FIVE- TO 60-MINUTE PRECIPITATION FREQUENCY FOR THE EASTERN …
The 60 Minute - Knowledge Source
Transcript of The 60 Minute - Knowledge Source
G E O R G E F O K A S
Discover how I stumbled upon a unique money machine system that enabled me to live the life of
my dreams and ditch the 9 to 5 rat race.
The 60 Minute Cashflow Investor
The 60 Minute Cashflow Investor© 2020 Fokas Beyond – George Fokas
Published by Fokas Beyond
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Table of Contents
Introduction 4The Stock Market – A Brief History 6Where It All Began 7The First Bond Market 8Profit On The Share market is ‘Goblin Treasure’ 10Did Someone Say Bubble? 13The Tulip Bubble 15The South Sea Bubble 17Florida Real Estate 19The Great Depression of 1929 21The Crash of 1987 22The 1997 Asian Crisis 24The Dot Com Crash of 2000 to 2002 26The Housing Bubble And Crash 2007 - 2009 27Is The Stock Market Evil Then? 32A Classic Example of Your Stock Performance 34The Guessing Game 37Lets Understand Options - Calls And Puts 39Greed Isn’t Good Or Bad, It’s What You Do With It 41Helper or Helped? 42That Little Bit Extra 47It’s All In Your Mind- ‐Set 49Think Now, Not When 51My Dad, And Why I Never Took His Advice On Investing 53The Workplace Changed 58New Jobs, New Challenges 59Not Everyone’s An Entrepreneur 61One Hundred and Sixty Eight 63The Second Job Myth Explored 65A Lot Of Effort For… 67It Takes Money To Make Money 69Let’s Look At The Bottom Line 74Real Estate, Risk or Covered Calls? 76Who Do You Trust? 79
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Getting The Wrong Kind Of Stock Market Education 83We Will Do Nothing To Avoid Failure 84Sound Advice Finally Makes Sense 86No More Excusitis 90J.O.B. 92Some Truths About J.O.B.s 95The Four Types Of Income Earner 96Buy Yourself A J.O.B. 99Being The Boss 100I For Investor 102Part Two – How It’s Done In Detail 108You Can Lose Your Super As Well As Any Fund Manager 108Multiple Pillars Of Income 110Foreign Or Domestic? It’s A Choice 111The Well- ‐Off Don’t Fear These Four 113Education Needs To Teach Change Management 116Fear of the Unknown Makes You Risk Averse 120Are We Ready To Investigate How We Do This? 122Domestic or Foreign? 123A Bit About Fokas Beyond 128Why Does The Stock Market Exist? 129Welcome to Fokas Beyond Covered Calls 131The Stock Value Falls – Now What? 134Lets Look At An Example 135This Is Not Guessing, Gambling Or Speculating! 139Why We Trade On The US Market 142I Know, You Want To Know More! 144$35K – Better Invested On The Dow, Or In BHP? 145This Is an Income Strategy From The Stock Market 149You can’t go broke making a PROFIT! 151Time Is Not A Major Requirement 153Learn From The Trials And Errors Of Others 144Take Control Of Your Money… And Your Future 158Guess who writes the most covered calls of all? 159At Last, The Decision! 163You Can Do This! 164Take Action Now And Be Part Of The 5% 166Model What We Do And Do It Well! 168Students Stories 170
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“Those who cannot remember the past are condemned to repeat it.”
George Santayana
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Introduction
I met George Fokas by way of an introduction from a mutual
friend. George needed an Editor for his book, I needed a book to
edit. It was one of those simple yet symbiotic relationships that
happen all the time in life. You have something to sell, so you
need a buyer. I have something I need to buy, so I need a seller.
Simple.
George Fokas has a message to spread, a mission in his life to
educate as many of us who are willing to listen and apply what he
has to teach us. This book is just one medium George leverages
to get that message to where it is wanted to be heard. A book is
a great way to spread a message because it can be passed on to
others, shared around until more and more people understand
the importance of being able to provide for themselves and their
loved ones, of being able to leverage the stock market in such a
way that they can’t lose.
Nothing in life is guaranteed, except death and taxes (Benjamin
Franklin), or change. There is never a guarantee you won’t lose
money invested in stocks and shares but there are ways to lose
as little money as possible while making positive returns, and
George tells you precisely how you can do this in this book.
This book is not a ‘begin here, go to the end, then stop’ kind of
book. It is a journey that, like most journeys, will have the reader
passing through the same junctions from time to time that
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he or she has already passed through. We learn by repetition
and by travelling in a semi-circular fashion, we may cover the
same ground a few times in different ways, but we do learn.
We do remember and we can recall the lesson, which is the key
objective.
By the time you finish this book you will have a very thorough
education on how to help yourself become financially better off
through sensible investment on the stock market. You will fully
appreciate the simplicity and the beauty of the Fokas method, of
why he utilizes covered calls and goes for a modest but regular
income rather than risking it all on guessing which way the
market may or may not go. Enjoy, learn and live well.
Perry Gamsby, D.Lit., MA(Writing), Dip. Business, Dip. Marketing
Editor, StreetWise Publications
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The Stock Market – A Brief HistoryWhile everyone wants to rush off and start making money, the
wise investor will take the time to learn about the environment
they will be doing business in. We are doomed to repeat history
if we don’t know what went on before us, because most things
in life are cyclical. In others words, there is nothing new under
the sun. My approach to making money, especially utilising
covered calls, is all based on what has gone before and what will
continue to occur. I can make that statement with confidence
because history proves me right every time. To really get the
value of your education in making money, including what I
share in this book, you should invest some of your reading time
learning about the history of the stock market. If nothing else,
it will demonstrate that people have been making, and losing,
money through speculation since civilization began. My goal is
to help you become an investor, not a speculator.
By understanding what has gone before and where people
went right, and wrong, not only will you understand the market
more profoundly, you will also better appreciate the value of my
methods. You will be able to see why I do what I do and develop
more confidence in my methods and in yourself when you apply
them to your investing. The sad thing that sticks in my mind as
I write this is that people have been making the same mistakes,
often for the very same reasons, for hundreds of years.
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They are the 95% of market traders, for want of a better term,
that my concept of doing exactly the opposite of the herd prove
correct.
Where It All Began
The very first ‘stock’ markets in human history occurred whenever
two groups of early humans met and exchanged items the other
needed but didn’t already have. They would exchange food, pelts,
tools and maybe pretty stones and sea shells. Coastal dwellers
would have items to trade different from those living further
inland; groups that grazed livestock might not have access to
vegetables or dried meat, while farming people would have need
of the skins produced by hunters and so on.
Markets gradually became regular events, first at certain times
of the year such as spring, mid-summer, autumn and maybe
even a mid-winter meet, usually held in the same location. The
cross roads of two animal migration paths might have become
the very first ‘stock exchange’. At this time, goods were being
exchanged via the barter system, with traders having some
shared idea of value. Two sheep for one donkey, or whatever it
was at the time.
Around 1700BC, the Babylonians invented what today we would
call money. Their king, Hammurabi, drew up a code of laws that
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included paying interest on loans and some basic rules for the
conduct of commercial transactions. Archeologists have dug
up clay tablets from all over Mesopotamia that record interest
bearing loans, evidence of the first securities market in human
history.
It wasn’t until a millennia and a half later that we began to trade
on less tangible items. The ‘Societates Publicanorum’ were
contractors in ancient Rome who performed public services
such as cleaning and maintaining the temples, feeding the
geese on Capitoline Hill (that had warned the Romans of attack
and saved the city from Gallic invasion in 390BC) andgenerally
keeping the city habitable for all. These highly sought after public
works contracts were divided into ‘partes’, or shares and were
bought and sold, or traded, often at very high prices. Cicero, a
famous statesman and orator, records in his writings; ‘shares
that had a very high price at the time…’ This suggests they had
lessened in value, much as shares do today.
The First Bond Market
A millennia or so later, in 1171 CE, the Doge of Venice needed to
pay for the city’s wars and so all citizens were forced to loan the
government money. These loans paid5% interest per year. These
enforced loans, called the ‘prestiti’, over time, became popular
trading instruments because the Venetian government never
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missed an interest payment until 1379. This trade in ‘prestiti’
became the first bond market in history. The 1379 default came
about because the Hundred Years War between the Kings of
England and France, and the Black Death (plague) affected
investor confidence. The English and French kings reneged on
their commitments to the Italian banks, just like some Latin
American countries and others have done to the IMF.
From Roman times to medieval Italy, and well into the
Renaissance, there is evidence of share trading activity. Most
of this trading usually concerned the shipment of trade goods
on a single voyage or other similar single ventures. The first
trading companies formed in Belgium with the Hanseatic
League. Later in England and other parts of Northern Europe
other trading companies were established to share the risks and
costs of trade. In England, the late 1500s saw the formation of
the Muscovy Company for the purposes of trade with Russia,
not to mention grabbing some of the spoils from the Hanseatic
League’s then monopoly on this market. The Dutch East Indies
Company was formed in Amsterdam in 1602, to trade in the
spices of the orient. Over time, they took on the running of the
colonies there with the power of life or death over the natives.
The Hudson Bay Company, the South Seas Company and the
East India Company were formed in England around this time
and after 1693, when William of Orange introduced the banking
and stock trading ideas of the Dutch, these trading companies
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began to thrive. William restructured the English banking
system which had been devastated by the costs of waging
regular and almost constant war. It is little different today with
the US government, for example, spending trillions of tax-payer’s
dollars funding its wars in Iraq and Afghanistan. While wars are
always horrendously expensive in lives as well as money and
lost opportunities, they also generate immense wealth for those
who profit from selling the materials needed to wage war.
Profit On The Share market is ‘Goblin Treasure’
In Amsterdam, in 1688, a book all about the stock exchange was
published by a Spanish Jew called Joseph de la Vega. Written
as a conversation between a philosopher, a merchant and a
shareholder, ‘Confusion of Confusions’ exposes the many scams
and cons that were rife at that time and are still pretty common
to this day. A review by Forbes magazine said;
“You will see between its staid lines that, despite what the media
says, nothing really important has changed in the financial
markets in centuries.”
De la Vega set out Four Rules for ‘speculation’;
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‘The first rule in speculation is: Never advise anyone to buy or sell
shares. Where guessing correctly is a form of witchcraft, counsel
cannot put on airs.
The second rule: Accept both your profits and your regrets. It is
best to seize what comes to hand when it comes, and not expect
that your good fortune and the favourable circumstances will last.
The third rule: Profit on the share market is goblin treasure: at
one moment, it is carbuncles, the next it is coal; one moment
diamonds, and the next pebbles. Sometimes, they are the tears
that Aurora leaves on the sweet morning grass, at other times,
they are just tears.
The fourth rule: He who wishes to become rich through this game
must have both money and patience.’
Surely that last is just as relevant today as it was in 1688. Across
the English Channel it was relevant also. A London broker,
John Costaing, began posting lists of stock and commodity
prices outside Joanathon’s Coffee House in 1698. As heated
and aggressive as traders on the floor of the New York Stock
Exchange get today, it must have been tame in comparison to the
old Royal Exchange. Share traders set up shop in coffee houses
in Exchange Alley after being barred for being too rowdy! In the
United States, trading began just after the American Revolution
in 1790 with De la Vega’s fourth rule still as relevant to the first
stock exchange in the new republic.
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It remained relevant through the ups and downs of the
19thcentury wars, the gold rushes in America, Canada, Australia,
South Africa and elsewhere and the myriad upheavals of the
industrial revolution, right into the 20th century and the Great
Crash of 1929. It is just as relevant today.
Stock exchanges sprang up around the world, trading stocks
and securities between the members of the exchange. Stock
exchanges operated as a form of mutual organisation. In
modern times, these exchanges became listed companies in
which shares are bought and sold, just like the companies that
are listed on their boards. The Sydney stock exchange was the
first to do this in the late 1990s. Since then, some exchanges
have bought controlling shares in other exchanges, such as the
New York Stock Exchange buying out the Euronext in 2002, later
demutualizing in 2005, three years after the NASDAQ.
The one thing throughout the ever changing history of the stock
market that has remained constant has to be the chance to
make a fortune, balanced by the very real risk of losing a fortune
even faster. For most investors, the stock market is merely a
sophisticated form of gambling, a corporate casino where
fortunes are made and lost overnight. As you will see further on,
it really doesn’t have to be this way. But too often it is, and it is
because people are impatient, greedy and most relevant of all,
ignorant of how to make money safely, whether the market is
going up or down. And then there are the bubbles…
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Did Someone Say Bubble?
When investors put immense demand on a stock and the
price is driven upwards, a bubble happens. There may not be
any rational reason for the price rocketing skywards other than
simple human greed, inflating the stock far higher than the value
of the company can justify. Just like a soap bubble blown by
a child, it keeps on getting bigger and bigger until eventually
the bubble bursts. Taking the soap analogy further, the bubble
just gets bigger and bigger until you run out of soap or bubble
making liquid and off it floats before bursting, leaving nothing
but tiny droplets of soapy water. These stocks are just like the
soap bubbles now; no longer perfectly formed and full of dazzle
and colour, but just wet, sticky residue, of use to no one.
After the bubble, or boom, comes the inevitable crash, something
most people remember about the stock market long after the
bubble that brought it recedes into history. Crashes can occur
without bubbles preceding them when, for some irrational and
often inexplicable reason, every man and his dog decides they
have to sell their stocks, RIGHT NOW! People panic and take
whatever they can get for their stock, desperate to claw back
some liquidity before the price drops to nothing, or even less
than that. A market analyst once remarked, ”You can think
of the relationship between bubbles and crashes like clouds
and rain. You can have clouds without it raining, but you can’t
have rain without clouds. Historically speaking, a market crash
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has always come after a bubble, so the heavier the cloud cover
(larger the bubble), the heavier the rain storm (crash)”.
In between the bubble and the crash there is usually, what is
referred to as, a ‘correction’. This is the moment when the
market seems to come to its senses and the perceived cause
of the bubble is brought back into line, usually wiping off some
of the value of the stocks but not crashing the market entirely.
The generally accepted rule is that a correction (read that as a
loss) should not exceed 20% of the face value of the stock on
the market.
Throughout stock market history there have been several very
memorable bubbles, all of which were followed by crashes.
Investor greed is the one constant thing about these bubbles.
Greed drove the stocks to bubble in the first place, and greed
feeds the frenzy during the crash, not to mention the all too real
fear of being left behind holding an empty bag. Before you start
shaking your head, puzzled as to how our ancestors could be
so gullible, so greedy and so naïve, nothing much has changed.
Consider the recent massive bubble and crash we called the
Global Financial Crises and you’ll find that that, too, was all down
to greed. Not just greedy Wall Street types, but every day, middle
class Americans cashing in on the equity of their homes to fund
their consumption addiction for electronic goods, holidays, cars.
Paper millionaires with no idea of how to manage the potential
(and that is all it was) wealth in their homes. Many made the
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mistake of taking on far more debt than they could service, but
even still, the bad end of Wall Street was making it very easy for
people to re-finance their mortgages, liquify their asset and pile
on the debt to derive instant gratification of their wants. The only
people who won were the usual puppet masters, ‘the 1%ers’.
They are the ones who know what most don’t; how to make
money no matter if the market is going up or down and most
importantly, how to make it go in the direction they choose. They
are educated as to how the system works. The core of this book
is all about arming you with an education, with the knowledge
necessary to make this system work for you and not the other
way around.
The Tulip Bubble
Mankind has changed a lot over the eons, but in many ways we
are no different today, as far as what really motivates us, as in
centuries past. When Tulips were first imported into Holland
from Turkey in 1593, they very quickly became something of
a status symbol. This demand to be seen as having the latest
‘must-have’ item pushed the prices up. By one of those strange
quirks of fate, a non-fatal virus caused the tulips to change
colours and patterns, making them even more desirable and by
extension, more expensive. Tulips grow from bulbs so they are
robust, survive being shipped around from place to place and
are easy to trade in. This ease of transportation allowed people
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to start trading the bulbs and make ridiculously large amounts
of money doing so. By 1634 there was quite an industry in action
around the growing of bulbs with tulip professionals working the
market to ensure they had sufficient stock. As more and more
people got involved, occasionally there was enough concern
over a possible scarcity of supply to increase demand, which of
course always leads to increased prices.
This was where that greed factor came into play, along with
some human stupidity as people began to trade ever more
valuable objects for tulip bulbs. This included selling off the
family home, with many even cashing in their life savings, so as
to buy up enough bulbs to make a killing, then retire. More and
more people bought in, thinking they could offload the bulbs to
unenlightened foreigners silly enough to pay more than they had
paid for these flowers. Does this sound in any way familiar?
Eventually the insanity peaked, with the value of the already
overpriced tulips enjoying a twenty-fold increase in value in just
one month. We would still be buying tulips today, for a couple
of million bucks a bulb, if the usual bubble bursting hadn’t
happened. As with every bubble, the smarter investors soon
realised this couldn’t go on forever and so they sold while the
selling was good. As usual, more and more investors herd the
dropping of the penny and decided to cash in while the market
was so high. All of a sudden there is no scarcity as everyone
started offering their bulbs for sale, and so the market became
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saturated, followed by a flood of tulip bulbs. As always, supply
exceeding demand led to a drop in prices and not long after that,
wholesale panic set in, prices plummeted leaving people with
piles of, now worthless, tulip bulbs and no house or life savings.
In 1637, as prices began to drop and investors started to panic
sell for whatever they could get, dealers reneged on contracts
and refused to honour them. It was so dire a situation the
government did a tax-payer funded bailout, intervening in a bid to
stop the crash, offering to honour contracts at 10% of face value.
This well-intentioned government action backfired, plunging
the market even lower and making such a solution impossible
to accomplish. Everybody suffered the consequences that
followed, including those who had sold early and kept their
profits, because now everyone had to endure several years of
economic depression.
The South Sea Bubble
In the early 1700s, the economy in England was buoyant enough
to attract the middle and upper classes who had money to
invest. The East India Company was paying out large, tax-free
dividends to the 499 investors that shared the spoils from trading
(and ruling) that far off eastern land. In a similar vein, the South
Sea Company was formed to manage all trade in the Pacific and
South America. There was a commonly held misconception
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that the people in the Spanish colonies of Mexico and South
America were only too keen to swap their gold and jewels for
good English wool. Investors bought the stocks as fast as they
could be written and re-written. The South Sea Company was like
a Dot Com garage start-up, attracting considerable investment
despite the odd minor issue to contend with. The first was war
with Spain, which made trading with their colonies somewhat
problematic. The second was more damaging; incompetence.
The managers were more adept at obtaining investment capital
than spending it wisely. Entire shipments of goods were left
rotting on the wrong docks on more than enough occasions to
indicate this was a serious and systemic problem.
A Scotsman by the name of John Law was, at that time, making
a small fortune for investors in France, not to mention a much
larger one for himself and the French King, all backed by land
owned by France in America. The Mississippi Company did
very well and spurred those in England to want to share in this
wealth, hence their interest in the South Seas Company. England
was also not on the best of terms with France so it would have
been unpatriotic, to say the least, to invest in that venture. The
difference between the two companies was that Law’s company
was properly run and backed by real property, whereas the South
Sea Company was backed by promises written on paper. From
the formation of the company in 1711, it took until 1720 for the
bubble to begin to burst for the South Sea Company. While there
was a time when just about any venture could attract investors,
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it was now time for the inevitable run and crash. IPOs had been
floated for ventures that claimed to make vegetables out of
sunshine and one famous offering that advertised “A COMPANY
for carrying out an undertaking of great advantage, but nobody
to know what it is.” If that venture was floated today, it would
raise over $100,000 if it mirrored how much was thrown away
300 years earlier.
