can easily happen to you. Avoid this potential by spreading your funds around in a variety of interests, preferably across a number of different industries. This should help to protect you somewhat against market forces that can sometimes capsize a whole industry worth of stocks and leave you with losses in every single stock in your portfolio.

See you next week for part 2 of Basic Investment Strategies.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2008

The Gamblers $18,000 Grand Piano

Monday, November 5th, 2007

I have spoken about many stock market strategies, touching on the DJIA or Dow Jones. We have been over the US stock market and ways to understand how to make money with the correct share strategies. Today I want to talk about one of the outcomes of a successful trade; The Profit and the underlying benefits. In other words: when do you take a profit and where do you put the profits?

Taking Profits When Trading

I haven’t got a more straight answer than this. Decide before you place the trade. How much profit would you be happy to take or make? 20%, 50%, 100%? Then if you reach the target, take it. Cash it in there and then. Don’t hesitate! I will give you a great example of a trade that I didn’t set a profit target on. I bought 90000 options on a stock for 3cents each. That cost me around $2,700. I was happy to take the risk and lose the lot. Yes, hardly a great strategy but the gambler does come out if you don’t plan your trades.

Beware the Gambler

Here’s the strategy I call “The Zero Strategy“. $2,700 of 3 cent shares. The stock went up to over $1.00 and the options became worth around 80cents each. Not bad in 15-16 months. My $2,700 was now $72,000! That’s around 2600% Return On Investment. I didn’t take it though. Why? Well, there were a few reasons. One was that I KNEW the stock would keep going up. And it did. Another 10cents or so.

Down Goes The Stock Market

Then it came down. I’ve still got the stock and it’s worth about $17,000 and still in a pretty good margin. When will I sell it? Probably never! It’s too good a story to tell. It’s priceless! So now, what on earth has this got to do with The Gamblers $18,000 Piano? I only put that in the headline so you’d read this… Just Kidding! I bought some other shares around the same time and here comes the Grand Piano…

The Stock Markets Grand Piano

I bought 2000 shares for $1.59 each. This time there was a plan in place. An ambitious one, but realistic however. A uranium explorer. My friend had 3 Million of these shares and bought them for less than 3 cents. He sold them around 45-50 cents. Work out the profit on that! Absolutely Massive! My plan was to sell these shares at $9.00. They got to $9.06 and I sold them, turning $3,180 into $18,120. Then I proceeded to chip in a bit and buy a Grand Piano for my son who now has won a few competitions and wants to become a Concert Pianist when he grows up.

Where is the price on those shares now? Who cares! The stock market sponsored my Kid and gave me memories to enjoy for years to come. (The shares went on to over $11.00 then dropped very fast to $6.00)

So when do you take your profits? When you have something fun to spend the money with. There are always profits to be made. Just know when to take them home with you.

Sometimes the Bullhunter has to be Bearish.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2007

The Day I Fired My Boss…

Friday, September 7th, 2007

The Day I Fired My Boss!

I posted this letter in the Wealth Creation SuperHighway Forum after achieving a goal of replacing my income through various investment strategies thanks to participating in the Jamie McIntyre Homestudy program. I acheived my financial target 6 weeks short of schedule on the 8th of December 2005.

The only reason it took me nearly 2 years to fire my boss was purely because that’s the time I set for the goal. Had I set a 1 year target, I have no doubt that it would have been acheived in that time ” - Sean Rasmussen July 2006

So here’s the letter I wrote on that day, in it’s entire unedited form:

The Path To Freedom - leaving captivity

Sean Rasmussen - Karratha, Western Australia, Thursday, 8th December 2005

I’m finally there! In the next level.

Today, 8th December 2005 at 7am I walked away from my job a free man. No more shackles from the day to day grind of conforming to the will of society. I’ve replaced my income thanks to Jamie McIntyre (thanks Jamie) and the road is no longer rocky. My life has turned for the better. Big Time.

My new title: Full Time Investor & Life Coach

I can now do what I love to do. Invest during the day and help others achieve the same.

Look up the word Happy in a dictionary and you’ll see a picture of me. Actually, you’ll probably find my photo next to “ecstatic”, “excited” & “over the moon” as well.

