The wealth wheel: 

facebooktwittergoogle_plusredditpinterestlinkedin

Last fall I attended a financial seminar and learned about the wealth wheel.

The wealth wheel has six segments

1. Education: check out the book, think and grow Rich. It has many old concepts are a lot of good advice, which is still useful; you may be other download the summer off Internet. The things you add to your education can be repeatable.

2.Cash flow:

Options.

Corrected calls.

cash spreads

Diagonals.

Gap models

3. Growth: how to buy good quality items for good prices.

Fair value.

Dividends

4. Big hits:

Run win long.

Cut losses short, stop losing money.

Rule one: don’t lose money.

Rule two : See rule one

5. Assets:

6: variables

Flawed, investment plan: must go up.:

Mutual funds managers invest in growth.

The majority of funds do not outperform the market.

You must learn how to invest with down and sideways strategies to reach your financial goals.

Follow the advice and even the worst investor can make 25%

Self-directed IRAs is how you can usually 401(k) to invest

Fundamental strategies:

The more you can read signs, the more confident you feel in investing.

Triple top on charts means stock is about to drop.

A good stock is has a better chance for growth.

A good stock is less likely to react to bad news because is less volatile.

Bad stocks are difficult to trade.

You take out the emotion and look strictly at the numbers to make sure it is a sound investment.

Other notes:

  • Valuation rates:
  • P/D: means price over all means. Price divided by earnings
  • T TM: price to sales. Price divided by revenue.
  • Price to tree, cash flow: price divided by cash flow per share.
  • Each three months, companies have to release their earnings statements.
  • Investors want the PE trades as low as possible.
  • TTM: means trading during a 12 month cycle.
  • When looking at the check marks, think of them in these categories. Company is like the house; industry is like the neighborhood; SPnP 500 is like the city.
  • Price for sales: buy as low as possible. Red means bad green means good.
  • Growth rates: as high as possible.
  • MR Q: means most recent quarter.
  • CPS: means earning per share earnings from stock.
  • Surprises and estimates: you want as high as possible.
  • Number of analysts: at the bottom of the page are a number of analysts that specifically follow certain companies. For example, Apple has 31 and was watching it. This is a popular number for high volume companies. Some companies are so small they may only have one analyst. The more analysts assigned to a company, the more promise that company has to offer.

Have something to add to the list, please do so in the comment section of this blog.

 

This entry was posted in The Things I've Recently Learned and tagged , . Bookmark the permalink.

Comments are closed.