The smarter investors twigged to what was about to happen
and so they sold out and disappeared with their ‘winnings’. As
it became obvious what was going on, everyone started to sell
their stock and cut their losses. The inevitable collapse became
even more rapid and definite. To avoid complete devastation of
the British banking system, once again the government stepped
in. A law outlawing the issuing of stock certificates was enacted
and helped stabilise the banking industry until it was repealed a
century later.
Florida Real Estate
The selling of Florida real estate, that was little more than
swampland and often underwater at high tide, was the big bubble
of the early 20th century. Even Charles Ponzi himself, the man
for whom ‘Ponzi Scheme’ was coined, sold Florida swampland
but he was not the only crook that made a fortune in the mid-
1920’s. The USA had just made huge amounts of money selling
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war materiel to both sides in the Great War (at least until the USA
entered on the side of the Allies in 1917). They became richer
than any other nation at any time in our history and so were as
prosperous a nation then as the British Empire was in 1711. It
is a given fact that people with lots of money need somewhere
to spend it or speculate with it, and a lot of these people were
escaping the harsh northern winter climate for a warmer one in
Florida.
The influx of people meant the demand for housing rose
dramatically, driving demand up and so it was not long before
everyone was selling real estate and prices went through the
clouds. Land prices quadrupled in just twelve months and
saturated the market by the end of 1926. All of a sudden, there
were no more ‘greater fools’ around willing to throw the same
silly sums at real estate agents and brokers. Once more, the
smart investors or, more accurately, speculators saw that it was
time to liquify their investments, selling up and disappearing
with their profits. The rest of the crowd more or less saw the
writing on the wall at the same time and everybody was looking
for a buyer. Prices fell, then plummeted, then fell some more.
Can you see a pattern emerging here? But wait, it gets worse!
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The Great Depression of 1929
From the start of September 1929 to the end of October that
year, the stock market dropped 40%. It had never dropped
so much, so quickly before but then it continued to slide
southwards until July 1932. At this time it had lost 90% of the
value it had enjoyed in the summer of 1929. Many hard-working
middle class Americans had poured their savings into the stock
market and various stock market traded instruments as it was
seen as a ‘no-risk’ place to watch your money grow. You can’t
really blame them because since the Great War had ended, the
stock market had done nothing but rise. Year after year, nearly
a decade of them, of constant growth made speculators forget
about bubbles and crashes. It was the Jazz age of flappers and
wild parties, despite Prohibition making alcohol a contraband
commodity.
The real problem was not so much the Charles Ponzi’s of the era,
but the average investor, or speculator, and their lack of education
as to how the market really works. It was the ignorance of the
uneducated investor throwing money anywhere that seemed a
good thing, helped along by the unscrupulous manipulation of
the market by those in the know; brokers, traders, investment
bankers and so on. The market took on a life of its own, growing
at a breakneck pace and buoyed by one ridiculous scheme after
another actually paying off.
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It was as if you couldn’t lose, unless you weren’t in the market,
and nobody likes to miss out and watch their peers forge ahead
of them.
Insiders manipulated stocks, making them grow based on
rumours and ‘tip-offs’ before cashing in. This went on for several
years, but eventually there was too much going on for it to not
fall apart. Once the insiders twigged and sold their stock, the
usual thing happened and the herd of ordinary investors raced
to try and cash themselves out. The inevitable crash followed
and some felt there was no point going on and jumped out of
their office windows to their deaths. To prevent a similar crash
and depression occurring again, President Franklin D. Roosevelt
created the Securities and Exchange Commission, charged with
keeping the market and investors safe. It did a fairly decent job
for the next fifty years or so, but then tragedy, or more aptly,
greed and human nature, struck again.
The Crash of 1987
The Great Depression that followed the Wall Street Crash lasted
until the US entered the Second World War. After 1941, the stock
market resumed its climb and continued to do so (what’s known
as a ‘Bull’ or bullish market, as compared to a falling, or ‘Bear’
market) until 1987. The massive government spending on the
military, the outspending of the Soviet Bloc as a strategy to win
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the Cold War, and the growing middle class all helped to keep
the stock market vibrant. Then came the crash of 1987.
Once again, investors had failed to think about the real worth of
the companies in which they invested. The trend for companies
to produce newspeak mission statements using words like
synergy, paradigm and leverage were easier to read and accept,
rather than take the time to do their homework and find out the
company was massively in debt without a product to profit from.
The 1980s were the days of Gordon Gecko (the movie ‘Wall
Street’ gave us the meme ‘greed is good’) and it was a time
of takeover after take over. Once taken over by one company
buying a controlling stake (might be as little as just 21% of the
shares on the market), the assets of that corporate victim would
be stripped. Stock, products, patents, research, pension fund
cash and real estate holdings were sold off with the proceeds
divided up as dividends to share holders. The shell of a once
prosperous enterprise that was left was then sold off to some
other corporate raider. The staff were left in limbo, wondering
if they had a job to come to next Monday morning. Creditors
and suppliers would rarely be paid what was owed to them.
The gutted company would be placed into liquidation and the
hands of the receivers who would take what little remained for
their fees. Not that any of these consequences ever pricked the
consciences of the corporate raiders who would use a string of
holding companies to form a barrier to any liability lawsuit.
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Investing in corporate raiders was a sure-fire way to make quick
money, until the crash would begin. The first inkling was usually
the SEC investigating claims of insider trading, the selling of junk
bonds and other worthless products, thrown together as a way
to cash in on some of the assets of a taken over company. As
the market lost confidence, investors started to sell off and cash
themselves up. It was the same story all over again, but it wasn’t
going to be the last time.
The 1997 Asian Crisis
Back as far as 1989 the fallout from the 1987 crash gave a shove
to the Asian market, pushing it into the same yawning cavern
of looming disaster. At the time, the Japanese enjoyed a well
earned reputation for imitation and more often improvement, as
well as being able to run very profitable corporations. When it
came to the stock market, they took the bull by the horns and
refused to let go, even if the rest of the world was getting mauled
by the bear.
Recovering from WW2 gave the Japanese a goal, and they
chased it with the kind of zeal they are renowned for. In the 1970s
and 80s ‘Japan Inc.’ was the business model and people all over
the world were reading four hundred year old sword fighting
texts like Mushashi Miyamoto’s “Go Rin No Sho” (or “Book Of
Five Rings”) to get some insight into the Japanese success
THE 60 MINUTE CASHFLOW INVESTOR
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story and sending executives to Japan to study their methods.
Between 1955 and 1990 Japanese of all ages jumped into trading
and it became something of a national sport, with land prices
rising to 70 times their starting price and stocks increasing over
100 times what they had once been. It seemed even the average
man and woman in the street embraced the stock market more
completely than the Americans had prior to 1929. To some
outside observers it was clear the Japanese economy was a
gigantic bubble just waiting to pop.
When the bubble did finally burst it was believed the government’s
very close monitoring of the market would fix any problems.
Sadly, as had happened before in centuries past, when the
government did intervene it made the situation much worse.
Before long, the other ‘Asian Tigers’ suffered their own crashes,
and in 1997 the stock markets of Thailand, Taiwan, Singapore,
Malaysia, the Philippines, South Korea and Japan all suffered
major drops in value. Not long after this, China decided to join
the 20th century, just in time for the 21st.
“I don’t go to Wall Street for the deals, because that’s not where
they are!” – Warren Buffett
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The Dot Com Crash of 2000 to 2002
Back in the USA, the NASDAQ Composite index lost 78% of
its value, falling from 5046.86 to 1114.11 from March 2000
to October 2002. Firms in Silicon Valley took the brunt of the
hammering with just about all connected to online enterprises
and startups, hence the title ‘Dot Com Crash’. A lot of the blame
can be placed squarely on the shoulders of the market itself for
the speed in which the bubble grew.
It was in 1995 that the ‘Information Superhighway’ and the
Internet really took off. Anyone with anything to do with young
geeks and a garage had money thrown at them by investors
eager to cash in on the ground floor of the next Hewlett Packard,
Microsoft or Apple. Information technology, or IT, was the word
buzzing around every stock broker bar in Lower Manhattan;
paradigm, internet, online, consumer-driven navigation, tailored
web experience and networking all had investors all too eager
to invest, pouring millions into IPOs without any thought to the
value of the product or company. Young men in their teens and
early twenties were becoming ‘siliconaires’, appearing on current
affairs programs and buying up expensive real estate, flash cars
and expensive toy after expensive toy. There were 457 IPOs in
1999 alone, some 117 of which doubled in price on their first
day of trading.
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By 2001 the novelty had worn off because so many of these next
great sure things simply failed to produce any actual revenue.
That year there were just 76 IPOs, none of which came close to
doubling their stock price on their first day of trading.
The simplest explanation for the Dot Com bubble and crash is
summed up in four words: too much, too fast. The market went
crazy just as it had with tulips, foreign trading ventures to South
America and swampland in Florida. This time it was technology.
Once again, human greed took over. It is one thing to throw
money into an IPO but if that company then fails to make any
revenue, the value of that stock drops because the company
isn’t worth the price asked. That happens to all companies and
all asset classes, even those they always swear can never lose
value… like real estate.
The Housing Bubble And Crash 2007 - 2009
In October of 2007, the S&P 500 showed a high of 1576. Eighteen
months or so later, in March of 2009 it had declined by 57%
to just 676. The S&P 500 is the market that, like the NASDAQ
Composite and its focus on technology, looks closely at the US
real estate market and is the best indicator of market trends
and health. One thing leads to another and the Dot Com crash
created a recession which caused the Federal Reserve to keep
interest rates at an all time low for an extended period of time
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28
leading to a glut of savings around the world. Savings need to
be invested somewhere, so a lot of people started buying bricks
and mortar, real property. House values never go down, right?
Nothing is as safe and solid as bricks and mortar, yes? This
was the thinking at that time and still is for many people today,
but events before, then and since, have certainly cast a fair few
doubts on this ‘fact’.
As the demand for property grew, so did the prices asked and the
values placed on these properties climbed accordingly. People
were encouraged, even exhorted by the advertising of finance
corporations to draw on the equity in their homes and take out
loans and credit cards, go on overseas holidays, buy new cars,
go on spending sprees, and why not?
It was all backed by the value of your ever increasing in value
home. It just went on and on.
Banks were loaning money to anyone and everyone, and new
instruments and products were invented that cashed in on the
advances in the calculating capabilities of computers. These
enhanced capabilities allowed financiers to create fund products
that had varying levels, or tranches, of security.
They could sell off a portion of a property to one person at one
level and another portion of the same property to another at a
different level. The new algorithms investment bankers used
to calculate ever more complex investment products allowed
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a lot of the mortgage market to be converted into AAA rated
securities and sold on, then resold and resold again. Each time
the banks made commission and profits. Once the market
became saturated and there was nobody left to pay the ridiculous
prices asked for houses for sale, that meant there were no new
mortgages being written and so the collapse began.
It was a recipe for disaster, for the speculators but of course, not
for the smart investors who knew either to stay away, or when
to cash out.
Yet again, it got to the point where the market ran out of bigger
and bigger fools to keep buying up everything on offer. Major
banks went bankrupt, industry giants called in their favours and
campaign contributions and got the tax payer to bail them out.
The rest is (recent) history. Sadly, many hundreds of thousands
of Americans lost their homes, their jobs and their futures.
This was not deserved or due to their own greed, but rather the
greed of people who are now once again back at their desks
making money and deciding whether to holiday in Paris or go to
Bermuda again.
If the people who lost virtually everything had been properly
educated in the smart way to invest and make money, they
would be even better off today than before, despite the crash.
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The number of people that lost money in all these crashes is
too big to mention and we all remember these crashes. Very
few understand and acknowledge that where there is a crash,
there will also be a boom. If those people continued to stay
in the market during these crashes, they would be extremely
wealthy individuals right now. The sad part is, we humans tend
to remember the bad, and not the good. In between all these
crashes was boom and those who sat on the side lines missed
it. Most who lost during these crashes and pulled out of the
market due to lack of knowledge and patience, left bleeding and
wounded never to return again. We need to remember that with
doom, there is boom.
To quote the Spanish philosopher, George Santayana, “Those
who cannot remember the past are condemned to repeat it.”
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“I achieved a profit of USD$15,305 in just 8 MONTHS - R.O.I. 19.28%!”
My name is Greg and I joined the Fokas Beyond community in March 2016.
I was looking for an opportunity to create more income and eventually replace my day job income.
I began with my virtual trading account in March 2016 and by the beginning of August 2016 was ready to place my first live trade.
I opened my account with USD$20,000 and after 12 months following the education and strategies provided by Fokas Beyond I had a ROI (return on investment) of 14% - USD$2,800.
After results like that I decided to setup a Self-Managed Super Fund to give me access to a larger pool of money to invest with.
I opened my Super Account with USD$79,341 in July 2017 and placed my first trade in August 2017.
My balance 8 months later is USD$94,646.
That’s a profit of USD$15,305 in 8 months - ROI 19.28%
This month’s trades, I had an account balance beginning of month USD$90,880.78 and my balance end of month USD$94,646.04 money back in my account.
That’s a profit for the month of USD$3792.95 and an ROI of 4.17% for 1 MONTH!
I am thrilled with the strategy, education and the invaluable Coaches. I always learn something on the Coaches calls and the Boot Camps.
Thanks George and Thanks Fokas Beyond Team.
regards,
Greg
THE 60 MINUTE CASHFLOW INVESTOR
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Is The Stock Market Evil Then?No, of course the stock market isn’t evil. The intentions of some
who exploit the market for their own ends might be considered
in the evil category, but not the market itself. The stock market
is merely a vehicle which anyone can use to make (or lose)
money. It is a means of transportation and, like other forms of
transportation, you have a choice. You can walk, catch a bus,
take a taxi, drive your own car, use the train, fly or hop on a ferry.
You choose the most appropriate method of transportation,
commensurate with your means, to get you from A to B.
The stock market is no different so long as you don’t try to
‘game’ the system. Get greedy and swallow the false promises
of those who only make money when you spend yours and you
will quickly find the car will break down, the plane will crash or
the ferry will sink. Get an education so you can decide which
mode of transportation will get you where you want to go in
comfort and safety and you will be fine.
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Turn your pain into financial gain.
100 year chart – Dow Jones
As you can see the Dow Jones since 1900 – 2014 has been up
trending and with swings in between it is still heading north.
Now that you have read something of the history of the stock
market and the bubbles and crashes, pause and reflect what it
is exactly you are hoping to achieve with your own involvement
in the market? If it is mega returns on your money invested,
especially overnight or within a few weeks, then you are reading
the wrong book.
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The preceding chapter should have convinced you that, while
the majority of people who buy and sell shares and trade on the
market do so to make spectacular gains over relatively short
periods of time, the very same majority usually lose most if not
all of their investment, and sometimes even more besides.
You do not want to be one of those people. Nor can you be
one of the few who make fortunes whether the market rises or
falls because they have manipulated the whole thing to their
advantage. But you can make a decent living from investing
through the smart application of strategies such as covered
calls, and you can do it over a long period of time, along with any
market conditions.
“Compounding is mankind’s greatest invention because it allows
for the reliable, systematic accumulation of wealth.” – Albert
Einstein
Just as with the secret of compound interest on a deposit
being time, so too with the share market. If we look closely at
the charts, we see peaks and troughs; rises and falls, often on
a daily basis. At some time this year you will see at least one
headline claiming ‘Billions wiped off the Stock Market’. There will
be a sad story detailing how in one horrifying afternoon the value
of shares plummeted umpteen billion dollars. If you owned a
million dollars worth of Stock X in the morning, it is worth just
$3000 this afternoon! Oh no! We’re ruined! Not so.
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A Classic Example of Your Stock Performance
If you bought the X stock at say $1 a share and you invested
$10,000; you would own 10,000 shares of X. Over the next
however long the market rises and the price of the shares
increases to $100 each. Your 10,000 shares are now worth
$1,000,000. If you sold them at that price you would make
$990,000, less any taxes due and brokerage fees payable. You
turned ten grand into a million bucks. Well done. Now wake up
and stop dreaming.
The likelihood of this happening is rare, but not impossible.
Plenty of stocks have increased more than 100 times their
opening price; it’s the stuff that fuels the bubble legends after all.
Let’s return to the ‘billions wiped off the stock market’ headline.
Say you didn’t sell. You decided to hang on to your portfolio of
X. A bad day of trading, influenced by the US backing Israel over
something in the Middle East, Russia demanding a former Soviet
Republic pay what they owe for gas supplies, US raising interest
rates and pulling back from Quantitative easing, and a major
global corporation buying out another in Asia and the market is
‘jittery’. People start to sell, and before you know it there is a run
on and everyone is selling whatever they can to try and cash up.
Your X stock is hit hard and slides to $50 a share.
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Your million dollar portfolio is now worth just half, $500,000. You
are still way ahead, but you panic and sell of some of your stock,
which makes other people panic and they sell, and just after you
can get rid of half what you hold, the stock has plummeted to
just $2 a share. You sold 5,000 shares at $30, the best you could
get anyone to pay for them. You still hold 5,000 shares but they
are worth only $10,000. You look at the $150,000 you made
selling half your portfolio and weep. You weep because you had
plans to cash in those 5,000 shares when they were worth $100
each and buy a retirement home. Now you can barely afford a
Time Share on the Gold Coast.
The problem is not the money you made or the money you failed
to make (you can’t have lost it as you still have your original
$10,000) but how you look at the whole investing thing. Attitude
and mindset make all the difference. Too many in this position
will lament the loss of hundreds of thousands of dollars… dollars
they never had. The stock was worth that amount of money, for
a time. In reality, stock is only worth what someone is willing to
pay for it. You paid $1 a share, so one might argue that is what
it is worth; to you. You sold 5,000 shares at $30 a pop, that’s a
huge gain. The buyer thought the stock was worth that, hence
they bought, and in real terms you are lucky to find anyone
paying for stock that has already dropped $70, but those figures
are just for illustration purposes, anyway.
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37
The more likely scenario would have been you being unable to
sell a share to anyone until the market bottomed out at wherever
it was going to end; in our case at $2. You could have sold your
5,000 shares then and made your investment back, plus still have
$10,000 worth of stock just waiting for the next day’s trading.
The next day there is just as much chance the stock will rise as
it will fall. 50/50 to be precise. It could stay where it is, which is
the third option, but generally it will go up or down, but you won’t
know which way until it starts to move.
The Guessing Game
I could jump in at this point and offer to sell you a crystal ball,
imported by a Romanian neighbour of mine whose sister lives
next door to genuine gypsies in Bucharest. Or, how about a high-
tech smart phone app that predicts market trends based on
algorithms and the square root of Pi… but neither ‘tool’ would
be worth what I could get from you for them. There is no way
to accurately predict which way the market will go. Yes, you can
make an educated guess based on all sorts of factors, experience
and what have you, but nothing is guaranteed. Nothing is, or can
be, a 100% sure thing.
