Most people when you say stock market they come to fear, because they have witnessed too many people going bankrupt in the stock market, and that is true.
97% fail in the market, and 3% succeed in the market.
The reason being, is that the 3% is educated, so all it means is that the educated are taking from the uneducated.
I am going to explain to you about one strategy that pulls consistent profit from the stock market month in and month out.
Lets put this into simple terms.
For example, if you had an investment property you would rent it out right, and you would receive an income monthly.
The same goes for the stock market, but most people don't realise that you can do this.
Yes you can buy stocks and rent them out for a monthly premium.
It's call covered calls, or the simple way is share renting.
So lets see how this strategy works.
Example, if i bought XYZ stock for $15.
00, and the tenant paid you $1.
20 for the month.
You really only paid $13.
80 for that stock.
It means you just bought the stock at a wholesale price.
Now for example, if your stock moved down to $14.
50, do you have a loss? No, your breakeven is $13.
80 because you received that rental premium up front.
The tenant that rented it from us would be panicking, however we don't care, because we already received our monthly premium for that month.
Stocks fluctuate throughout the month, so we can keep on renting them out every month to receive our income.
If we sell it when the stock is down, then we will have physical loss.
But at this point, we don't care where it is because we just keep on renting them out every month.
Now if you take the $1.
20 and divide it by $15.
00, that would give us 8% for the month.
Eye catching isn't it, banks will never pay you that much every month.
To make it even better, you can also put insurance on your shares, so you will have that sleep at night factor.