MAKING MONEY AT HOME

May 18th 2015There is much news that can be used for making money. I’m really big into what I call “FORKLIFT” trades. Trading, as compared to investing is done with a short term horizon—be it days or hours—and for cash flow purposes. Investing is for longer term periods of time. The forklift way of thinking is a way to ask important questions. For example, in a warehouse, we have a box that needs to get from the back to the front. Where is the forklift? If there is no forklift, the box (say a certain stock) just sits. We used to call these OMFs, or Other Motivating Factors. A stock split is one forklift, and over the years, I’ve found five times the forklift shows up. These are pretty awesome in that we can look at them, determine how to trade (short term income), and get in on a short term basis. Last week, we traded (An RSVP Trade), on Wednesday with $1,530. We got out Friday at $3,400. This was on Netflix. We’re out but ready to enter again. The company (Netflix NFLX) is supposed to announce on June 9th that it is doing a stock split—but it must have the more authorized shares, so its shareholders are voting. We don’t know if it’s to be a 2:1 split, a 5:1, even a 10:1. They will have enough shares to do a 30:1. I’ll write more later on, as this is very exciting. Let me know if you want more information. I love teaching, and I try to lead by example.

Stock MarketWade Cook