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Investing on the stock market is a guessing game. You can look
at the ‘form’ of stocks over the past however long they have
been traded and get some idea of how they might perform in the
future, but you can’t predict with any surety how they actually
will behave. Nobody can. Most especially, anyone who makes
their living selling people the lie that they can predict the market;
whether through training, consultation, a software program or
any other means or method. It can’t be done.
The worst part of the Guessing Game is the bit where people
speculate with Calls and Puts and buy Options based on how
they hope or wish the stock will perform. We will cover this in
more detail later however for now, know that there are two sides
to the Options market. For the buyer of an Option to acquire it,
there has to be a writer of the Option who creates it and then
sells it to the buyer. Buyers are speculators, guessing and
gambling in the hope they get the direction right. Writers create
Options, sell them, open their positions on the stock market with
a Credit, earning income irrespective of whether the market or
the Option goes up or down. We covered call investors use the
stock market as a vehicle to earn income from it, every month
irrespective of market direction, just like property investors
use the property market as a vehicle to earn income,(rental)
irrespective of whether the property goes up, down or sideways
in value.
THE 60 MINUTE CASHFLOW INVESTOR
39
Lets Understand Options - Calls And Puts
A Call option (or just ‘call’) is a standardized contract that gives
the buyer/holder the right, but not the obligation, to buy 100
shares of stock that are subject to the option (the ‘underlying
stock’) at a pre-determined price (the ‘exercise’ or ‘strike’ price)
for a set period of time (expiry month). In other words, for us
covered call investors, we are selling someone else the right to
buy our stock at a set price by a certain time.
A Put option (or just ‘put’) is a standardized contract that gives
the buyer/holder the right, but not the obligation, to sell 100
shares of stock that are subject to the option (the ‘underlying
stock’) at a pre- determined price (the ‘exercise’ or ‘strike’ price)
for a set period of time (expiry month). In other words, you are
selling someone else the right to buy your stock at a set price
by a certain time if the stock drops below the set price on or
before the expiry date.
If they buy a 35 October Call Option for X, then they can buy the
share for $35 anytime before the contract expiry date (being the
third Friday in October). If the share price goes above $35 then
they can buy it for $35 and they make a profit. If it doesn’t then
they just paid for an option they won’t exercise because why buy
the share at $35 if it is available on the open market for less?
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40
A Put Option means they believe the share price is falling or
will fall so they buy say a 35 October Put Option for X. If the
share price falls below this $35, then they can sell the shares
to the investor who sold them the option for $35, even though
the share is not worth that on the open market. Of course these
options are traded themselves, being bought and sold many
times before they reach the expiry date.
The people who own the stock can become writers of options,
what we call market makers. Therefore the stock people own that
is optioned are paid for the option, the exclusive ‘first dibs’ on that
stock, bought by the option buyer as either a Call or a Put. Now
we look at the other side of the option, the creating side. We as
market makers open our positions with a credit, earning income
for the month on our stock capital no matter what happens on
the market with the stock. The buyer on the other hand takes on
the risk, outlaying money, opening their positions with a debit,
waiting in anticipation that they have predicted the direction of
the market correctly in the hope to make money. This puts the
risk of the option to the buyer. They hold an option that decays in
value and will expire by the end of the contract period unless they
exercise the right or on-sell it. It all depends on what happens to
the value or price of the stock over the month the option is in
force. Covered calls protect the stock holder so regardless of
whether the price goes up or down,they make their money and
have no exposure to the vagaries of the market. They also don’t
need a crystal ball or a snappy App.
THE 60 MINUTE CASHFLOW INVESTOR
41
Before we explore covered calls in detail, let’s examine why
people mostly ignore this safe, proven way of investing and
prefer to gamble with options and penny stocks, day trading and
all the other easy ways to lose your investment. Basically, it gets
back to that most human of human natures, greed.
Greed Isn’t Good Or Bad, It’s What You Do With It
Greed is one of the driving forces of human nature. It is present in
all of us to some extent and in varying aspects. We are all greedy
to an extent about something, and greed is not necessarily a
negative thing. It is, as with everything, what you do with it
that counts. How you apply your natural greed makes all the
difference. Some of us are greedy for a better world and do all
we can to help others while making sure we don’t do any harm,
or at least as little harm as possible.
Greed is a relative of ambition, which in turn knows determination,
motivation and persistence. Some people are ambitious in ways
that are self-centred and all about what’s in it for them. Others
are altruistic and do what they do for the good of others. Most
of us are somewhere in between. We neither have the ambition
to be in power like a prime ministerial hopeful, nor do we want to
save the world and live in a Third World drain pipe while helping
the sick.
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Moderation is the key, and there is nothing wrong with being
ambitious, or even greedy for success and improvement… so
long as you achieve your goals ethically, morally and without
harming others.
Helper or Helped?
One of the really cool things about making a good living the
way I do is that I have plenty of free time to devote to altruistic
projects. I love helping other people and I would say most of us
feel the same way. The English actor and commentator, Stephen
Fry, asked the question;
“Which would you rather be. Someone asking for help or the
person able to give it?”
The answer is obvious, surely? The person giving the help is a far
better position to be in than one having to ask for help. I’m not
saying you should never ask for help when it is needed, not at all.
What I am saying is I agree with Stephen Fry. It is far better to be
the person who is in a position to be asked to help, to be able to
offer their assistance.
One of the motivators behind writing this book is my personal
objective of spreading financial education as far and as wide as
I can. One way to spread the word is through a book.
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43
A book has a certain gravitas, or weight, value, credibility that
other media may lack to some people’s minds. That it is printed
and bound, published and distributed, and made available for
the world to read does indeed give the information within some
weight. If that information is valid and has veracity and the reader
applies the lessons within, then it will have made a worthwhile
contribution not only to the individual reader but also to their
family, friends and society as a whole.
The results of my members and, seeing average, ordinary people
applying the concept that we educate them with and building
another pillar of income and at times replacing their income,
inspires me to continue on my path. On a daily basis I receive
emails and texts from my members thanking me and my team
for what we are doing, and this is rewarding.
Being able to generate an income through educated investing
means that you are in a position to be the one who can help, not
the one needing help. When you have to drag yourself to work
everyday to do your J.O.B., when you are living pay day to pay
day and the threat of you or your spouse being laid off keeps you
awake at night; you are lucky if you can help yourself let alone
anyone else.
Getting back to greed, the one thing that often stops any of us
from achieving what we want to in life is ourselves and our own
limitations, fears and negativity. If you think you can’t do what I
do to make a living, then you are correct. One hundred percent
THE 60 MINUTE CASHFLOW INVESTOR
44
spot on. If you think you can learn how to do what I do and then
give it your best shot, you are correct. One hundred percent spot
on. Your perception is your reality and if you tell yourself you
can’t then you can’t… how could you not? If you tell yourself you
can then you can, or at the very least you will give it your best
attempt to make it happen.
Too often we build barriers and hurdles for ourselves that we
should never have made. We tend to think that if we believe in
ourselves then we are being selfish and egotistical and in effect
greedy, putting ourselves before others. The reality is if we are
unable to help ourselves then we can’t help anyone else, so a
little ‘greed’, ‘selfishness’ or what have you, isn’t such a bad thing.
Get greedy for success, but not for success at any cost and at
the expense of your loved ones, friends, family, colleagues and
community.
How many people have dreams, visions and goals that they
strive towards and have ideas they want to pursue only to
discuss these with family, loved ones, neighbours or work
colleagues who deflate them; as opposed to telling them to
push their boundaries, live their dreams, pursue their goals? One
of my key sayings when I teach around the world is: “Don’t allow
other people’s opinions become your reality.” See, if those people
who bring you down with their opinions have not done what you
want to do, then it is purely an opinion.
THE 60 MINUTE CASHFLOW INVESTOR
45
“My investment has doubled in value – that’s roughly 25% per annum for the past 4 years!”
Hi Fokas Beyond Family,
I’m Roxane, I’ve been with Fokas Beyond since 2013 (end of the year). I decided to join the Fokas team because I was excited by the concept of solid growth with better than bank returns.
I was sceptical and held myself in reserve, but George had an honesty that I trusted.
I didn’t have much at the time and I took a punt with the little that I had.George even personally helped me over some doubts I was experiencing. <3
After a recent email from George with a challenge to be bold and step-up, and after having tested George’s tried and true methods I decided to take that leap.
My initial personal investment was $10,000 AUD which has doubled in value ($8,000USD to $16,000USD) – that’s roughly 25% per annum for the past 4 years!
When the email arrived asking us to step-up, I thought hard and decided that 2018 is going to be my year.
I had $100,000 that was sitting in an offset account earning around 6% pa but I knew can earn better with Fokas Beyond.
So, I moved $90,000 into a trust account under Fokas (keeping $10,000 at home in reserve “just in case...”).
THE 60 MINUTE CASHFLOW INVESTOR
46
For my first month, I’ve made 4 trades – 1 weekly and 3 monthly trades.
The result is that my $90,000 AUD has grown by at least $2,000AUD.
That’s roughly a ROI of 2% for ONE month! Which is as close to 25% for the year as you can get.
Thank you, George for showing me a better way to grow my money.
The effect is that I have breathing space within my financial situation. I have gained a new-found sense of freedom.
I’ve tested the process with personal funds that I could afford to lose but which in fact have doubled.
I’m planning to wait for the capital to double itself in 4 years, then pay back the initial capital into the offset account.
At the same time, I’ll use some of the growth to pay down the loan against which this money was drawn. I’m expecting the loan to be licked in no time.
Kind regards,
Roxane
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47
That Little Bit ExtraImagine what you could do for your family if you could make one
hundred dollars a month extra. $1,200 a year would cover the
Christmas splurge, pay for a nice family vacation somewhere
not too distant or guarantee the car rego is covered for another
year. Just a bit more, say
$250 a month on top of what you make now, multiply that by
12 months and you have $3,000. What could you do with three
grand were it to fall from the pages of this book right this instant?
Three thousand dollars to do with as you please.
Now imagine if you made ten times that amount. $30,000 every
year on top of what you already bring home; all for working
literally a few minutes a month. There is no reason that number
can’t be $300,000 or $3,000,000. It all depends on how much
you invest because the return will be pretty much the same, and
pretty modest percentage-wise but it will be there, every month.
That extra $3,000 a year, or $30,000 or however much it becomes,
is what will make the difference between you being someone
who can help themselves and others, or someone who is in
need of help. Helper or helped? If you invested $10,000 in stocks
and made 1% per month using what you will learn within these
pages, that is $100 a month, or $1,200 a year. 12% return on
investment (ROI) is pretty good and we will explore these figures
in more detail further on.
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For now, just consider that 12% and remember that is not a
‘greedy’ number but a very modest, achievable one.
You only ever grow as a human being if you’re outside your
comfort zone.
If I take $10,000 and put it in a cash deposit (CD) I am lucky
to make 5% at the moment, give or take. That would require
me tying that money up for 6 or 12 months. At the end of the
year I would have $10,500, a ROI of just $500. I could roll it over
for another year and providing I can still achieve 5%, after 24
months in total my $10,000 will have become $11,025. My stock
portfolio on the other hand would have generated $2,400 in
income (less brokerage fees of course, but for now let’s keep it
simple) and I would still have the stock. If I bought 10,000 shares
in X at $1 a share and they were still worth the same, I would
have $10,000 of X. If the stock had dropped in price to say $0.90,
then I would have $9,000 of X plus the $2,400 I made, and the
total would be $11,400. As we have seen, there is every chance
the stock could be up at the time I do my ‘sums’ and each share
might be worth $1.10. Now my portfolio is worth $11,000 plus
the $2,400 I made over the two years.
The only time I will lose money in real terms is if I sell the stock
for less than what I paid for it, and why would I do that? If the
stock falls to $0.01 a share, then on paper it is worth $10.00. But
unless I desperately need that ten bucks right now, why would I
sell my stock?
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There is no loss until you sell as the stock owner physically owns
the tangible asset.
It’s All In Your Mind-Set
You cannot expect victory and plan for defeat.
It really is all in your mindset. If you believe the ‘autistic
economics’ we are pedaled through the mainstream media and
various institutions of allegedly higher learning, the way to make
money on the stock market is to buy and sell stocks, options,
securities, futures and so on. Sure, but where does it say you
have to sell at a loss just because the stock price is lower than it
was when you bought it?
When you purchase an investment property and you find within
the year that property to be worth less, do you sell it? No you
don’t. You are still earning income off that property irrespective
of its current value, whether higher or lower.
Unless you buy the first stock you see or you fall into the clutches
of an unscrupulous broker who advises you to buy what he
makes the most commission from, you should be able to buy
stock that will hang around and enjoy growth, year on year.
Modest growth certainly, but steady, year on year growth or, at
worst, no fall in value not soon offset by a return to par. I will tell
you which stocks fit these criteria and how to choose them. You
become educated, then you don’t need to rely on others.
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It is not rocket science but it does take a little education in what
to look for in a good stock to buy and hold. Buy. And hold. Not
buy and sell, not day trade the penny dreadfuls or spend your life
online watching the markets and getting ulcers and high blood
pressure. None of that.
Select good stock, buy it for whatever the price is at the time
you want in to the market, then hold it and leverage it through
covered calls to make steady, reliable income each and every
month. Take a look at the chart and see how the stock market
has climbed steadily over the past100 or so years. Sure there
have been some drops and even plummets, but overall the
direction of change has always been upwards. I would be so
bold as to say it always will be, overall, upwards. That is the
nature of the market, the economy, the world and human nature.
I can remember when I was a kid and a can of soft drink was
fifty cents. You could buy it by the carton in the supermarket for
half that per can. The retail price charged in the milk bars took
into account the refrigeration and the fact the shop was selling
cans one by one. They needed a mark-up to provide them with a
profit. If you didn’t want to pay the retail price you could buy it for
half at the supermarket, but you had to buy two dozen cans at a
time to enjoy the cheaper, ‘wholesale’ price. So instead of paying
fifty cents for one can, you were paying $6 for 24. A huge saving
provided you had the six bucks, needed the extra cans of drink
and had the means to store and cool them.
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If you were out and about and just wanted a drink to go with your
pie for lunch, buying an entire carton of warm soft drink was not
a good solution.
Dow Jones 1988 – 2014
The same can be said for waiting until the stock you want to buy
has dropped to some, for whatever reason, acceptable price to
you. You could be waiting a long time, even forever. If it doesn’t
fall but keeps going up then you will kick yourself for not having
bought in way back when. Not only that, all the time you sit and
watch and wait and hope the price will drop, the stock is not out
there as a covered call making you money.
Think Now, Not When
Think ‘now’, not ‘when’. Just as those cans of soft drink are now
retailing at $2.50, I can still buy a carton of warm ones for a lot
less per can but they still need refrigerating and carrying home
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52
and all the rest. If I had bought 1,000 shares in Apple way back
when, if I had bought gold when it rocketed to US$900 an ounce,
if I had… If has no place in sensible investing. If is a gambler’s
word, a speculator’s word.
Choose your stocks now and buy them now. Get them out there
and making money for you from now. Not from next month
or when the price falls to whatever, or if this happens or that
occurs. Now. The reality is the stock will eventually go up and
cost more to buy then than it does now, so why wait? If you pick
a stock and wait and it does go down, what does that say about
your choice of stock?
Either it is a temporary drop and will soon recover, or it is on
its way out and you shouldn’t have bought the stock in the first
place. This usually occurs when investors get too clever and try
to discover, single-handedly, the next ‘sure thing’. Far better to
jump on the same wagon everyone else is riding and have been
for decades, where there is a good history of solid performance.
What they call ‘blue-chip’ stocks.
So read on and learn about why I chose to obtain the education I
am about to share with you. I will tell you precisely why I do what
I do and why I do it this way, and you will understand the rational
behind my method. I am sure once you learn a little more about
me and what has driven me to get to where I am today you will
feel more confident in reading on and learning my method.
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Hopefully by the end of the book you will be confident enough to
actually apply the lessons taught.
My Dad, And Why I Never Took His Advice On Investing
Growing up, I never got to see my father. Dad came to Australia
after World War 2 as a young, single man from Greece. He met
my mother and they married, had a family and he worked to
provide for them. He worked hard, darned hard. For as long as
I can remember he would work a 12-hour shift. He would get
up at three in the morning, catch two trains and two busses to
start at 6 a.m. He would then work a 12-hour shift, finishing at 6
p.m., then catch two trains and two busses to come home, have
dinner, go to sleep, and do it all again the next day. He did this six
days a week. On the seventh day, he slept, as one might imagine
someone who worked so physically hard would do. Growing up,
all I knew was my mother. I had my mother with me all day as a
young kid, then before and after school when I was older. See, in
those days the man of the house was always out, working hard,
the mother was at home, also working hard. Hard work. That
was the mentality.
My parents had very limited English and absolutely no idea of
making a living any way other than through hard work, usually
for wages because that was ‘secure’.
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They knew people made a good living being in a small business
but that was also potentially risky as you could go out of business.
But, if you worked for a big company or the government, and you
worked hard and were a good employee, then you were safe,
your job was secure. That was how it was for them and they
certainly lived up to their side of the bargain.
Today we know nothing is ‘secure’ and no job, not even a public
service position, is guaranteed. The old days of going to work
the day after leaving school and staying with the same employer
for the next fifty years,then retiring to live off the pension have
long gone. Nobody expects a ‘job for life’ these days, not even
Japanese ‘salary men’. My parents knew no different, it was how
they had been brought up. It was how their parents had been
brought up and their parents before them. For centuries, nothing
much had changed since the Industrial Revolution got people off
the farms and into the factories in the city. Even those coming
from remote rural areas or idyllic Greek islands knew that if you
wanted to succeed in life then you had to work hard. You had to
exchange your sweat and time for wages. You didn’t argue with
the boss or the owner, you were grateful they were giving you a
job and you showed that gratitude by working yourself to death
for them.
As I write this, our Treasurer is pushing to raise the retirement
age to 70.
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If you spent every working day of your life sitting in a plush chair
in an airconditioned office, 70 might seem a reasonable age to
stop work and retire on the aged pension. But for those who
work outside, physical workers, it is ridiculous to expect them
to keep up with workmates half their age or younger, and not
everyone wants to move into a management role, even if they
are qualified and capable. What are those people going to do?
Will they make it to 70 or literally drop dead in the traces at work,
struggling to get old enough to take a well deserved rest?
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“I am more than happy to replace 9 hours of work/day with 10 minutes of screening my trades and updating my spreadsheet. ”
I came along to your presentation in Oct 2016. It was actually my husband who wanted to come but he was working overseas at the time, so I came as proxy.
Just to listen to you, without making financial decisions on my own.
“He is good, I like him - we might sign up some time in the future”, my hubby said.
So I was sitting there on a cold, rainy evening, listening to you, and things started resonating with me:
FOKAS! Focus on your goal , on where you want to go and what you want to achieve in life; the quality of life you want to have without being a slave to investment properties or even worse, risking great amounts of money into various get rich schemes, while balancing a JOB.
FOKAS, I thought! Focus on one investment approach that has proven to work, and that works if you apply it consistently without the need to put a big effort or a dozen hours per week to learn the skills.