Nearly 2 years ago, when I did the Jamie McIntyre homestudy program (the same month as Bill Stacy did his), I set a 2 year retirement target. Retire to do what I want to do, not what I have to do. There’s a big difference. I have been getting up in the morning and going to work because I had to.

Now I’ll be getting up and doing what I want to. Big difference.

My target has been achieved 5 weeks ahead of the deadline, January 15, 2006.

Meanwhile, I’m living my dreams. I’m in the Next Level. I’ve stepped up to the plate and I’m ready! Bring on life. It’s beautiful!

I’ve met some fantastic people over the last 21 months. Jamie McIntyre, Andrew Dimitri, Bill Stacy from Planet Wealth (mate, do you inspire me), Nik Halik, Adam Thomas & John Chapman from Investor Finance, Ian Daley, Roger (my graduate mate from Brisbane), 150+ Graduates that joined 21st Century Academy with me in the last 18 months, numerous speakers at seminars and literally hundreds of new people I’ve met through Jamie McIntyre’s program.

Has this been a fortune cookie of life, or what? Small things make big changes. I nearly didn’t see Jamie’s add in the paper that day in December 2003. I sent away for his free VHS and the rest is history.

Look up the word Happy in a dictionary and you’ll also see a picture of my wife, Cherie.

When she broke the board at the seminar in Fiji, I knew there and then. This is it. We are in the Next Level. Financial freedom is only a matter of time in my own mind. Success is approaching fast in the shape of happiness, freedom, gratitude, love, security, and financial rewards.

I am actively supporting charities. People want to know what I’m doing and want a piece of it. Life is looking pretty great right now, to say the least.

I’m really excited and there are a thousand things I want to do. Now I will be doing so with balance. For nearly 18 months, I have been working in a day job (10 hour days, 13 day fortnights), investing on the stock market, helping people get started with Jamie’s program and pretty much been up to 11-12pm every night with few exceptions.

Most mornings, I’ve got up at 4.30am to walk the dog and be at work on a construction site for a 6am start. 45 degree heat in summer, working in the sun in North West WA. I was nearly crippled or possibly killed by a near miss 6 weeks ago when a 6.75kg scaffold tube was dropped 12meters to the ground, landing within 6 inches of my right shoulder.

In all this time, I’ve watched about 6 movies, read no newspapers, watched maybe 1 hour of news and been 100% committed to the task. I only had $20,000 to start investing with and had no stock market knowledge worth mentioning 2 years ago.

Then I went to Fiji with my wife and 2 boys. That took me to the next level.

Now, I am planning balance in my life. This means evenings off. Lots of time with my family is not only on the cards but happening from today onwards. I’m scheduled to take my family to New Zealand in July 2006 and Hawaii in November 2006, followed by a few more destinations in 2007.

My next Big Holiday will be 4 weeks in France with my family. Don’t know when, but it will have to be soon. The world is too big to be sitting around, waiting for things to happen.

I’d like to share parts of my goal list I wrote out during a Jamie McIntyre homestudy session in January 2004:

• Retire to full time investor by January 15, 2006 - achieved
• Financial protection by 5 May 2005 - achieved
• Financial security by 5 May 2006 - on track
• Financial independence by 5 May 2007
• Financial freedom by 5 May 2008
• Absolute financial freedom by 5 May 2010
• Take my sons to all 7 continents by their 20th birthday – on track
• Travel to one major world destination every year – on track
• Donate 10% of profits to charity – ongoing and being honored
• Establish my own charity for educating children by 2016

There are many more. Some were achieved a lot easier than I thought. Others were possibly a bit ambitious but still workable. The main thing is this:

If I hadn’t written these goals down, I would have lost track and got off target. Today, I would still be at work and heading on a path towards retirement at the age of 65.

My inspiration source is massive. I will be sharing as much of my learning with as many people as I can. Anyone who wants to be a part of this, email me urgently. I’m building a team of 10 people to help me share this with many more people and help them do the same as me and many other 21st Century Academy Graduates. Who doesn’t want to be a Bill Stacy, right now? ( Bill, you’re a legend)

While I was writing this post, I jumped on the phone and joined up as an ongoing monthly sponsor of Greenpeace to add to my list of charities. When I nominated the amount, the response was hugely rewarding! Look. I’m taking action! I’ve been an onlooker for too long. Now I’m taking action.

