The
following program offers a structured program for
operating investments as a business. This is particularly
so for the beginning investor and trader.
1. Start with
$500-$1000
2. Turn it over a
minimum of once each week by trading it and its proceeds.
In one year its investment utilization value will
approximate $52,000 or more due to the multiplier effect
of regular trading. In other words although you only used
and put at risk $500-$1000 you would have had the same
effect as if you had actually invested $52,000 in that
one year period. This is possible because of the
liquidity of the stock markets and the multiplier effect
of trading regularly.
3. The effect of
compounding the returns will actually exponentially
increase the power of the investment potential and
returns.
4. Attempt to find
investment opportunities that would make a minimum of 10%
profit each week. This can be accomplished in several
ways. It means that if you invest in one stock only you
must make at least 10% on it in that week. If you
invested in two stocks one must make at least 20% if the
other loses 10%. Alternatively if you invested in three
stocks you can make 10% in two of them while losing 10%
in one of them. This assumes that equal amounts are
invested in each stock which makes following the
calculations easier. At the end of one year your simple
interest returns will average approximately 500%.
Compounded returns will actually be significantly
more.
5. This structured
trading program not only gives the investor in the
markets an easy program to follow but has the advantage
of facilitating a controlled approach to making the
investor understand the principle of utilizing even small
amounts of monies in a way that will be beneficial. It
also forces the investor to continually research for
those opportunities which will allow him to turn the
money over. It ensures that if he intends for the program
to work he must resolve himself to working at investing
as a business and not simply as an investment made
haphazardly now and then. It also forces him to utilize
the established rules developed in the Hannaian system
necessary to maintain a profitable enterprise,
particularly rules like the "Betty Rule" which must be
religiously followed in order to limit losses for the
program to work as designed.
6. Obviously if he
sticks to the program it is possible to expand upon it by
trading even more often if the opportunities arise, and
also utilizing more monies if available.