That evening I made the decision to trust my instinct , my eyes and my logic, too. You see, we have a rule at home not to make financial decisions without consulting each other.
Guess what? I broke the rule! I thought - yep, sometime in the future we might join. But why wait? Why not act NOW?
Time is my most precious commodity.
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If I want to get a return soon, I’d better invest right now!
Was it a wise decision? Yes! (Hubby concurs).
Five months after we started live trading (we paper traded until April 2017), we got back my original investment –
TWO and a half times!
Working in a team (with your directions, with the coaches and office support) has helped us move steadily onwards and upwards.
So I am very pleased to share our results, which we see as humble this month (because we have been spoilt with some amazing percentage returns in some of the past 5 months) .
Does it give me a great satisfaction to look at our trading account? Yes.
Do I feel like I can trust the system and coaches’ advice - absolutely!
Below are our results for the month of October:
$546.00 1.82% in 15 days $1,390.00 3.26% in 10 days $819.00 2.48% in 4 days $1,200.00 4.50% in 31 days
And by the way, my vision for the near future is to replace my JOB income with my trading income. I am more than happy to replace 9 hours of work/day with 10 minutes of screening my trades and updating my spreadsheet.
What do you think?
With gratitude,
Elena
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The Workplace ChangedWhen did things change? Our society is changing all the time,
but the big changes that are effecting us today probably began
in the 1970s. The western world went through major social
changes. After the Second World War the old hierarchies were
being pushed aside and the working classes started to enjoy
the benefits of public education and basically there was a major
paradigm shift. The middle class expanded over the decades
and now there isn’t a ‘working class’ as such, so much as a
middle class with people below that, socio-economically, and
people above it who are not ‘upper’ class, which suggests some
kind of superiority, but rather they are the wealthy. Even people
with over a million dollars in assets don’t see themselves as
wealthy so much as ‘middle class’ in this country.
The kind of manual labour jobs that once were so available you
could literally walk out of one on a Friday and into a new one on
the Monday, have all vanished. Gone to Third World countries or
legislated out of easy reach for school leavers. Everyone needs
a Cert II or Cert III these days, no matter how menial the task.
‘Working hard’ is not really the same thing today as it was back
when I was a kid and remember, I never saw my dad because
he was always working hard. It still requires considerable
investment of time both in the commute and the extra, unpaid
hours many of us put in just to keep hold of our jobs in an ever
more competitive workplace.
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This is a workplace that favours youth, and once you hit 40 you are
on shaky ground when it comes to changing jobs or employers.
Past fifty you might as well forget about getting hired again
unless your skill set is so in-demand and the level of experience
you can bring is worth what the employer will have to pay for
you, compared to some just out of uni, twenty something. And
they are thinking about not paying the aged pension until you
turn 70? So if you find yourself unemployed at 50, you will spend
the next 20 years on NewStart (the ‘dole’ or unemployment
benefit)? That will never happen because the government of the
day will be hammered about the high unemployment figures,
so they will come up with some interim benefit to push people
onto, just as they have done with school leavers. Now they are
all on Austudy so they are not unemployed, they are studying.
The same scheme will be brought in for older unemployed
people only it will be called something different. Anything to
mask the real unemployment figures and take pressure off the
government of the day. Are you going to be relying on Centrelink
for your income in a few years time?
New Jobs, New Challenges
There are jobs advertised today that didn’t exist ten, or even
five years ago. Computerisation and the Internet have made
sweeping changes to the workplace and the way we work. Many
of us don’t really need to commute into a place of work, but could
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be just as effective telecommuting and working from home,
online. At least, up to a point. Studies show many telecommuters
soon resent the lack of interaction with colleagues on a face
to face basis. While it is more time and cost effective to work
from home, not having the chance to swap gossip over coffee
or meet at the water cooler means more to some than others.
Some people simply can’t handle telecommuting. We humans
are, after all, a herding animal in the main.
Australians do work hard and surveys in recent years put that
commitment at around 60 hours a week, even though most of
us are paid for 40 or less, 38 hours, 37.5, some just 35 hours,
and that is considered full time employment. Few would actually
do just the mandatory minimum, even those in waged positions,
paid by the hour in retail and hospitality, often find themselves
doing unpaid overtime, if only out of fear of losing their job to
someone willing to work for free, which is what unpaid hours
are. Too many of us are in situations where, if we lose our job, we
are one payday away from financial collapse and ruin. It is even
worse for many couples, mortgaged way over their heads and
both praying they hold onto their jobs so as to maintain funding
the consumer lifestyle so many today unwittingly support.
My dad was fortunate, in some ways, that he lived and worked
(hard) in an era where there still was some semblance of job
security. He only knew one way to make a living, and that was to
go to work for someone else and to work as hard and as long as
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you could. While this is honest and ethical and to be respected
(and I do), it is not necessarily the smartest or the most effective
way to make a living, and it never has been. The problem for all
those men and women like my parents is that nobody ever told
them it could be any different. Nobody ever told them how to
make a living working smarter, not harder.
Not Everyone’s An Entrepreneur
Not everyone has the entrepreneurial gene, or whatever it is that
sets those people apart. If we were all entrepreneurial, either the
world would be far more advanced than it is today in so many
ways or it would be anarchy! We need people who are plodders,
people who are happy to remain in the same job, doing the same
thing, day in, day out. We need people in our society who are
conservative, risk averse and more willing to suffer under what
they know than risk what might, or might not, be a better way.
We also need people willing to take risks, to chase change and
implement progress. It is this diversity that makes things work.
My dad is not the entrepreneurial type. He is not a risk taker
in the corporate sense. His advice regarding the stock market
is based on a lack of knowledge of how it actually works. His
advice is based on his observation of the people who invested
money and lost all they put in and more. His advice is based
on the gamblers, the speculators, the people little, if any better,
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educated about the stock market than he is. And he is right. Yet
I have never taken any of his advice regarding the stock market
and how to make money, ever, and I am far more wealthy than
he is or ever will be. Not only that, I don’t work anywhere near as
hard as he has all his life and my family see as much of me as
my hectic international speaking schedule allows, which is still a
lot more than I saw of my dad.
My dad says if you invest money on the stock market then you
are throwing it away. The only way to make money is to get a job
and work hard. In 1999 I owned five houses and wanted to obtain
finance to buy #6. The bank turned me down. I had a good job, I
owned other properties, all rented out and making money, paying
off their mortgages and never a payment missed. Nonetheless,
the bank wouldn’t approve another loan. I was reading all these
books along the lines of 10 properties in 10 years. I thought, if
they can do it, I can do it. Well that wasn’t the case.
I spoke to my dad about this as I was understandably ‘miffed’
and just wanted to vent. His advice was simple. Get a second
job. If I got a second job my income might increase enough for
the formula applied by the bank’s lending officer to give me the
green light and the bank would advance the money needed.
Then again, it might not. I might have to pay down some of the
other mortgages first, lower my commitments and outgoings. I
did a lot of number crunching and couldn’t see how I could get
a second job that would pay enough to make this work and not
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take up every spare minute of my life to the point where I did
nothing but go from job to job to bed to job, then collapse. Pretty
much as my dad had done on his one day off a week.
One Hundred and Sixty Eight
What if I could make money without swapping chunks of time?
Basically that is what most of us do. We develop skills that we
exchange for money, usually based on a dollar per hour rate.
I know if I work 40 hours a week at $25 per hour I can make
$1,000 per week, every week that I work.
Activity Hours x Days Hours
Working 8 hr x 5 days 40
Commuting 1 hr each way 10
Sleeping 8 hr x 7 days 56
Eating 2.5 hr x 7 days 17.5
Personal Hygiene 2 hr x 7 days 14
Total 137.5
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Then they take out income tax and of course it costs me money
to get to and from work and I have my living expenses to cover,
so there may not be a lot left over to save or invest. If I was
paid $50 per hour and made $2,000 a week, that doesn’t mean I
will have an extra $1,000 now. It just means my lifestyle adjusts
accordingly. Be honest; most of us have taken that pay raise and
spent it. If not right away, over time our expenses have always
crept up to match, and too often exceed, our income.
In any one week there are only 168 hours, no more, no less. We
all get the same ration, so it really is what we choose to do with
them that makes the difference. Won’t bore you with all that
motivational self-help stuff you can read in countless books; it
is all true and everything but this isn’t the place to rehash what
most of you no doubt are already aware of. So let’s get back to
our 168 hours.
This leaves just 30.5 hours per week, plenty of time for a second
job, right? I know, I didn’t put in any allowance for watching
television, talking to your spouse, playing with your kids or
anything like that. If I had added just 90 minutes per day for those
activities you would now have 20 hours left for that second job
that is going to make all the difference and elevate you into the
world of wealth and success!
If you make $25 an hour at your main job, how much do you
think you can squeeze out of this second job? Even if we make
this second job pay as much as our first one, we can only make
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65
a maximum of $500. $25 an hour multiplied by 20 hours is $500.
I realise $25/hour works out around $52,000 per annum, which
is a salary in the low to medium income bracket these days, but
let’s use this amount because there are many people making
that, and less, who can and do invest in covered calls and are
making a respectable second income doing so. Let us ignore
for now the reality that anyone on 52K is really not going to be
considered by a lending institution for a first mortgage of any
size, let alone a second one for an investment property, but bear
with me if you will.
The Second Job Myth Explored
Without the second job, our $1,000 a week nets us somewhere
between $700 and $800. On an income of 60hours x $25/hour,
we gross $1,500 a week, which attracts a tax deduction of $348-
$482, depending on how we go with our tax-free threshold.
Actually we could claim the tax-free threshold on the main job
and pay just $178 in tax, then pay the no tax-free threshold rate
on the second job’s $500, which is $126. So assuming we were
living off the first job to begin with, that leaves us $374 extra
per week to service the mortgage with. Out of that we need to
get to and from this second job, and there will be other claims
on the extra money so I have allowed a little over half the gross
income from the additional 20 hours of hard graft to be available
for investing in a property.
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We now have an extra, say, $260 a week; the bank is going to
love us, throw money at us, beg us to take out loans with them,
right? Maybe. Maybe not. Presuming you had the deposit, stamp
duty and other upfront expenses under control, at 5.88% interest
over 25 years, repayments of $260 a week are usually made on
a loan of $177,000. This doesn’t mean the bank will actually lend
that to you, remember my dilemma and I already owned five
properties! A loan of $177,000, factoring in the 5%-10% deposit
in cash, puts the property into the $185,000 to $195,000 bracket.
There is not a lot of property bringing in rental returns of $260
per week (neutral gearing) at that price. There is no way you
could positively gear the property in the Australian rental market
and more than likely you would be relying on a negative gearing
strategy to offset some of that 48% second job tax rate.
For those not familiar with the terms negative, neutral and
positive gearing, they refer to the return on an investment. If you
are negatively geared then it costs you more than it brings in. If
it is positively geared then you make money on your investment
and neutral gearing means you break even. If you have a rental
property bringing in $300 a week in rent, but the mortgage and
property management, rates and so on cost you $310, you are
negatively geared. If you are doing it right you should be able
to offset that $10 loss against the income tax you pay. If the
property brings in $310 you are neutrally geared, and $320
means you have to declare that extra $10 a week as income to
the ATO and are positively geared. Ok? Let’s continue.
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A Lot Of Effort For…
For that investment property you are working 60 hours a week,
plus commuting time. You have so few hours for yourself let
alone anyone else. Even if you are single and have dedicated the
next however many years of your life to this plan… how long do
you honestly think you can keep it up? If that second job was what
was keeping you and your family alive, then no doubt you would
hack it as long as it had to be hacked. So many bread winners in
the USA are working two, even three jobs, getting paid anything
from $2.25 an hour plus tips for some hospitality industry staff,
to just $7.25 an hour, minimum wage, for adults with families.
Many have only 30 hours a week full time employment and
rely on food stamps, ironically often spent at the same stores
that employ them on such low wages. They work the other jobs
just to make ends meet and have no concept of ever breaking
this poverty cycle. And this is the world’s wealthiest nation,
remember.
My recent trip to Greece with my family for 2 months opened my
eyes to the current crisis they face. I saw how average people
are struggling to make ends meet. University students were
earning 1 Euro an hour in jobs working 8 hours a day for 8 Euro.
When you take out rent, food, education, what is left?
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In Australia we have it a lot better. Our minimum wage for an adult
full time employee is currently around $16 an hour, but anyone
making that at a job, putting in 40 hours a week, is grossing just
$640 a week. If they got a second job for the 20 hours we have
decided are available to our hypothetical example, they might
gross another $320 before tax. Tax on the first job works out
at $55 and about the same on the second job. Let’s say you
take home $800 for 60 hours of work, plus however long it takes
you to travel between them and your home. If you are the only
bread winner you are going to be dependent upon Family Tax
Benefit A and B and any Child Care Benefit. This doesn’t mean
it can’t be done, the owning an investment property dream… It
just means you would have had to buy a place twenty or more
years ago before the real estate values in this country went into
silly numbers. Or you are looking at a little cottage in the wilds of
Tasmania where there is no employment for miles around to
provide a first job at minimum wage, let alone a second one.
Sixty hours a week is an awful lot of effort for not a lot of return
when you take into account factors such as quality of life, work/
life balance, seeing your kids, that kind of thing. That isn’t living,
people.
“If money is not that important to you that is why it is absent in
your life.” – Pat Mesiti
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It Takes Money To Make Money
It does indeed take money to make money. You can’t make
money out of thin air, at least not legally and not for long. Ponzi
schemes and pyramid clubs fall apart just like stock market
bubbles eventually burst.
If you want to make money in real estate you need a substantial
sum to begin with, to obtain the mortgage, cover the deposit, pay
the legals and the stamp duty, if in a state where it is charged.
It is not something you can do with, say, five thousand dollars. You
do have the equity of the property, or rather its value. If you buy
a $300,000 property and it remains worth that much, then when
you pay it off you have the property less what it has cost to buy
and own it; mortgage interest, taxes, fees, rates, maintenance,
insurance and so on. Real estate usually increases in value and
in Australia this has historically been between 8-12% per annum.
You can do the sums and factor in the increase in value against
the cost of owning the property and more than likely after ten,
twenty years you will be ahead. If you invested the same amount
of money in the stock market, most experts will assert you would
have made around the same gain, 8-12% per annum.
There would have been some periods of loss, perhaps even great
loss, but overall and over time the result would be pretty similar.
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Whereas you can get into property with, say, $30K on a $300K
property, allowing 5% deposit and all your other expenses taken
care of, $30K of blue chip stock isn’t going to get you to the
same place ten years down the track. This is one reason many
people don’t just buy and hold stock, they speculate with various
strategies such as Forex, Commodities, E-minis, CFD’s, Futures,
Options, puts, calls and all sorts of risky products. They gamble,
in other words.
If you used that $30K the way I would, you can reasonably expect
to bring in on average 20% - 40% per annum in ROI. Yes, that’s
$6,000 on 20%. The next year you invest the $36K, generate
approximately 20% - 40% per annum, 20% will increase your
$36,000 to $43,200 at the end of your second year of covered
calls. $51,800 in year three. $62,160 in year 4.
As you can see you have the potential to double your money in 4
years. Meanwhile, your sibling who bought that fixer-upper with
their $30K is still having tons of fun with the tenants, the repairs
and the repayments but hey, they can’t lose. They’re in bricks
and mortar, right?
Your other sibling, the one that knows everything about the stock
market, lost their $30K within a few months on some options
that didn’t work out. Hey, that’s the stock market, right?
Before you toss the book away in disgust, let me explain about
the 20% ROI. That is just 1.7% a month, every month. If you make
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2% on $30,000 in a month, that’s $600. Do that 12 times a year
and you have $7,200, or 24% of $30K. The numbers don’t lie. Of
course, some months you might not make 2%. You might make
4% but I doubt you will make more. You will make somewhere
between 1.5% - 4%, a month.
You either tell Money where to go, or wonder where it went!
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“My dream has been to retire by the ocean which we are now going to do.”
My name is Shirley. A huge thanks to you and your coaches for being so very supportive. Keep up the long emails.
I joined FB in March 2017 when attending my second information session. How I wish I had joined after the first one months earlier!!
I did paper trading for quite some time alongside small live trades until I felt confident to just go totally “live”.
My husband supports me in this and because of the success in the trades and percentage profit made from the money invested, encouraged me when renewal time came up this yea .
We live on a farm 80km from town where our internet can sometimes be unreliable, but your coaches have worked around that as well.
My dream has been to retire by the ocean which we are now going to do. Thanks to this system , the money I am making will pay for the expenses of living in the unit as our farm has not yet sold.
I started with AUD$10,000 and have increased this to AUD$50,000 as I can see the value/returns in having larger amounts in the market spread over a few trades.
Since January I have made over US$7 ,000 profit in 149 days (we were away for 5 weeks and I did nothing in that time - so really 114 days). Annualized this equals 55% return.
Absolutely happy with that!
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This is the trade that I am so excited about:
Bought 27th February and did a buy/write.
It expired and subsequently I wrote 6 calls before being assigned on 12th May.
Profit in 74 days $2820 or 15.2% which = 77 .2% annualised.
This strategy just seemed to work for me.
• 9 days 1.95% profit = 89.2% annualized • 8 days 2.4% profit = 111.2% annualized • Still open and expecting 4.91% for 4 days
= a whopping 448% annualized • Still open & expecting 2.38% for 9 days
= a whopping 96% annualized
The banks just don’t give returns like this.
So, thank you for introducing me to this strategy of writing Covered Calls. It has opened up a new way of investing - creating the market, and the retirement lifestyle to follow :)
Yours in abundant success (and a decent golf handicap in the near future),
Shirley
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Let’s Look At The Bottom LineIn this case, by bottom line, I mean the lower ROI, 1%. One
percent of $30K is $300. If you make that every month, in a year
you will have made $3,600. 12% ROI, the average upper limit
most experts claim you can make from real estate or buying and
holding on the stock market. Investing in covered calls the way I
advise, you are more likely to make the 2% - 4% than the 1% and
even if you average it out at 3%, a month, that is an annual ROI of
36%! $10,800 in your first year. If you put that back into the kitty,
the next year your $40,800 will bring in $14,688.
The best thing about this method of making money is that you
don’t have to slave away at that second job! Your investment in
time is minutes a month and there are no tenants to worry about,
no rates to be paid and no repairs to be authorised and paid for.
If you do take that second job and sock away $260 a week it will
take you a little over two years to get your $30K together but
the great thing about this method is you don’t need that much
to begin with. You can begin making a second income with just
five thousand dollars.
Five grand these days isn’t much. I know it is a lot of money if
you don’t have it but if we look at this rationally, what does five
grand get you in 2014-2015 dollars? Anyone with a credit card is
likely to have a limit larger than $5,000.
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You can borrow that as a personal loan for, say holiday expenses
and it will cost you maybe 10% to repay, let’s call it $5,500 all up
over 12 months. If you were making 3% ROI, you would make the
interest payable on the loan in just over 3 months.
Then you have 9 months to make some money for yourself and
at the end of the year, sell off the stock (preferably for a profit)
and repay the loan.
3% of $5,000 is $150. In the 9 months the stocks are working for
you and not whoever loaned you the five grand, you will make
$1,350 (less brokerage of course). An additional $1,350 a year
for say, twelve hours work, isn’t bad and once you are set up it
shouldn’t take more than an hour every month to manage your
investments.