One piece of advice I can give from all this:

Write down your dreams, Take Action and do it!

It’s all in your mind.

I’ll see you in the next level. Join me there.

Regards
Sean Rasmussen

So that was it. I wrote that testimonial within 1 hour of leaving the workforce forever. At the time I was overwhelmed by the fact that I had actually done it. All the critics, sceptics, cynics… all the people who told me it was a pipedream… they are still back there somewhere at the same job or another one. The beleivers who rewarded me with their support and who listened to me; some are advancing in leaps and bounds. Others are on their way or thinking about it. Life is surely beautiful and must be lived to its potential.

I beleived in Jamie McIntyre and 21st Century Academy. It paid off for me. I decided to make up my own mind and not let anyone else do it for me.

As I write this, I’m at a 21st Century Academy Education For Life seminar on the Gold Coast in Australia. It’s day 1 of 4. I have been to 6 or 7 of these now (it’s a benefit of working close with Jamie). I was listening to Jamie McIntyre inspire the 400+ people attending and I was inspired to jump into my hotel room during the break and post this. I remembered how easily I could have given this whole “wealth thing” a miss… The though scares me.

Beleive in your ability, back yourself in and take action! It’s the only way to find out what is really in store for you in life.

Thanks for reading my story.

Sean Rasmussen
21st Century Academy
Universal Wealth Creation © 2004 - 2007

Stock Market Strategies

Tuesday, July 24th, 2007

Hello fellow Bullhunters

The Bullhunters Guide to the US Stock Market has certainly been an eye opener for me and I think we got more than what we bargained for when Sean wrote this eBook and offered us a free download of it.  Although the information provided us is short and sweet, it is all very useful information which gives us a look behind the scenes at the goings on of the US Stock Market.

Today we will be discussing some other ways that you can make money from the stock market so here is the next excerpt…

Buy and Hold - The Classic Value Strategy

Conservative stock investors like to buy undervalued stocks and hold them until they are fairly valued (or even overvalued).  Many times, these investors concentrate on dividend-paying stocks. 

Buy and hold proponents feel that the market is often irrational in the short-term.  Good stocks can go down; bad stocks can go up.  But in the long run, they believe that the cream rises to the top.  Buy and holders aren’t concerned with the day-to-day fluctuations of their portfolio.  They take their time before buying a stock and by the time they pull the trigger, they’re confident that they’ve made the right decision.  When their stocks suffer substantial losses, they often buy more.  This is called buying on the dips.

By buying on the dips, investors lower their cost basis.  For example, if an investor bought 100 shares of Ford for $10 and then bought another 100 at $9, his basis would be $9.50 per share - ((100*$10)+(100*$9)) / 200.  When the stock hit $11 he would have a profit of $1.50 per share instead of just $1.00 per share.

Aggressive Growth Investing

Not everyone agrees with the buy and hold strategy.  Aggressive investors think that they can maximize their profits by trading more frequently.   They see no reason to hold a stock when they think it is going to go down.  Why not just sell it, and then buy it back when it has bottomed.

Buy and holders think this sort of philosophy is conceited.  They say that frequent traders are trying to outsmart the market which is something that cannot be done on a consistent basis.  Buy and holders also point out that the commissions associated with frequent trading can take a big bite out of profits.  But aggressive investors still say that their way produces better results.

Aggressive vs Conservative Strategies

These two strategies are from one end of the scale to the other.  They speak for themselves.  So whether you want to make a quick profit or be on the conservative side and buy and hold, there are pro and cons for both.  It also depends on if you are building a portfolio or trading for cashflow.  This is something that only you can consider and also be aware of whether these strategies fit into your trading system.  They may or may not and there are other strategies to consider like renting shares for cashflow which is more conservative than day to day trading.

We are not done with the Bullhunters Guide yet.  There is more on the way so keep an eye out until next time.

To Your Success

Angela Recchia
Graduate Support
Universal Wealth Creation © 2004 - 2007

Snowed in with the Academy in Queenstown

Saturday, July 7th, 2007

Bullhunter in Queenstown

I just got back from another fantastic, life-changing experience at Jamie McIntyre’s latest 4 day seminar in Queenstown, New Zealand.  After 7 days of visiting this beautiful place, we might get snowed in and the airport was going to close.  This news wasn’t all that upsetting to me.

