An Interesting Approach To The Stock Market
In March of 1996 Owen O?Malley travelled half way around the globe from a small remote part of Donegal, Ireland to the Hilton Hotel in Kona, Hawaii to spend time with and attend a course designed and delivered by some of the most successful Investors and Traders on the face of the planet at that time.
For six long days twenty four different millionaires and billionaires compressed their decades of knowledge and experience into days. Some of the individuals that designed and delivered the course are well known in the investment world such as Sir John Templeton, Peter Lynch, Beardstown Ladies and Matt Seto to name but a few that graced the seminar stage.
Owen O?Malley then returned to Ireland to teach and share that knowledge and experience with his fellow countrymen and women by establishing investment clubs and creating investment seminars.
The orgainsation that was started in Ireland 6 years ago now has 6,000 members in 12 countries in 4 continents that have collectively invested $10M over and now invest $500,000 per month.
T.I.C.N. – The Investment Club Network have an interesting and incredibly successful approach to the stock market that they would like to share with you the reader.
Psychology of a Successful Investor.
1. ?Master your emotions and you will master the Stock Market?
This is a profound principle that is the corner stone to success and is as essential to success as breathing is to life.
We could send you, the reader in a time machine to discover the one company that will outperform all other companies in the World over the next 5 years. You could return with great excitement to instruct us to invest in that company today and tell us that we will be guarenteed 1000% price appreciation 5 years from now.
Without exception all companies fluctuate wildly in share price with the average share price movement of 50% to ?50% in any 52 week time period including the best performing company that you discovered in your time machine.
Even though share price fluctuation is part of the real world of the emotional roller coaster that investors experience they tend to forget that when they are in the game of investing and trading. Consequently errors of judgment influenced by emotions through time lead to ultimate fiscal failure in the stock market.
It is those that remember that all shares fluctuate and choose not to let this interfere with their decision making process that conquer the stock market. Emotional Mastery is the cause Financial Mastery is the effect.
2. Belief in yourself.
?What you believe you will achieve?
Belief in oneself leads to taking action which leads to results which leads to more belief which leads to more action which leads to even better results and so the positive reinforcement loop continues ever upwards.
3. Develop a Positive attitude.
It?s as simple as this, positive people get positive results, negative people get negative results so you decide what attitude that you choose to take with you on your journey through life.
4. Develop an attitude of gratitude.
Regret of the past and fear of the future steals your present. No matter how badly off you feel you are right now you are properly better off than more than 90% of the world?s population. Once you choose to accept that there is nothing wrong with where you are right now it will give you the necessary platform to spring forward in life without regret of the past holding you back and fear of the future stopping you going forward. To all those people that you feel have hurt you in the past in light and love let them go and get on with your short life taking absolute and ultimate responsibility for the choices you take in life.
5. Who are the players in the fiscal world?
I challenge you to find out who invented money, why was it invented, when was it invented and who has controlled the flow of money since it was invented. What agenda do the banks, the brokers and the market makers have,and how to you as an invester fit within this agenda. Are you able to think like them and use this insight to outperform those that control the market place that you find yourself in?
6. Appreciate True Value
When you evaluate a company for the purpose of investment the company will have the book value share price which is the true value of the company divided by the number of shares. On the other hand there is the often wildly inflated actual market share value. Do you know how to find out and appreciate the true value of a company? If you don?t know true value when now would be a good time to find out?
7. Take Action
One of the most important actions to take when you learn something new is to apply the knowledge gained. One of the greatest myths out there is that knowledge is power. In this new so called ?Information Age? that we live in knowledge is not power instead it is the application of knowledge that is true power. So go forth and apply yourself.
Today you can open an online investment account, today you can simulate trades with a pretend $100,000 portfolio and today for as little a $500 you can fund and start trading a real online account.
The Investment Club Network.
The Investment Club Network truly have an interesting approach to investing in the stock market.
They combine the power of clarity that comes from knowledge based decisions with an ability to generate an income regardless of the direction of the market or the companies that they invest in.
The systematic unemotional approach taken to investing is the basis of success with TICN.
The 3 steps of the systematic approach are as follows:
1. Fundamental analysis
2. Technical analysis
3. Income generating strategies.
1. Fundamental Analysis
There are ~ 400,000 companies available to invest in the world and ~ 30,000 in the US Market. The Investment Club Network purchase professional research on the top 7,500 companies traded in the US stock market. TICN then run 21 different computer filters to produce a batch of 2 ? 300 of the best companies. Then a quantative scoring system is applied to ensure that only a small batch of 20 ? 30 quality companies that are close to the right time to invest in are left to choose from.
2. Technical Analysis
Professional Technical analysis is then applied to the remaining batch of 20 ? 30 companies to help crystalise the decision making process and further refine the investment entry points.
3. Strategies
TICN teach 20 different income producing strategies that yield a consistant monthly return on investment regardless of the direction of the shares or the market.
One such strategy is the Covered Call strategy that is employed to generate monthly and bi-monthly income from the portfolio of shares.
Covered Call Strategy
Once a company is Fundamentally sound and is Technically right to purchase then the strategy of Covered Calls can be applied as follows provided that company trades options.
The approach taken is that the shares are like owning property and that by consistant collection of rent (covered call income) you will eventually recoup the cost of your initial purchase. The average house mortgage would take 30 years to pay back if you are solely relying on your tenants rent to pay the mortgage repayments in full. The good news is that applying the covered call strategy you can cover your initial purchase price of your shares in a shorter time frame of anywhere between 12 to 24 months. In fact using some of the advanced covered call strategies that TICN teach in some cases you can cover the intial purchase price in as little as 6 months.
Just as in property investments once you own the property in full you can continue to collect rent thus enabling one to purchase more property and collect more rent and so on. One can do exactly the same with shares in the stock market over a much shorter time frame.
To find out more about this ?Interesting Approach to the Stock Market? you can contact Cyril Crowe on [email protected] or 353 86 829 83 08 . In the course of the next few issues we will explain in detail the strategies employed by the TICN club members. (www.ticn.com)
Written By : Cyril Crowe
Recent Comments