That works out at a rate of $112.50 per/hour. That hourly rate,
worked out at 40 hours a week over 48 weeks in the year delivers
a gross annual income of $216,000.
To earn that kind of income you would need an investment
of $600,000 earning the average 3% ROI a month. The rental
income on a $600,000 property would be around $500 per week,
depending on where the property is located; about $26k per year
before you pay the rates and all the other expenses incumbent
with real estate.
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Real Estate, Risk or Covered Calls?
So if you had $600,000, which would you rather invest in? A
house requiring tenants, rates and repairs; or stocks that can be
managed an hour a month and bring in ten times the income?
If you put it into the stock market, would you be happy making
a steady 1-6% (3.5% average) or would you listen to your broker
and go for the big money, the 30% or more ROI per deal gamble
through puts, calls and whatever else he can charge a fee to
broker for you?
Stock brokers make their money every time you make a
transaction on the market. They charge a brokerage fee for
every sale or purchase they handle on behalf of their clients. In
Australia that fee ranges from around $40 to over $100. In the
USA, where there are more brokers and more transactions on
more boards, the fees are a more reasonable $8.95 - $20 or so.
If the broker has one hundred clients on his books, he needs to
have as many of them buying and selling every day as he can.
He wants them playing the options game and buying puts and
calls, trading options and securities and especially ‘day trading’.
He loves people who spend their every waking hour online,
monitoring the minute fluctuations of stocks.
Remember, 95% of people who invest in the stock market do
so in one of two ways. They buy stock and do nothing with it,
known as buy and hold. This is fine, to a degree.
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If you choose the right stock it will certainly increase in value over
time, most stocks do. Good stock, known as ‘blue chip’ stocks,
are pretty much always going to increase in value over time. Of
course, some blue chip stocks can crash and stay down but if
you have a good, well thought out portfolio you can minimise the
risk considerably.
The other way people invest is to speculate, or gamble. They
play the options trading game and buy puts and calls and work
the odds and the angles, as if they have some special insight
into the vagaries of the market. Like gamblers the world over,
they win some, they lose some. Some win a lot for a long time,
others tend to lose from the outset, and most do a little of both.
The only people who win when an investor speculates and
gambles on the market are the brokers. They make their money
whether you win or lose. The good ones do try to help you win
more than you lose but it is not being overly cynical to suggest
that is because the more you win, the more you’ll have to spend
with them.
The same can be said about real estate agents. They work for
both the vendor and the buyer, so surely there has to be a conflict
of interest inherent in the relationship right from the start. You
can see why some people use their own agent to look after their
interests when buying a property, someone who has nothing to
do with the vendor and is paid by the buyer.
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An agent who lists the property wants to sell it for as much as
they can because the more they get for the vendor, the bigger
their slice. How can they be working in the best interests of the
buyer?
There are other trips and traps of the game that irk me, like the
‘vendor bid’ used in some states when auctioning a property.
The vendor (i.e. the seller), doesn’t like how little is being bid for
their property so they put in a ‘vendor bid’. Now the bidding has
moved up and the silliest thing is this tactic often works to get
bidders going again!
In the stock market there are brokers who educate their
clients, but most prefer to have them rely on them for advice
and expertise and that is understandable. Many brokers have
invested a lot of time and money in educating themselves and
deserve to be fairly compensated for this knowledge, just as any
expert or consultant should be.
Some, however, do exploit the lack of education in stock market
matters of many investors and neglect to tell them of their full
range of trading options, such as covered calls. My argument
over many years has always been that if a fund manager really
knew how to make money, what are they doing in a job?
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Who Do You Trust?
This is a good question. When it comes to anything to do with
the stock market, don’t trust my dad. Not because he isn’t a
trustworthy individual, he is and he is as solid as they come.
He just knows nothing about the stock market other than it is a
place to lose your money. Are you going to get in-depth, unbiased
and well considered advice as to how best to invest your savings
from him? I don’t think so. Will you get in-depth, unbiased and
well considered advice from a real estate agent when looking
to invest in a property? Again, the answer is either a straight ‘no’
or a ‘maybe’ at best. If we asked the question of a stock broker,
we also couldn’t trust his advice completely as there is a fair
chance he will slant his opinion towards using his services as
much as possible, and the same can be said if you were to apply
this question to me.
Of course my advice will be biased. Biased towards what I believe
is the best strategy, covered calls. Yes, I make my living in part
through helping others make money through covered calls. This
book is all about covered calls, so logically, simplistically, how
could anything I have to say not be biased towards that agenda?
Which is not necessarily a bad thing, nor is it for real estate
agents and stock brokers. So long as you are awake and aware
and accept that the advice you are given is nearly always going
to be trying to lean you one way or another.
So, who do you trust? You trust yourself. Backing yourself every
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time is something I truly believe in. You know yourself better than
anyone else, and if it came down to a toss up between you and
whoever else, you know your own capabilities and limitations
intimately; so back yourself. How do you do that when it comes
to making very important investment decisions? Simple. You
get the best education you can, then you apply what you have
learned and away you go.
Education is not only about classrooms and diplomas. You get
an education in Life through living everyday. You can get an
education in investing through reading books like this, attending
seminars and training courses, and making your observations
and analyses. You can get an education in how to do it the
wrong way and that can be quite an expensive learning curve.
Remember back in 1999 when I wanted to buy another property,
the bank wouldn’t lend me the money and my dad’s advice was
‘get a second job’? Well, I didn’t take that advice. Instead, I got
an education, applied the lessons I had learned and lost a ton of
money. Let me explain.
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“4.86% Profit in one just one month”My name is John,
I joined the Fokas Beyond family in 2015 but with other distractions and the lack of fokas to study how the strategy worked I procrastinated for over a year, even after doing two Melbourne boot camps.
In April this year it was realised that my triad of 35 years in horticulture and my own business of 14 will come to an end in March 2018.
Push came to shove. I had to do something to earn an income. Up until then the only way I knew how earn income was to physically dig a hole and plant a plant.
So I applied some ... fokas ... commitment, studying the education and began practising paper trading in April 2017 for a few months.
I quickly saw the potential of creating an income, and how things came together. I wasn’t going to become a millionaire over night or a few nights but in a couple of years I could create a comfortable income. In July 2017 I went live.
I was very nervous trading with my hard earned. Everything became real. I started small to test the water and each month putting more money Into my trading account. Reviewing what I was learning and talking to the coaches.
“Its still a work in progress but man am I making progress.”
This is a sign I have in my office that speaks volumes.
There is some uncertainty of what next year holds for me as my business will be finishing end of March 2018 and no concrete direction of the next stage of my life.
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Developing the tools and understanding of Cover Calls I can see how I can create an income using George’s education freeing me to finally pursue my life’s mission and not just a job to pay the bills.
The surprising thing is I’m really enjoying the covered call strategy, studying and implementing the education, moving money around and most of all .... the money I’m making!
October expiry was an amazing month for me, beyond my expectations and I’m sure not the norm, but I’ll take it. 4.86%.
November expiry was another great month, 3 positions with the following returns.
2.97% for the month and the position is still open.
2.6% for 4 days and the position was exercised.
3.2% for 11 days and the position was exercised.
Thank you George and to the crew you have put together for your support.
With the deepest respect and regard thank you for what your doing..
Regards
John
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Getting The Wrong Kind Of Stock Market EducationWhile I was going through this situation with the bank,deeming
me worth lending to for properties #1, #2, #3, #4 and #5 but not
for #6, I had one of those light bulb moments. I was on the train
going into work and next to me on the empty seat was that free
magazine they handed out back in the 90’s called, ‘Nine to Five’.
Something drew me to the back page, or perhaps I just picked it
up back to front, however it happened, there was a full-page ad
on the back page that headlined with, ‘Come to our event, learn
about the stock market and cash flow!’ I remember thinking,
‘this is brilliant!’ It was exactly what I was looking for, because
I needed more money and I knew it was better to work smarter
than harder, and there was no way I was taking my dad’s advice
and getting a second job.
I knew, even back then, that most people simply don’t do
anything. They bemoan all sorts of issues and problems plaguing
their lives but do they do anything to change things? No. They
procrastinate. They make excuses, what I call ‘excusitis’. They
will happily find one hundred reasons why something wont work
rather than just one way it will. Like the 95% of stock market
investors being nothing more than speculators/gamblers, the
same ratio applies to taking action and changing your status quo.
95% of success is simply turning up. Doing something, anything,
taking action. That leads to change and, while sometimes it
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might be the wrong change or the wrong action, so long as you
keep taking action you will eventually get where you want to be.
At the very least, you will no longer be back there in the middle
of all those problems!
So I took action. I called the number on the ad and I made a
reservation for the training seminar they were offering. Not only
that, I actually attended. It was huge, a three-day event with
numerous powerful, motivated and motivating speakers up
there on the stage, extolling the virtues of the stock market and
how you can make huge fortunes if you learn what to do. They
assure the audience that anyone who undertakes their training
program can make 20%, 30% ROI overnight! Some even showed
examples of how they made 100% and more, overnight! I was
going to be rich! A millionaire. Overnight. Well, not quite. I had to
buy the program, then learn it and of course, most importantly
of all, apply it. Do it, in other words.
We Will Do Nothing To Avoid Failure
Once again the 95% rule can be applied, because I imagine 95%
of those who attended the seminar never bought the program.
They would have gone home to speak to the spouse, parent,
sibling, friend whoever. They would have dreamed themselves
unworthy of success and denied themselves the chance to
make their dreams come true. It is so much easier, so much
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less risky and so much more certain to not try, to not take action
and to not risk failing and just not do anything. If you do nothing,
that’s not failing, surely? You can only fail if you try and we are
conditioned from early childhood that failure is bad. So we fear
it.
It is a maxim of Neuro Linguistic Programming (NLP) that we
will do more to avoid pain than to receive pleasure. Failure is
programmed in to us as being pain and it is more of a stimulus
than the pleasure of success. Hence we will do more to avoid
failing than we will to achieve success. By simply not doing
anything, not taking any action at all, we avoid failure. I know, we
succeed at not failing by not succeeding… it is bizarre but that
is human nature in a nutshell. For most of us. For 95% of us.
But when we take action, we join the other 5%. As I have already
said, taking action is better than doing nothing, but that doesn’t
guarantee the action you take will be the correct action.
I spent $10,000 in 1999 and began learning all about the
stock market and how you can make a fortune. I was hooked
on learning about this ‘sure-fire’ way to make money. I was
so hooked, I signed up for another event. Then another, then
another. In less than six months I had attended four major stock
market training seminars and invested $40,000 in training. I then
went ahead and applied all I knew and lost $70,000 in the first
twelve months of trading.
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Basically, I had purchased a very expensive education in how
to lose money on the stock market. I was being trained to
speculate, to gamble and so that is what I did. I gambled my
money away. I traded options, Forex (foreign currency exchange)
and commodities and I lost the lot. At this time I was building a
house and in the process of getting married, so you can easily
imagine how impressed my future wife was with my stock
market activities!
Sound Advice Finally Makes Sense
What finally dawned on me was that I was doing what someone
very wise in the ways of the market once told me most people
do: I was trying to predict where the stock would go when I
should have been ‘creating’ the market. Sound advice I had been
given some time before finally made sense. Rather than react to
what had already happened and try and guess what that would
do going forward, I needed to put myself in a position where I
created the market for my stock. Let me explain.
I had met Rene Rivkin through my job and attended seminars
where he presented information about making money, mostly
through the stock market. There is no doubt in my mind Rene
was one of the sharpest business minds this country, if not the
world, has ever known. There was some controversy at the end
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of his life but I for one refuse to judge this man on one incident,
but rather on a lifetime of achievement and philanthropy.
Rene said that approximately 95% of the people involved in the
stock market are speculators. They speculate the stock will go
up or down and then gamble accordingly. What you needed to
be, if you were to make money from the stock market, was one
of those that made the market. By that he meant, you create the
options for others to speculate on. You buy good stock, create
an option and then sell that option. You make your money on the
sale of the option regardless of what happens to the stock itself.
You make the market. You profit from the entry, not the exit.
I realised, at last, what he was telling me and it made perfect
sense. I had my ‘epiphany’ after the fourth seminar I attended
and paid big money for. This one offered attendees all sorts of
great support and advice, but the reality was we never got to
talk to the ‘guru’. All we got was a 1-300 phone number and the
direction to call them only after we had read all the material and
educated ourselves on the system. Basically we were made to
feel all excited and special, then fobbed off to a call centre where
people who knew less than I did read off a script for all I know
and pretty much told us nothing worth a fraction of what we had
paid. You can imagine then, the reaction of my wife to be when,
after another train journey and another copy of Nine To Five, I
discovered a fifth training seminar I just had to attend!
This one was written differently, used different fonts and colours
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and said ‘Cashflow, come to our seminar, learn about the stock
market.’ By the time I got to work I couldn’t wait to pick up the
telephone and register for the event to be held in two weeks
time. When I got home that evening I asked my fiancée what
we were doing in 3 weeks time. She asked me why. I explained
I have 2 tickets to another seminar. You can just imagine the
anger building up when she heard that. I had been to 4 seminars,
outlaid $40,000 to lose over $70,000 within 12 months. Her
response was “Over my dead body!” I persuaded her to let me
go.
“Honey! This is different! I just want to do this.” “Okay, but promise
me one thing.”
“What’s that, honey?”
“Promise me you’re not going to invest in anything.”
“Honey, I promise.”
When I arrived at the seminar it was all singing, all dancing
with highly energized speakers leaping around the stage selling
speculative strategies. The same old, same old in other words.
It was while I was sitting there Rene Rivkin got up on stage with
his son to discuss the markets and what he had to say made
crystal clear sense. Forget trying to guess what was going to
happen, create the market.
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Own the stock people want to option and get paid for creating
the market with options no matter what happens to the stock. It
was another investment I made in myself, $10,000 for another
educational program.
I raced home to tell my fiancée how I had had an epiphany, a
‘light bulb’ moment. I knew what I had to do and how I had to do
it, and I was going to begin that very day. She was not impressed
to say the least. I made the decision to do it. No one was going
to stop me.
I invested $10,000 and bought some stock, then I created the
options and sold them. I made the market. That was in late 1999
and by 2003, now married and just 28 years old, I semi-retired. In
the four years in between,
I still had my regular job because I knew this was going to take
time to do properly. I still had to eat and keep myself and my wife,
and pretty soon our kids, fed, clothed, housed and happy. I also
invested in other businesses to diversify my income streams
and build my various pillars of income.
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No More Excusitis
The biggest failure you can have in life is making the mistake
of never trying at all.
I had decided I was going to become wealthy, and I was not
going to get there slogging away at two or three jobs. Working
for wages never made anyone rich and only a few better than
merely ‘well-off’, whatever that means in real terms. To make a
good living and to build income streams for the future you need
to do more than just swap your time for someone else’s dollars.
You need passive income from streams that are making you
money 24/7, whether you are there doing anything or not. One or
two of these can lead to three or four, and pretty soon the force
multiplier steps in and you are making serious coin doing very
little in physical terms. All the work is done planning and setting
things up and then getting them into motion. And that is the real
secret. You could stress about what could and the negatives
and this will hold you back. What happens if the negatives your
conscious mind is giving you never manifest? You have missed
another opportunity.
Too many people fail to do anything. They simply fail to take
action, any action. They do nothing and still wonder why nothing
in their life has changed. I know I have said this already but I am
saying it again because it is so important and really needs to be
carved into your psyche so you accept, acknowledge and apply.
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Accept that for anything to happen you need to make changes
to what you are doing now and how you do it.
You need to acknowledge that change is good, change gets
things moving and that not doing anything is not the way
forward. You also must apply your actions, do something every
day that makes things change and happen. No matter how
small, doing just one thing differently or in addition to what you
usually do will make a difference. If you get in the habit of doing
something new and different everyday, no matter how small or
trivial, you will notice some major changes happening in your life
also. Good changes. I did.
As soon as I started to invest in the stock market with the
mindset of making the changes happen, I felt empowered and
very much in control. I was no longer speculating, I was investing.
I wanted stocks that people were chasing because they were
good risks with potential to make them some ridiculous amount
of money overnight. I was creating the stock market for others
to speculate and gamble on, and I was making money from the
very start.
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J.O.B.When I left school I didn’t have the marks to go to university so I
got myself a job. I like to write it J.O.B.; jay-oh-bee. According to
the website ‘Urban Dictionary’, a job, or J.O.B. is:
‘The means by which at least 30% of your life is stolen from you
to enrich the owners of a company making useless shit that
some other poor idiot in a job will buy.’
Many call it Just. On. Broke. The next time you are sitting at the
traffic lights on the commute to work, or riding the train or bus,
have a look at the people around you. Don’t worry about whether
they are happy or sad because happiness is a choice, and you
can be happy even in the worst situations if you choose to be.
No, look at each of them and ask yourself what is it that they do
to earn their salary or wage? What do they offer in return for the
money their employer pays them every pay day?
If they work in public service then the money comes from
consolidated revenue, the taxes we all pay, including the public
servants themselves. If they work for a private enterprise
employer then the money comes from the income they help
generate by whatever it is they do. The public servant might
not have the same pressures put on them to be profitable but
they do need to work to budgets and achieve goals. They can
lose their job through non-performance, but not as easily as in
private enterprise.
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The biggest risk to job security for the public servant is the
next round of government job cuts to the public sector. It might
seem incongruous that one year the government of the day are
cutting thousands of jobs in the public service and then a year
or so later they are expanding the very same departments to
increase capability and efficiency. If you look back over the past
few decades you can see this happening over and over again, no
matter which party is in power. It makes you wonder what they
were thinking last time they either cut jobs or ‘created jobs’.
And that’s another thing to think about for a moment. Do
governments ‘create jobs’? They always shout this from the
rooftops, but do they create jobs? The only jobs the government
can create are in the public sector and we know in a year or three
they will cut those very same jobs when it suits them. They
can assist in creating an economy that is conducive to private
enterprise taking on more risk and expanding their operations
and workforce accordingly; but they don’t create those jobs.
They do this by investing in public-private partnerships on major
infrastructure projects such as toll roads and bridges, or by
offering tax incentives to corporations that set up operations in
the state or country the government is responsible for. That’s
about it.
Having a J.O.B. is a dodgy affair these days. Prior to the 1970s
there were such things as a job for life, and people did leave
school at 15 or 16 to start work the following Monday at the
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factory or office where they would remain until retirement fifty
years later. Since the 1970s, societal changes have been massive
in many ways and the decline of the concept of ‘job security’ has
accelerated to the point where it is a two way street. Employers
no longer expect an employee to stay longer than 2-5 years,
and many look with suspicion on a CV that has the prospect of
sticking with just one or two employers over many years. The
career change every couple of years is no longer looked upon
as a lack of loyalty or staying power, but recognised as a viable
tactic for advancing one’s career. More money means more
work the employer wants you to do.
From 1993 to 1996 I worked at my J.O.B. All I did was work,
work, work… just like my dad. I worked hard and saved my
money, and in 1996 I bought my first property. By 1999 I had five
properties and it was then, as I was turned down for a loan to get
my sixth property, that my life truly took a change in direction.