I caught a helicopter ride with my wife and 4 friends, including Aussie Rob who retired a few years ago on the back of his successful stock market trading style.  I harnessed the opportunity and when the helicopter landed on a glazier, at 6000 feet (and probably -14 degrees Celsius);  I ceased the moment and filmed myself and Aussie Rob in the snow with an unheralded backdrop of the Southern Alps.  This footage will be available soon for you to view along with some great stuff from the seminar.

Spouses attended for Free

Jamie’s generous gesture to give away the $1,995 ticket to homestudy graduates spouses for Free was immensely popular and the result was clearly noticed.  I now know that with the next Gold Coast seminar 90% sold out and another one slotted in (December 2007) to keep up with the demand, we are going to be in for a fantastic experience.  This is what the Graduates and their spouses took advantage of (at no extra cost to themselves – 21st Century Academy footed the costs):

A free spouse ticket for their partner to attend the 4 day seminar within 12 months of purchasing the homestudy. Normally charged at $1,995. They got this for free.

The 24 month support structure was extended to 60 months (5 years) as long as the graduate attends the seminar within 12 months.

Why is Jamie so generous?

It’s easy for me to see.  I go to most of the seminars and know the guy very well.  The reason 21st Century Academy encourages you to attend the seminar even though you have already paid for the homestudy is this:

The most successful Graduates are the ones who attend the 4 day seminar.  It’s as simple as that!  Action takers are the people who succeed in life.  Bystanders get to ‘stand by’ and watch happy results for others.  Sorry!  No offense meant to anyone reading this but my experience is such:

“Our current results in life will keep repeating, UNLESS we change what we are doing”

Unlimited Growth, Excitement and Gratitude

Every time I attend the 21st Century Academy seminar, I experience massive personal growth.  This was my 8th time in 3 years!  Needless to say, I’m a happy camper.  I see the results and growth of many graduates and have made more friends than I have ever dreamt of in the past.  I state the next paragraph at the risk of sounding cocky.  Please understand, this is not my intention.  As a mentor of mine would say: “I say this, not to impress you, but to impress upon you“:

Since I fired my boss in December 2005, I have personally experienced over 900% increase in monthly income through stock market, property and internet strategies.

I’m the first to admit, I only make approx $5,000 - $6,000 on the stock market every month, but hey, who’s complaining?  Mind you, that’s on an average month and with very little effort.  I, along with thousands of other graduates, owe Jamie McIntyre and 21st Century Academy eternal gratitude.  Our lives have improved our families lives have benefited and our communities will prosper from this.  Untold charities are feeling the effect and even moreso every day as many graduates are honouring their pledge to donate 10% of their investment improvement to charity.

Jamie McIntyre extends this very same opportunity to you

If you want the same result as our Queenstown Grads got, Jamie McIntyre is also offering these bonuses to you.  If you haven’t yet joined Jamie’s homestudy program, you can follow the options below:

Order online here: 21st Century Academy Homestudy Program >>

Phone the office on (08) 9791 6600 (Int +61 8 9791 6600)

Leave a message and we will call you back: 1800 066 090

Fax your orderform to: (08) 6267 8004 (Int +61 8 6267 8004)

To get the Free spouse ticket worth $1,995 and a 5 year support structure, you need to place your order within 21 days of viewing the Free Jamie McIntyre DVD I sent you in the mail.  Talk to Simon, Dean, Cherie or myself at Universal Wealth Creation on (08) 9791 6600

You also have 90 days to invoke your unconditional 100% money back guarantee. Check it out at No Risk.

Have you already attended a 4 day seminar and want another Free ticket to attend? Book Free Ticket Here >>

Have you done the homestudy and haven’t yet attended a 4 day seminar? Book Free Ticket Here >>

See you at the next Seminar. I’m the tall guy with a massive smile on my face.  Come up to me and say G’Day!  You can find my photo by clicking my name in the signature below

Until next time, I wish you Universal Success

Sean Rasmussen
The Bullhunters Stockmarket Guide
Universal Wealth Creation © 2004 - 2007