That was when I invested $40,000 in a stock market investor’s
education that enabled me to lose $70,000 in the first twelve
months. It was also the time when I finally learned how to really
make money on the stock market and set myself up so that I
never had to swap my hours for their dollars, ever again. It was a
strategy that banks, institutions and fund managers around the
world at times implemented.
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Some Truths About J.O.B.s
Don’t get me wrong. Jobs are a good thing. We need people
working in the public service. We need people in private
enterprise. We need everyone doing what they do to make
our world turn, to keep our society working as it is. Everyone
has a role to play and we need to keep very much in mind that
whatever it is that person next to you on the train does to earn
their income, someone thinks it is important enough to pay
them to do it.
As an employee, what you do must, in some way, is contribute
to the success of the company. If you don’t, then it won’t be long
before you lose your job. Let’s face it, if the role you fulfill isn’t
helping, it must be hurting. You are a cost to the business and
therefore you need to justify that cost by contributing to revenue,
somehow. It is clear for some; sales people can quantify their
contribution by how much they sell. Even factory production line
workers can claim they are contributing to profitability based
on how many items they make every hour, or however their
productivity is measured.
Your tenure is not something you have complete control over.
You might make five times the number of widgets per hour
than anyone else, but if the other workers aren’t doing their job,
it could come back and bite you. If the sales department isn’t
selling enough or the market simply moves to a new product
from a competitor, you could be laid off, made redundant, down-
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sized, whatever term they use… out of a job. It is a dog eat dog
world, after all. If you are not contributing to profit then you are
an expense. Even if you are contributing to profit, something
might change and your services become no longer affordable or
cost-effective through no fault of your own.
Think about all the manufacturing companies in this country
that no longer exist because they have been moved offshore. It
is cheaper to make the products overseas and freight them back
here than it is to manufacture in Australia. Corporations look at
the bottom line and decide if they are making enough profit or
not. If not, they are only too happy to restructure operations to
get back into the black, despite what that means to you, the loyal
employee.
The Four Types Of Income Earner
According to Robert Kiyosaki and his Cash Flow Quadrant™,
You are either an employee, a self- employed person, a business
owner or an investor. His trade marked concept has a cross with
the employee and self-employed on the left, and the business
owner and investor on the right. The ultimate position to be in,
according to Kiyosaki, is in the bottom right quadrant as an I, or
investor.
We have already seen the risks associated with being in the
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top left quadrant, the E or employee sector. You are existing,
vocationally speaking, at the whim of your employer and the
market. You could lose your job at any time and, if enough people
who do what you do lose their jobs at the same time, the odds of
finding another job are pretty slim.
A good example of this is the demise in newspapers in the
USA and also here in Australia. Since the advent of the Internet,
newspapers have struggled to keep providing content worth
paying for and more importantly, for how print media makes its
money, worth advertising within.
More and more people get their ‘news’, or what passes for news
these days, online. They also search for and find what they want
to purchase online, and the phenomenal growth in social media
has accelerated the demise of the print media platform.
Consequently, newspapers have closed their doors and the
journalists working for them have had to find other work.
Several thousand newspapers in the USA alone no longer exist,
gradually disappearing since the early years of this century. Tens
of thousands of experienced and highly skilled writers are out
there competing for the jobs available online.
So much content is produced for free by users, people like you
and me using the web, social media and so on.
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Advertising facilitators like Facebook and Google leverage our
free content to provide access to potential customers, selling
off this information and access to advertisers and basically
doing away with the need for people to buy newspapers or print
magazines for their information and advertising.
Many of these former journalists tried to get writing work online,
only to find much of the work being offered paid pennies and
was snapped up by writers, with English as a second language,
from third world countries where they could live well on a few
dollars a day.
Most people, when thinking of jobs being lost overseas, think
manufacturing, yet so many jobs in other industries have
disappeared also. Customer service jobs are now handled by
massive call centers in India, the Philippines and elsewhere.
Content creation jobs for writers and graphic artists are also
sent overseas where rates are much cheaper due to lower costs
of living and much lower standards of employment. When will
your job be the next victim of globalization?
Even service jobs that can’t leave our shores, such as retail or
hospitality positions, are not completely safe from being eroded
as penalty rates and other Award requirements are legislated
out of existence.
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Buy Yourself A J.O.B.
A self-employed person is little better off simply because all self-
employed means in real terms is you have bought yourself a job.
If you are not available to perform the work you are being paid
to perform then you don’t make any money. Lawyers, doctors,
accountants, trades- people are all self-employed. If they do
not market themselves and chase the work they will soon not
have any work to do. Few who go into business for themselves
realise that they are now solely responsible for bringing in new
business as well as doing the business.
They are, indeed, their own boss, but they now have a client
or customer who takes on the role of a boss and is often a
far harsher task master. If you get it wrong they can easily kill
your business by word of mouth. While many believe word of
mouth is the best advertising, it is only of any use if the people
hearing the word take action at some stage, preferably sooner
rather than later. The reality is that bad words travel further and
farther than good ones, and if your business gets the ‘stink eye’,
as some call it, it may never recover.
If you are ill, tired or have to attend a funeral, you aren’t making
money. Your time is your own, providing you don’t have an urgent
job to attend, a client calling you at mid-night because they are
up and so you should be too, otherwise you are not truly client
responsive and on and on it goes. Being your own boss is often
not what it is cracked up to be. It takes a lot of work because,
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not only must you work IN the business doing whatever it is you
do that people pay you for, you need to work ON the business
getting new clients, doing the paperwork, sending out invoices,
chasing slow payers and all the other bits and pieces. You will
never sack yourself, but your clients might. You are not out of
the woods yet, are you? So why not own a business and have
others work for you?
Being The Boss
Being a business owner means, according to Kiyosaki, that you
could walk away for a year and the business would continue to
operate, make money and carry on day to day activities. This
means you have a manager and staff in place, and the revenue
of the business is not reliant on something you do personally; like
perform minor surgery, represent a client in court or fix their tap.
You can run a medical practice and hire doctors to run the clinics.
You can own a legal practice and have a bunch of solicitors,
legal secretaries and so on. You could hire some plumbers and
carpenters, a manager, secretary and a sales manager, and you
have a building trades business. None of those are reliant upon
you actually doing any of the tasks that create revenue.
Think about it this way. You own a company that makes and
sells widgets. The only money you have, now you have used up
your starting capital, is the revenue earned every time someone
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buys a widget. The money from the widget sale is broken into
two lumps. One lump repays what it cost to make the widget
and sell it, and this money now funds the making and selling
of a new widget. The other lump of money is the profit. This is
why you are in the widget business. If there is no profit, there is
little point selling widgets unless you pay yourself out of the first
lump. If you do that then you really just bought yourself a J.O.B.
when you started the widget company. If there is nothing extra,
no dividends for share holders or bonuses or ‘cream’ to make
you a wealthy widget maker… why do this?
Why have the headaches and sleepless nights? Why worry
about whether your competitors will get the edge and make a
better widget, leaving you so far behind that people start calling
you the Nokia of widget makers. That happened to Nokia, once
and for several years the leading, number one brand of mobile
phone manufacturers in the world. The problem was, they had
nothing ready when new technology unrolled smart phones, first
with Blackberry and Apple’s iPhone, and then the Android based
units from Samsung and so on. Now Blackberry are struggling,
locked in as they are to their operating system. Your widgets
might suffer a similar fate, so part of the second lump, the profit
lump, needs to be sunk back into the business under the heading
‘R&D’, or research and development.
As the business owner, cash flow might be a problem. You pay
out a ton of money to buy your raw materials and every week
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or month your staff need to be paid but it takes time to make
widgets and more time to sell them and then you have to wait
for the customer to pay their bills but all the bills you have to
pay, all the outgoings you must honour, don’t wait. There are
businesses that have been hugely successful yet closed their
doors and declared bankruptcy simply because cash flow in did
not keep up with cash flowing out. As the business owner, you
are where the buck stops.
Others choose to buy into existing businesses, coffee shops,
take-aways, corner stores, franchises etc. They buy ‘good-will’,
outlaying hundreds of thousands of dollars, or even millions, in
the hope that the ‘goodwill’ will return, with no guarantee. Is this
another form of gambling?
I For Investor
The position to be in is the bottom right quadrant, the ‘I for
Investor’ sector. This means that you earn your income by
making your money work for you. You do need to have money
to invest and put to work, but you might have inherited it, earned
it and saved it from your J.O.B. or own business. However you
came to your initial investment, by moving into the I sector you
are earning what we call ‘passive income’. You aren’t out there
swapping your time and skills for someone else’s dollars. You
make money while you eat, sleep or go on vacation. You do
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something initially to set up the investment, but then you virtually
leave it to do its magic and you get on with your life. You invest
in other things or, in the early days perhaps, go to your J.O.B. to
make more money to invest.
This is the position so many strive for when they decide to invest
on the stock market. Instead of being investors making passive
income, they become speculators, gambling their capital on
where they think the market might go, too often losing more
than they make.
The alternative is the ‘buy and hold’ brigade who think they are
being streetwise and stock market savvy by buying blue chip
stocks and simply letting them increase in value over time. Too
often, over a very long time to iron out the peaks and troughs of
daily trading.
While the buy and hold brigade are playing it smarter than the
speculators, they aren’t being as smart and as streetwise as they
could be and they are missing out on an enormous amount of
wealth generating potential by not putting their money to work.
If they offered options on those stocks in the form of covered
calls they could still enjoy the long term growth of the stock’s
value, but they would be making money on the stock they hold
each and every month. Of course, they may have to sell the stock
if it makes strike and the option is exercised, but so what?
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Plenty more blue chips out there to buy and, while holding,
earning income off the stock while allowing the market and the
stock to do whatever it wants. I teach an income strategy, not
a volatility strategy. Speculators trade volatility trying to predict
which way it will move in the hope to make money. Earning
income on stocks irrespective of which way they move is the
smarter way to invest.
The other kind of investor isn’t a true investor because they work
the market every day, just like a J.O.B. Often referred to as ‘day
traders’, these are people who watch the rise and fall of stocks
on a minute by minute basis in some cases and at least an hourly
basis overall. They buy and sell and trade several times a day. Of
course each transaction, or trade, costs them a brokerage fee
but they factor that in to the cost of doing business.
Many of these day traders follow the smaller boards and play
with the ‘penny dreadfuls’, as the cheaper, often just released
stocks are called. They can make good money, but they can lose
it too and, they have to be online and working the numbers all
the time. More an ‘S’ for self- employed than an ‘I’ for investor.
The true investor buys their stocks, then offers options and
leaves the market to get on with what it does while they do other
things. Every month, on the appointed day, they manage their
covered calls and set up new ones, sell the stock if it made strike
and buy new stock. Then they go back to doing whatever it is
they wish to do.
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Their money has been made, revenue earned, income received
and all while they were off doing the things that make life so
enjoyable. For some it is being with family, for others perhaps
going on vacation and yet many have jobs or run businesses:
not because they have to but because it is what they love to do.
The difference is they are not chained to the J.O.B. or business
because that is what pays their bills. They can live off their
investment income if they choose and anything else they do,
whether it makes additional income or not, is their choice.
Now, how would you like to be in that position?
How would you like to be an ‘I’? The great thing is, you can be.
The more you have to begin with, the sooner you can live
completely off your passive income derived from your
investments on the stock market and the fact you make them
work for you with covered calls.
Even if you have just a few thousand dollars to begin with, you
can start making passive income and working towards one day
being an ‘I’ and saying goodbye to a J.O.B., working for yourself
or even the headaches of providing other people with J.O.B.s.
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“Our aim now for both of us is to give up work in a JOB where we work for others and start to do things on our own terms.”
I’m Michelle, me and my husband are working together to make our dreams come true.
It all started back in September 2018 when my husband had finished FIFO work and he was looking for other ways to invest and make a living.
We are not going to be one of those people that solely relies on the government handouts, especially in retirement.
My husband dragged me to one of your 1-hour seminars in Brisbane. I have been in the banking industry for a long time and understood the whole investment/percentage thing, the thought of the on the spot joining was just a bit much. I was surprised and a bit in shock when my husband signed up.
Since then time has passed, I have seen him progress and make money every week and after about 2 months of him trading I started listening and understanding the great potential in what he was doing.
He started showing me what he was doing and how it all worked and that’s when we decided to open an account for our SMSF.
After the first month the money that account was the proof it WORKS and once again as he was trading with 2 accounts and showing results time after time.
So, it was then time for myself along with my husband to start the ball rolling and become a member myself.
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So now I am off and trading. Each week when I put trades on, I feel like a winner every time. I have to say thank you to my husband and to George for coming and bringing FOKAS into our lives.
Our aim now for both of us is to give up work in a JOB where we work for others and start to do things on our own terms.
The goal is if we have $300K in the trading account then there is no reason that it is possible to make at least 1% on any given week.
Yes 1% of $300K every week.
You can do the maths and that’s is also US dollars too.
Please see my result for December to January.
Some trade and percentage as we do trade on a weekly basis and not all trade get exercise and then we make new contract for income on other weeks until we do get exercised.
• $40.50 $1.19 5 days 2.94%
• $112.88 $5.86 2 days 5.19%
• $64.23 $2.12 4 Weeks 3.3%
Kind Regards
Michelle
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Part Two – How It’s Done In DetailYou Can Lose Your Super As Well As Any Fund Manager
54% of Australians own shares and, while on the Australian
market at least, shares/stocks are still not at the level they
were pre Global Financial Crisis, that is not the case overseas.
Statistics show Australia has the largest share ownership in the
world, partly due to our mandatory superannuation regulations
for all employees in the workforce.
On top of this we have self managed superannuation funds and
people who see investing in the stock market as being the way
to make money for their retirement as well as right now.
The mentality is, go out, buy some shares, hold them, put them
in the bottom drawer, and eventually when they go up, sell them.
The ‘Buy and Hold Brigade’ we mentioned earlier.
So if you went out and bought some shares, irrespective of what
they were worth at the time, can you earn an income from these
shares irrespective of if they go up or down? Yes you can.
Now we are not talking dividends, we all know you can’t even
buy fish and chips with dividends. We are talking income on a
monthly basis.
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Now, can you protect your shares? Yes you can.
I’m beginning to sound like Barrack Obama and his speech when
he won his first term as President of the USA. All that aside, if
we can make money from shares and we can protect them
from ‘harm’, why aren’t super fund managers protecting your
superannuation?
One of the major reasons people elect to create their own super
fund (Self Managed Superannuation Fund or SMSF) is because
they cite the losses suffered to their fund by mismanagement.
While the mismanagement might not be intentional, the excuse
or reason given is usually that the fund was heavily into shares
and the stock market didn’t perform as predicted.
So what they are really saying is that they are gambling with your
money. Speculating that their guesses will pay off and if they
don’t, they still get to charge you a tidy fee for ‘managing’ your
investments. No wonder so many people say they can manage
their money themselves, because at the very least they couldn’t
lose as much as what the fund manager tore up for them!
There is a lot of truth in that and yet it is perhaps not entirely
fair as far as the fund manager is concerned. They do get paid
regardless of the performance of the fund and that is cause for
concern in my book. They are basically speculating on how the
market will perform and that is gambling by any other name and
surely not what you want for your investments.
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Especially if you could gamble and win or lose just the same and
not pay them their fees! Wouldn’t it be nice to pay these monthly
fees to yourself?
So what if you could manage your own super?
Just as in the USA they have the 401(k) / IRA’s, we have SMSF
and you can use the funds within to invest on the stock market
and then create options and make money through covered calls
and do it all yourself to build up you’re retirement fund for when
you do retire.
Multiple Pillars Of Income
Most of you right now have one pillar of income in your lives and
what’s that?
Your J-O-B.
It’s important to build multiple pillars of income for the simple
reason that if one pillar collapses, you still have lots more
supporting you. There is a saying that you can have one J-O-B
paying you $1,000 per week or you can have ten jobs paying you
$100 a week each. If you lose one of those you still have 90% of
your income coming in. If you save at least 10% of your income
then you might miss a deposit into your bank account but you
won’t be falling behind on any of your commitments.
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Why you should have multiple pillars of income is important
for people to understand so that they can live their dreams.
Right now, what I do is I travel around the world and present the
phenomenal strategy that helped change my life and my family’s
life. To me, it’s important for me to be able to explain to you and
show you how this strategy works. If I can assist you and help
you to change your life, that’s what I’m here for.
I have found my mission in life and by doing what I love and
doing it massively, I make a very comfortable living. I also have
multiple pillars of income, not just what I earn from my seminar
presentations.
How many of you have children? So do I. It is important that we
educate ourselves so that we can educate our children to think
outside the square. My father never did it for me. I don’t want to
repeat that with my children when it comes to building wealth.
Foreign Or Domestic? It’s A Choice
When I get to travel around the world, there is nothing like
coming home, to Australia. For many of us, overseas travel is
more exotic, more interesting and gives us better ‘bragging
rights’. Many of us hold the belief, whether we admit it or not that
anything ‘foreign’ is better, cooler, more chic and sophisticated
than anything we can come up with at home.
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Yet to millions, even billions of people living elsewhere, there are
fewer destinations more exciting, adventurous and ‘cachet’ than
a trip ‘Downunder’. What we take for granted as the everyday,
others see as exotic and interesting just as we see their city or
country. I guess it comes down to personal choice.
It is very important for us to ensure our children are educated
enough to make their own decisions when it comes to making
choices. We need to discover what is available to them and
allow them to make the choices in life that allow them to live
their dreams and reach their goals. Too many of us as parents
leave all of this to the ‘system’, the education system. We rely on
the schools and the teachers within those schools to educate
our children yet all they can do is pass on an academic course of
study. Is this an ‘education’? Does it really set them up for what
life will likely throw at them?
Does the education system teach us the value of a dollar? No
it doesn’t. It teaches us how many cents make a dollar and
how much a 20% discount is in dollars and cents, but that has
absolutely nothing to do with the ‘value’ of that dollar. Or how to
make it, spend it, save it or invest it. It teaches us what? To stay
in the rat race. True?
It teaches us to do this: Go to school, get good grades, go get a
job. Go to university, get better grades, go get a better paying job.
To do what? Pay more tax. Keep us in the rat race.
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The fact is the education system, the school system, teaches
people to become teachers. If they play the game they will do
a year in pre-school, then a year in Kindergarten, then six years
of primary school followed by another six years of secondary
school.
At the end of which, some will be able to go to university for
another three years for a Bachelor’s, followed by a year at
Teacher’s College.
At the end of it all they are qualified to teach other people from
the age of 4 or 5. If they just get the Bachelor’s Degree, they can
then do another year or two for a Masters and three years for a
Doctorate and at the end of all that, teach other people how to
do what they have just done.
A system to keep people in the rat race. How can someone build
a dream or a lifestyle with after tax dollars. It’s impossible in my
opinion.
The Well-Off Don’t Fear These Four
Of course, along the way most people learn things they then
apply in J-O-B’s that provide them with a single source of income.
They live in fear of losing their J-O-B, of getting ill, of having an
accident or of growing old. It was these fours life events that
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British Prime Minister Lloyd George said, nearly one hundred
years ago, were the things that worried the poor and threatened
their everyday peace of mind. This was why the unemployment
benefit (Dole) was created, to alleviate these concerns, concerns
the well-off don’t share.
Even if you have a good job and earn a good salary, there is no
guarantee you will have that job tomorrow. I don’t mean literally
overnight but situations do change all the time.
I can’t recall the last time I saw a record store (as we used to
call them). I remember in the 1980s how CDs took over from
vinyl records and it was all cassette tapes and CDs from then
on. Today, MP3 seems to be the format and most people are
buying their music as a download off the internet.
Record stores are becoming a rare beast; so what happened to
all the employees?
I looked at the web site of one of the biggest chains to find they
still have bricks and mortar stores but they now sell as many
movies as they do music. They have been able to adapt and
survive, even thrive.
But so many smaller outlets simply went under. They only
had the one pillar of income, music sales. They were not able
or willing to set up an online sales outlet to capitalize on the
changes to the way people bought their product.
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I popped into the local Blockbuster video rental store the other
week to find they now occupy half the floor space they used
to rent. They are not renting anywhere near as many DVDs as
they used to because so many people now download the latest
releases via the internet. The store sub-lets the space they no
longer need and they have just one person on every shift except
Friday and Saturday nights where there are two.
Given their competition also includes DVD vending machines
outside the local supermarket, it is not surprising they have had
to adjust their operation.
They only have the one pillar of income, DVDs. Sure they rent
and sell movies and they also rent out games, but pretty much
it is just the one income stream from the same customer base.
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Education Needs To Teach Change Management
What these changes in the way people buy music and movies
tell me is that we need to teach change management to our
kids. They need to be taught that change is the only ‘constant’
thing in this world. The only sure thing is that nothing, absolutely
nothing, will remain as it is now or was back then. Everything
and everyone will change.
There is an old saying that a man marries a woman thinking
she will never change and will always be as she is the day he
proposes to her. A woman marries a man thinking she can
change him and make him what she knows he can be, or should
be.
As they go along the path of married life, she changes and he is
not happy while he stubbornly refuses to change and she isn’t
happy about that! The end result is two people who find they
are at a cross roads and their personal paths are heading off in
opposite directions. If they had accepted change and worked
together, perhaps they wouldn’t be facing this split.
We need to change what we teach our kids and we need to
include training in how to manage change, or at least awareness
of change and its inevitability. One way to do this is to teach them
how to make a living using multiple pillars, multiple sources of
revenue or income.
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In simple terms, not relying on a J-O-B. That doesn’t mean they
should try and be an entrepreneur while still in High School.
We need people in J-O-B’s, we need people doing all the things
they do from driving the trains and buses to flying aeroplanes
and assessing insurance risk, cleaning toilets, selling clothing,
fighting fires and so on. Without people in J-O-B’s we don’t have
much of a society, let alone a civilization.
The secret is to have a job, not be stuck in a J-O-B, and the way
to make this happen is to understand how you can earn a living
through having multiple pillars of income.
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“The Fokas Beyond Strategy puts me in control of my own destiny.”
Despite a volatile period in the market the Fokas Beyond Covered Call system and the excellent support and expertise from the coaches has allowed me to earn some pretty decent cash returns as outlined below.
Shows me that even when a stock falls we can still make decent returns as long as we remain calm, patient and attentive.
A summary of my returns for October are outline below. ------
• Profit $942 or 3.21% (43 days)
• Profit $472 or 1.32% (12 days)
• Calls/Puts Cash ($842)
• Call Cash $225
• Calls(2) Cash $2455
Cash income for October is $3252.
I have also generated an additional $1375 cash from ASX stocks I have transferred over from Commsec.
Total Cash income for October = $4627
I signed up to Fokas Beyond in May 2019 after George’s presentation at a property seminar in Wollongong and went live in July after going through all the course materials and bootcamp videos and paper trading for a couple of weeks.
I realised immediately that the Fokas Beyond Covered Call Strategy was something that was low risk and doable with the support provided.
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I have covered the full cost of the membership subscription after only 3 months live trading.
Since retiring in December 2017 my focus has been on support and care of my aged parents and my family.
What is exciting is that George’s strategy works and I will be able to set up my three sons on the pathway to their own financial independence by passing on what I have learned and will learn from Fokas Beyond.
My wife and I are currently on the road for most of November heading across the Nullabor on a bucket list trip and will be checking in as usual as the Covered Call strategy can be done from anywhere with minimal time required which is brilliant .
I feel that the Fokas Beyond Covered Call Strategy with George and the coaches puts me in control of my own destiny.
I have held investments in ASX stocks as well as some international stocks over the years. There has been some successful and some not so successful investments for these holdings.
Having just completed my income tax returns this week and seeing again the mixed results from my portfolio activity I am becoming increasingly interested in restructuring my investment approach more towards the Fokas Beyond Strategy.
George’s approach is much more certain and involves less risk than my own results to date.
Regards
Peter
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Fear of the Unknown Makes You Risk AverseIf you learn how to invest your surplus income to generate more
value (make you some money in other words), then your J-O-B
becomes a pillar of income. It is one income source. The returns
on your investing the surplus income from that pillar form
another pillar. In time you can have a third pillar when you, say,
buy an investment property and rent it out and so on. Nowhere
does it say you have to get a second J-O-B, but you can if you
really want to. Not because you have to. Now perhaps you can
see the value of an education that teaches the value of a dollar
and how to earn lots of them. A lot of people with high paying
jobs are time poor.
While my kids are at school they have a J-O-B: school. They are
professional school children and their job is to learn as much as
they can and to be a proficient and diligent employee (student).
If they want multiple pillars of learning, I’ll get them a tutor. If
they want another pillar of ‘income’ then they can get that J-O-B
at McDonalds. But is that the best way for them to earn extra
income?
Sure they will learn a lot about life, people, working for your
living and many more of life’s lessons working there. They will
be trained to take orders and fill them, follow a system and a
program and they will be rewarded for their time and effort.
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But I thought, instead of having to go work at McDonald’s for $8
an hour and get abused by people like me, how about I teach
them how to invest on the stock market? Don’t get me wrong,
I’ve got nothing against children working at McDonald’s or any
other fast food chain. If they’re getting off their backsides to do
something, that’s good, but it’s not the only solution, nor is it the
best one.
I thought, instead of me going out to other countries and doing
anything outside of Australia, let’s educate our own kids here in
our own backyard. And that’s what this is about and that is what
I’m doing right now. I am starting with the parents because if I
can get the parents to see the value and truth in what I am doing,
then I will have their support.
If I have the support of the parents then there will be no problem
teaching the kids, because they will get the message reinforced
from Mum and Dad when they go home. If I can get this message
of mine out there to the current generation and the next, there is
surely a great deal of hope and positive thinking for our future in
so many ways, and not just economically.
People who have little fear of losing their job, getting ill or being
in an accident that prevents them from working and of being
unable to afford to live in retirement, are far more positive and
productive throughout their lives. They will achieve more simply
because they are more willing to take risks.
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People living in fear tend to stick to what they know won’t cause
any more harm or hardship rather than do anything that might
change their situation for the better. It is human nature.
Fear of the unknown makes you risk averse and that is a sensible
survival based strategy. If you have a job you hang on to it, even if
the boss is exploiting you and not paying award rates. You know
if you spoke up he would pay you then never give you anther
shift because he can hire a hundred people happy to work for
less than the minimum stipulated wage.
Having just one pillar of income leaves you vulnerable to such
exploitation. If you are armed with knowledge and the ability to
generate income through multiple pillars, such as investing on
the stock market, you are more confident you can find a better
paying J-O-B and you can leave that exploitative employer to his
fate.
Are We Ready To Investigate How We Do This?
Hopefully by now you will have formed the opinion that you need
to educate yourself on how to make multiple pillars of income
and that one way is through sensible investment on the stock
market.
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You accept that income from a single J-O-B is not the best
option and that by educating yourself as to other ways to make
a living you are giving yourself freedom.
Freedom to build your wealth and be able to make choices.
Choices that simply are not available to anyone who is chained
to a single source of income, a J-O-B. You want options, but you
realise options trading, as in guessing whether a stock will go up
or down, is NOT the way to go.
I think we have you on the right page, so let us begin.
Domestic or Foreign?
Have you heard about the Dow Jones?
It’s an index. There’s over 13,000 stocks or shares in the US yet
the Dow Jones only makes up the top 30. Overall since 1988, the
Dow Jones is going up. Can we consistently generate an income
off the stock market? Without trying to sound like President
Obama at his acceptance speech, yes we can!
Now, let me tell you something. If I said you can apply this
strategy on the Australian market or you can do it on the US
market, allocating the same time and effort, would you consider
the US market?
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Most people would, some wouldn’t. Those who wouldn’t might
have a fear of investing ‘offshore’. They might think that just
because they aren’t in the same country as their money, so to
speak, they have more chance of losing it. They might think
there is no ‘comeback’ if the money is invested overseas and
something goes wrong.
These are valid concerns but not ones that actually need to keep
anyone from making a good income from this method. You
can lose money just as easily in Australia if you simply gamble
and speculate, and there may be little ‘comeback’ if your broker
simply disappears or declares bankruptcy. The risks are no
higher or lower with the US stock market in that regard.
People in Australia when they hear about the US market will tell
me they don’t know the US market or the companies. Have you
heard of Yahoo, Apple, Microsoft, Google, Caterpillar, Johnson
and Johnson, McDonalds, Walt Disney, Avis Car Rental, Tiffany
and Co, Starbucks? They say we know the Australian market, we
know Woolies, they are the fresh food people….right?
So if I said to you, you can utilize this phenomenal strategy on
the Australian market to earn 1-2% on a monthly basis or, utilize
the same strategy with us on the US market, invest the same
time and effort, but double your returns, would you consider
the US stock market now? Double the returns yet allocating the
same time and effort?
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How many of you would like to generate an income from the US
markets while you sleep and bring it back to Australia? You can.
The beauty about this method is that it works for you while you
do something else, even sleeping. We do not stay up at nights
watching the markets.
The key to long term success and overall greater returns is to
be in this for the long haul. That means playing it fair and by
the rules because you can’t make money if you are in prison.
You can get as rich as you ever want to be legally and ethically
and you get to sleep at night. No worrying about a tap on the
shoulder or a knock on the door.
“An investment in knowledge always pays the best interest.” –
Benjamin Franklin
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“I’ve made 14% of my capital of $30,000 in 4 months!”
My name is Ka.
When I first saw George I loved his energy and the strategy sounded great but my husband and I didn’t join at the time, but from then on, the covered call strategy would come up now and again in our conversations.
In August 2018, we attended another event and there was George again presenting his strategy. This time we jumped onboard straight away. We’d been thinking about it for a good year and seeing George again was a sign!
We could see how the strategy can set us on a path to financial freedom and how the extra income will provide a better life for our growing family.
My husband and I have been in the property market for over 10 years and truth be told, it’s not doing a whole lot until we learnt new strategies and did a renovation and subdivision but the time, effort and initial capital investment is huge compared to the covered call strategy.
I joined Fokas Beyond end of August 2018 and started live trading mid-June 2019, so far I’ve made 14% of my capital of $30,000!
My time commitment is minimal, 5 minutes most days to check my positions, place a trade, and 30 minutes if I talk to coaches, do my own research or go through the education again which is awesome when you have a 4 year old and a now 4 month old to look after as well.
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I’m so grateful I crossed paths with George and so grateful for the coaches who are all so awesome, helpful, knowledgeable and patient.
So down to business, my trades for one month:
• $28.00 = 0.35% Profit
• $228.00 = 10.33% Profit
• $198.00 = 1.62% Profit
• $970.00 = 11.85% Profit
• $567.00 = 7.78% Profit
Total $1,991.00
My current goal is to not go back to work after my maternity leave so I am putting more ammunition into the strategy to realise that goal - I can see it happening!
Once again, thank you for sharing the strategy, it is life changing. So much gratitude to you and the team.
With love and appreciation,
Ka
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A Bit About Fokas BeyondMy business, Fokas Beyond, is staffed with professional investors
and world strategists with a combined level of experience in
excess of 20 years on the stock market. We all have a highly
respected global financial education. I have personally educated
over 30,000 individuals globally on opening their eyes to this
strategy and we are the foremost leaders in educating clients to
invest with this income strategy right now.
We have members in over 13 countries and we provide the best
coaching structure for our members to Learn. Grow. Prosper,
Together. Now, let’s look at financial reality. I know I have already
said some of this before but bear with me because repetition
does not entertain, but it does train and I want to make sure you
are on the same page with me.
We’ve been programmed to have one source of income in our
lives. A job. J-O-B. If you don’t stop to make plans or goals for
your future, you’ll automatically fall into somebody else’s plans.
And right now, those somebody else’s plans are your employer’s
plans.
You have your J-O-B because your employer needs what you
bring to the table; your skills, expertise, experience and even
your good name and reputation.
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Your employer trades off all of that to improve their own bottom
line. Along the way they give you some of the crumbs but rarely
any of the cream. You deserve more than that, but you don’t
necessarily deserve it for what you do in your J-O-B. You might
be very fairly remunerated for your input and productivity, even
over compensated or, you might be getting short changed.
What you need are multiple pillars of income, remember? So why
not the stock market and if so, why not the US stock market?
Why Does The Stock Market Exist?
The stock market exists to transfer vast amounts of money
from the uneducated to the educated. That’s all it is about. A bit
like a casino. They take the money from the punters and they
give them a little of it back now and then to keep them coming
back for more.
Some get more than others and more often, but these are the
very few and far between and they are merely bait to lure in the
great unwashed. Unwashed, uneducated, but cashed up.
The stock market is more subtle than a casino, but most gamble
their money away there, anyway. Most investors are gamblers,
speculators who are guessing the stock will go up or down and
by how much.
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So in regards to the stock market, or my stock market secret, I
simply do the exact polar opposite of what 95% of people do.
95% of people will follow the herd. I do the exact polar opposite.
And that’s why I’m here and that’s why I’m where I am right now,
because of that fact.
“The ultimate ignorance is the rejection of something you know
nothing about and refuse to investigate.” – Dr. Wayne Dyer
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Welcome to Fokas Beyond Covered CallsSo what exactly are Covered Calls. In the simplest of terms,
present here in ‘bullet point’ form, are the details:
• We purchase stocks on the US stock market in lots of100.
• We now can create an option against the stock for income
up front into our trading account the next trading day.
• The option contract we create is very precise. It has an
agreed price that we agree to sell the stock at and an expiry
date where the contract no longer has value.
• We write Option contracts on stocks we own for traders/
speculators who purchase our contracts on the hope that
they will rise in price and thus make a profit.
• The buyer of our contract agrees to purchase our stock at an
agreed price called a Strike Price.
• Global Investors trade the US stockmarket every day and
they will continue to do so as they have done for decades,
even centuries.
• The contract created has an expiry date, which is always the
third Friday of every month.
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• This allows us to generate an income of between 1.5% -
4% approximately a month irrespective of stock market
direction.
There are millions of option buyers in the stock market trading
options in the hope to make money. We create these option
contracts and sell them to the buyers and for this, we generate
a return irrespective of what the stock market or stock will do.
Our profit is made the moment they buy the Option. And the
money is in our account by the next trading day. We then sit and
wait until the third Friday of the month to see whether the stock
closes above the Strike Price or below.
If the stock makes strike and closes above the agreed price,
then we sell the stock to the option buyer and use the money
and the profit we received from day 1 to buy new stock which
we then write an Option on and sell that to another speculator,
banking the income from that transaction, our profit, the very
next trading day. Then we wait until the third Friday of the month
and the cycle begins again. Easy.
When I say, ‘write an Option’, it’s not like you have to hand write
the contract yourself. We use online brokers to implement this
for us through their platforms and just change the relevant
details like stock name, prices and so on. It is a few keystrokes
on a computer kind of writing.
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If the stock doesn’t make strike at the end of the month, then we
keep the stock and remember, the premium originally received,
then we are free to sell an Option on the existing stock again the
very next trading day. Saves us a brokerage fee having to buy
new stock!
The speculator who bought our Option contract might not, and
usually will not, hold onto the Option until the third Friday in the
month.
They will sell it to someone for a profit or loss depending what
the stock does during the month, then look for new Option
contracts to purchase.
The buyer of our Option will quite likely sell it on themselves and
this will go on throughout the month until the third Friday.
This is where the real gamblers might step in and try to make
the big killing. It can also be where the newbies get cleaned out!
You, meanwhile, don’t have a care in the world because whether
the stock makes strike, goes beyond or falls well below, you have
made your profit already from day1.
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The Stock Value Falls – Now What?
If the stock you hold falls and doesn’t make strike then the Option
buyer doesn’t have to buy the stock.
Yes, you now have 100 shares of a stock that is worth possibly
much less than what you originally bought it for but we cover
ourselves against that being a catastrophic loss simply by
buying blue chip stocks.
We don’t buy stock that we suspect might fall beyond a few
dollars or so. Of course crashes happen, but that is why your
education includes discovering how to read the market trends
and select the better stocks.
No guarantees but we can minimise the risk considerably
through applying the education we offer.
Worst case scenario you have 100 shares of stock that, in time,
will not only claw back whatever was lost but, if the last 100
years of trading is anything to go by and it is, they will increase
in value.
You only lose money if you sell the stock for less than you
bought it for and even then, depending on how much it made
for you from the covered calls while you owned it, you could still
be in front.
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Lets Look At An Example
We will call a Stock ABC, and we need to create an Option
contract at an agreed price, called a Strike Price. This means
that we agree as owners of the stock to sell the stock at a future
date, at the agreed price. If the stock reaches the agreed price it
is known as ‘making strike’.
The ‘future date’ always being the third Friday of each month.
ABC is trading at $20.00
We will create an Option at a Strike Price of $20.00. The buyer
of our option is willing to pay us $1.00 per share for the right to
be able to buy our stock from today, till the third Friday at the
agreed price of $20 per share.
Two things can happen at the end of the contract period. The
stock will either close above the $20.00 agreed price or below.
What the buyer agrees to is this: if, at the end of the contract
period, the stock closes at or above the Strike Price, they are
happy to buy the stock from us at the agreed price.
So if ABC closes at $20.25, the buyer takes the stock from us
and pays us $20.00 per stock as per the agreed contract in
place. Even if the stock closes at $20.00 or $20.01, the buyer
must take the stock from us and pay us back $20.00 per stock.
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This is done automatically by the broker and we don’t need to do
anything at the end of the month, it’s all done for us.
If the stock closes below the agreed price, (the Strike Price 19.99
or lower) on expiry, the contract expires worthless. We keep the
stock, we keep the premium that was paid to us from Day 1 ($1
per share so $100 in total) and we now create a new contract for
the next month on the same stock that we hold.
It’s that simple. At the end of the month, the stock will either
close above or below the agreed Strike Price. We will either sell
the stock at the end of the month or hold it.
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We will either create a new contract on existing stock we own
and hold, or create a new contract on new stock we purchase if
we were ‘exercised’.
Exercised means, the stock is taken from us and handed over to
the option buyer.
Looking at the example above, if the option buyer pays me
up front $1.00 per share in income, what is my break even? I
purchase the stock for $20 and receive $1.00 in income, my
break even is $19.00. This means we have purchased a stock
at a discounted rate compared to the average speculator who
purchases stocks on the market at retail.
We now have a $1.00 buffer on our capital to allow the stock to
move and still be in profit.
So if this stock during the month drops down to $19, I am still
ahead or at the very least, I have not lost any money because I
can sell the stock at $19 and I still have the $1 per share paid
for the Option, so I end up with the same $20 per share I started
with. Hence, I ‘break even’.
Lets look at the downside. At the end of the month, let’s say my
stock that I bought has now closed at $18.50. This is now below
my break even. Have I lost anything? No, because I haven’t
sold the stock. I still have the
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$1.00 paid to me which is liquid, physical cash, income. After
expiry, being the third Friday, what do I do on a stock that has
dropped? I go back into the stock market on Monday and create
another contract for the new month, earning us an income
irrespective of the price of the stock.
What you need to understand is this; because the stock has
closed on expiry at $18.50, it does not automatically mean that
during the next month’s contracts the stock will go below this
price. It could go up. It could go down. It could stay the same.
Do we know what the stock will do? NO.
Did we receive an income in the first month? YES.
Do we receive an income now in the second month from
creating a new contract even when the stock is now at $18.50?
Absolutely.
We cannot predict what the stock and the market will do, I’m not
here to tell you I can predict, I can’t.
All I know is I can earn income from the stock irrespective which
way it will trade during the month.
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This Is Not Guessing, Gambling Or Speculating!
Stocks fluctuate every day, they go up and down, and as we don’t
trade direction we are not guessing where they will be at the end
of the contract.
We are not gambling whether they will be up or down on the
third Friday of the month. We are not speculating that we can
make a killing… or not.
We are looking at the income potential of the stock because we
let the stock market do what it wants to every day.
In essence, the strategy is very straightforward with great
opportunity.
The best part about this strategy is that you can get into the
market utilizing our phenomenal strategy with as little as $2,000
in the case of our example where ABC Stock is selling at $20 a
share (plus brokerage fees). The return of 2% or 4% is the same
whether you buy $2,000, $20,000, or$200,000.
Our ABC Stock made us 5% on our investment. (5% of $20 is
$1). Had we bought $200,000 of stock, or twenty contracts of
100 shares per contract, we would still have made 5%, which is
$10,000.
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But if I said to you right now, with $2,000, let’s get into the
market, get your feet wet and discover the strategy, build a solid
foundation and build your knowledge so that you could build
your sky scraper… this would certainly be of interest to you.
If you had $10,000 and you potentially earned yourself a 3%
return, that’s $300 a month.
Now, we’ve got to take brokerage out, as this is a cost of doing
business, however brokerage is only a small fee per transaction
of between $8.95 and $12.95 so lets look at that later.
Let’s just say $300 a month. Can that potentially help you pay off
your home loan quicker or help build a property portfolio?
Absolutely it can!
It’s not going to make you rich, allow you to retire in a years time
or double your money.
I’m not here to make these claims, its not possible.
I’m here to educate you on how to earn a small return up front
on your capital from the stock market irrespective of the stock
markets movements during the month.
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“I earned a massive 7.76% in 15 days!”I started my journey with Fokas Beyond in April 2019. My partner and I started our passive income journey with property and were maxed out after only three years.
We needed to find another income strategy but none suited my lifestyle and restricted time.
The Fokas Beyond program was the first strategy that I thought I could do with my finances and time. I had a negative view on shares however knew nothing about them or how they worked.
I have a low risk profile and this is why this strategy suited me perfectly. The covered call strategy is not betting, it is calculated income and that is why I signed up.
I was so excited to get access to the online material and I got through all of it within two weeks. I was trading in the virtual account for a couple of weeks and then went live in May.
The following are my results for the month: • $260 (USD) or 2.25% for 17 days (not exercised) • $78 (USO) or 0.68% for 11 days (not exercised) • I earned a massive 7.76% $888 (USO) for 15 days (exercised).
All of these trades were the result of me clicking a couple of buttons and waiting until the expiry date, how cool is that!
I learn by doing and love the fact that I have access to a coach everyday to guide me through every step. You cannot put a price on that kind of support.
My reason for taking action is to pursue my dreams of helping others. I want to have the freedom and ability to create education programs that help others be their best selves.
I cannot thank you and your team enough as I finally have an exit strategy to my PAYG job so I can pursue my dreams.
Erin
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Why We Trade On The US MarketWhen it comes to this strategy, I don’t want to rely on anybody
else but myself. I don’t want to rely on fund managers. I don’t
want to rely on brokers. I don’t want to rely on computer systems.
I want to rely on myself. Here are some of the reasons we trade
on the US market rather than the Australian stock exchange:
• There’s just over 3,000 optionable stocks that we choose
from on the US stock market. Australia has just over 75, of
which only a dozen or so are worth considering.
• A $20 dollar stock with 100 shares as a minimum would
require $2,000 investment. 100 shares equals 1 contract,
these are monthly contracts. Australian brokers usually
insist on a minimum account balance of $10,000 to $20,000,
so you can begin making money for less on the US stock
market with $2,000 as opposed to $10,000.
• The US market is the prime driver of all global markets.
Remember our ethos of ‘creating the market’, not reacting to
it.
• Our members have accounts opened on average in 15
minutes and we start paper/virtual trading to show them
the process and to see the income in the account the next
trading day without the need to put real money into the
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markets. It simply is not that quick and easy in Australia
where it can take literally weeks to set up an account.
• The US markets trade 12 months of the year compared to,
effectively, just ten months in Australia due to low liquidity.
• You can’t always find an option buyer on the Australian
market, whereas the US market is always awash with them
when it comes to options traders.
• Brokerage in Australia ranges from an average of $40 to
$130 per transaction. In the US it is between $8.95 and
$12.95 per transaction.
• With returns of 2% to 4% a month, the US market out
performs the 1% to 2% average of the Australian market.
A $30 stock requires a $3,000 investment on the US market. It’s
clearly a better starting point for us to discover the benefits and
build a solid foundation for us. It’s about building confidence in
each member before moving to the next level.
We can create contracts every month, so we have an income
12 months per year. It takes 15 minutes to set up an account,
and as mentioned, our brokerage fees are lower. You have a
choice of which brokerage firm you want to use to implement
this strategy.
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I Know, You Want To Know More!
If you are still with me then I know you want to know more
so lets look at some recent examples of contracts written on
the US stock market. These figures were current at the time
of writing and of course, are purely an example to give you a
better idea of the whole concept of covered calls and how they
work. Unlike some of those ‘Make A Fortune On The Stock
Market’ ‘squeeze pages’ you find yourself surfing into on the
internet, these examples are indicative of average trades. When
I present this information at events around the world I use real
time data from the stock market web site so people can see for
themselves actual data from the market. This, of course, adds a
lot of impact and credibility but it is not something I can replicate
in a book; but feel free to do your own research.
Never forget, a return is better than no return and you can’t go
broke making a profit. Even if you do prefer the ten or so choices
the ASX offers, this method will still work.
Lets take a look at the US market and see the difference in
returns for the same time and effort. Remember, 100 stocks
(we say shares, the Americans use ‘stocks’ but they mean the
same thing) is the minimum on the U.S. market as it is on the
Australian market, however many Australian brokerage firms
will not allow you to buy a minimum of 100 as their fees will eat
into your profit. In the U.S. the fees are small and therefore, we
can start with less.
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We need to purchase a minimum of 100 shares of XYZ, which is
currently selling for $35.32. So 100 times $35.32 is $3,532. That
would be your minimum investment on the US stockmarket.
We purchase our shares in lots of 100 so if we have $8,000 in
the account, we could purchase 200 shares. With 200 shares
or 2 contracts, our capital investment would be $35.32 x 200 =
$7,064.00. Our return or income would also double compared to
buying just one contract, or 100 shares and the best part is, the
brokerage stays the same.
Lets compare our return with the Australian market, you will see
the difference and why we prefer to invest in the US market.
$35K – Better Invested On The Dow, Or In BHP?
Lets look at two examples from real life at the time of me writing
this. BHP on the Australian market and Delta Airlines on the US
market. Now this is not a recommendation for you to go out
and buy any one of these stocks. I want you to see what the
difference is right now on two quality blue chip stocks.
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Australian Market example
If we purchased 1000 shares on the Australian market using
BHP at $37.43, our investment would be $37,430. We write a
contract for an Agreed Price (Strike) of $37.50. Our buyer agrees
to pay $0.89 per share for this Option contract.
We received $890.00 income up front.
Brokerage for this example lets say is $40 per transaction. To
buy the stock is one transaction, to write the contract and create
this for the stock market is another transaction. $40 x 2 = $80.
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If our income is $890 and the brokerage is $80, then our net
return is $810.
$810 / $37,430 x 100 = 2.1% Return on Investment for 4 weeks.
US Market example
If we purchased 1000 shares on the US market at $37.87, our
investment would be $37,860. We write a contract for an Agreed
Price (Strike) of $38.00. Our buyer agrees to pay $1.35 per share
for this Option contract.
We received $1,350 income up front.
Brokerage is $12.95, lets round this up and say $13 per
transaction. To buy the stock is one transaction, to write
the contract and create this for the stock market is another
transaction. $13 x 2 = $26.
If our income is $1,350 and the brokerage is $26, then our net
return is $1,324.
$1,324 / $37,860 x 100 = 3.5% Return on Investment for 4
weeks.
Just compare this with the bank’s Term Deposit and the
Australian market.
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BHP was paying a return of $810 on an investment of $37,430
at the time I did these figures. For the same time and effort,
would you prefer $810 profit on your $37,430 investment or,
$1,324 on your $37,860 investment?
It’s not rocket science. Just think about what you can do with
this income on a monthly basis. How hard do people work for
this type of income. If you made that 3.5% every month for 12
months then you will make an annual return on investment of
42%! I’m not saying you will do that every month as the returns
are different every month. However, think outside the square.
There isn’t a bank in the world offering 42% interest on term
deposits.
Remember, approximately 54% of Australians own shares and
less than 2% actually do this. Some own shares through their
managed super funds and so have little opportunity but for all
those who own stock in companies in their self-managed super
funds or separately, so few are making anything from their
investment other than whatever it might or might not make over
time. How much money is left on the table every month due to
ignorance?
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This Is an Income Strategy From The Stock Market
Most US retirement accounts only allow this Covered Call
strategy to be transacted. We have all heard of the term ‘self-
managed super fund’. In the US, they call it a 401K/IRA. This is
the only strategy the US administration allows the Americans
to trade with their 401K / IRA. What does it tell you about the
strategy?
Now, what you need to understand is this: This strategy has
been in existence since 1973. We haven’t created this strategy,
but we have, I personally believe, perfected this strategy. This
strategy pays income.
We provide our members with stocks to consider every day.
Our education teaches our members to rely on nobody else but
themselves, not even us. Remember what I said about how I
want to be in control? I want to make the decisions about my
money? We practice what we preach and insist our members
develop the skills and knowledge to make their own decisions.
Remember the old saying:
‘Give a man a fish and you feed him for a day, Teach him how
to fish and he can feed himself for life!’
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We hold our positions even if the stock comes down, holding
on, earning an income because the income will eventually over
power the drop in stock value and we can then potentially close
the position at a Profit.
We don’t need to panic, we hold a tangible asset, being the
stock. Most people sit on stocks over many years doing nothing;
watching them go up and down and missing out on the income.
If any stocks do fall in price, most will, within three to six months,
go back up.
Let me show you what we have generated over the last few
months.
Remember Results
We invest only in BLUE CHIP stocks on the US market. Remember
there are 3200 Blue Chip stocks to choose from, so this allows
us to be conservative and ensure that the companies we invest
in are big companies where we know the stock will fluctuate up
and down and while it is doing this, we can still earn an income.
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You can’t go broke making a PROFIT!
Just imagine what Possibilities and Opportunities this can bring
YOU! There is no reason whatsoever why you can’t do this just
the same as I do. I get up at around 10:00am in the morning. I
turn my computer on, and I go, “Right, I have ABC stock, I have a
break even of (for example) $23.” How long do you think it takes
you to turn your computer on and log onto the internet? Two,
three minutes? You log into your account that’s online because
we have no software, no black boxes, nothing to download, it’s
all done on the internet. If you have a smart phone you can do it
straight from your phone anywhere around the world. You are a
Global Investor.
So, you log onto the internet and you go, ABC stock, I have a
break even of $23. Where is the stock right now, where is it?
What is the current stock price today? Is it above or below your
break even?
Above? Great, close your computer and check it tomorrow.
Below? Great, close your computer and check it tomorrow.
Can you do this?
The broker that we use has an application useable on all smart
phones and I can log straight into my account through there, I
don’t even have to have a computer.
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I don’t have to carry any hard drives, or even my laptop.
I can be anywhere in the world, anywhere. As long as I can log
onto the internet I can do this. Isn’t that brilliant?
Best part about this strategy is, whether the contract period
is for four weeks till expiry, three weeks till expiry, two weeks
till expiry or even one week, we can enter at any point without
having to watch or monitor the markets.
If I wanted to go on holidays this week, do I care if I don’t have
money in the market? NO.
With as few as just two days to go until the contract expiry date,
we can enter the market and earn a return on investment. Even
for just two days!
There are speculators in the market who will happily purchase a
contract for two days.
This means we are never in a rush to get into the market. We can
park our money on the side lines if needed. That’s the choice we
have, and choice is what this is all about.
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Time Is Not A Major Requirement
We don’t need to allocate much time to this so therefore, your
time can be allocated to building other pillars of income or
spending time with your loved ones. That’s what we call lifestyle.
Remember the ‘second job’ I was advised would be the solution
to my income issues?
Remember how much of my time would be stolen by a second
job and how little, effectively, it would have earned me? Imagine
my hourly rate of earnings if I invest one hour a month going
online, writing the Option contract, having my broker sell it for
me and then checking in at the expiry to see whether it was
exercised or I have to write it again for another month. If I make
$100, then my hourly rate of pay is $100. Investing more and
making, say $1,500 for the month puts me into the fee range of
high flying CEO’s!
I’m not here to tell you to retire tomorrow. I’m not here to tell
you I’m going to make you a million dollars overnight. It doesn’t
happen. No matter what those internet ‘Dot Com Guru’s’ might
try to have you believe, nobody is going to make a fortune sitting
beside the pool with their laptop for an hour a day, working the
angles with some internet based enterprise. Those guys do
make serious amounts of money but believe me, they also invest
considerable chunks of their time to keep the money rolling in,
no matter what the hype on their website suggests.
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For the vast majority of us, everyday people with a few thousand
dollars to start with, if we can start small in getting into the
market, at least start learning the strategies and building a very
solid foundation, we can begin to build our skyscraper. One floor
at a time. How high do you think we can build it?
As high as we want to.
So it’s a matter of taking small steps. In my case, it took me three
years. I didn’t want to retire, I wanted to be financially secure
enough to pursue my passion, my dream.
I have a dream, a mission in life and that is to educate others.
That is what I’m passionate about. I invest my time more in
educating others than I need to in managing my own income
pillars and investments; because I can.
Learn From The Trials And Errors Of Others
When I started learning how to speculate, I lost over $70,000.
Seventy grand in a year, if you recall. I went from one extreme
to another, from speculating on the big gamble, high risk
offerings to becoming very conservative. I wanted to preserve
my capital. So I started small, making more small returns and
then compounding it.
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I can say with confidence that usually I can compete against a
speculator, say over a 12-month period, earning what they do by
compounding the 2%,3% and 4% a month returns.
Most times, my members and I actually come out ahead. I don’t
make as much in one hit like they can, but then I don’t lose as
much as they do when it goes against them.
As I say, a Profit is a Profit and you cant lose making a profit;
even if that profit is only a few percentage points.
I’d rather receive small returns a month than try to make 50%
today, lose 60% tomorrow and spend hours of my time chasing
my tail.
Making 30%, losing 40%. Making 55%, losing 42% and so on.
I don’t want to go through that ever again because it is an
emotional roller coaster. It’s all about living your dream and
enjoying life and you can’t be having any fun if you are forever
watching the markets trading it.
You have absolutely no control over where the price goes,up,
down or remaining the same; yet 95% of investors gamble and
speculate.
That is not the lifestyle I want, nor should you.
Have You Had Consistent Success? If Not, Why Not?
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Here’s an answer that makes a lot of sense: the deck is stacked
against the retail investor and trader.
Do you have the skill to pick the stocks that will gain in value in a
few years, a few months, a few days?
Few do. The good news is that about 10,000 different magazines,
web sites and television pundits all know just which stocks you
should buy today.
The bad news is that none of them pick the same stocks. Good
luck picking the right one to follow. Do you have that rare skill to
time stocks like the successful day traders and swing traders,
and can you sit in front of a computer monitor all day waiting to
catch the moves?
If you haven’t had consistent success with your investing, there
might be several very good reasons why not.
Or maybe, just maybe, you’ve never deployed a strategy that
can work consistently in different markets, because you just
didn’t know there was one...
Let me raise my hand here and say that I have done ALL of the
above, so I’m not talking theory here! But even if you are doing
something that is working, consider the possibility of devoting
unused corners of your account to an income-producing
strategy.
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It’s all about cash flow, not investment savvy or stock-
picking.
What do guys like Warren Buffett and Donald Trump have in
common? The answer: cash flow. Business is measured by
its cash flow and the quality of its earnings. Investors and the
market all breathlessly await the earnings report, not the asset
report or book value report. Cash flow: business lives and dies
by it. Thus, how odd is it that Australian and American investors
are constantly exhorted to simply buy and hold unproductive
investments - something that no captain of industry or
businessman ever has done or ever will do?
It really is simple. Your money should be working for you -
conservatively, regularly generating income.
So now you have the alternative: income investing using the
Covered Call strategy.
Does the idea of using an income investing strategy to generate
2% to 4% a month on your funds appeal to you? That’s 24% to
48% annually, without any compounding of returns. Do you
like the idea of confining your investing to only high-quality,
conservative stocks, the kind that competent financial advisers
would recommend if they didn’t live primarily on commissions
on the products they actually recommend? How about using a
simple strategy to limit your risk in each trade to only a few
percent of the amount invested?
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Note: According to the Chicago Board Options Exchange (CBOE),
the world’s largest, writing covered calls is more conservative
than owning stock alone.
Take Control Of Your Money… And Your Future
If you had the choice to protect your capital on the stock market,
would you?
You can protect your capital on the stock market. Can you
protect 100% of your capital? The answer is NO! Unfortunately,
you cannot cover 100% of your capital.
If anyone tells you they can, they are dreaming, or lying. Nothing
on this planet is 100% guaranteed risk free. There are, of course,
ways you can increase the odds in your favour and minimise the
potential risk. There are ways to protect your capital at low cost.
The protection we have in place, for example, is purchased from
the stock market. There will always be risk on the stock market,
however, if we can protect most of the capital, know what the
risk is and what the return will be, up front before we enter the
market, there is no other strategy right now that can better the
one we employ for our members.
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You can protect between 90% - 99% of your capital when you
enter a covered call position for the month. Therefore no more
than 10% would be at risk when you enter the covered call
position for the month.
We use a small percentage of the profit we earn to purchase this
protection, while still earning a return on our investment. This
way, to protect our hard earned cash, we use none of our own
money but the income that comes in from the investment we
are protecting. We want to reduce our risk as much as possible
but also keep the cost of that protection down to a minimum.
Guess who writes the most covered calls of all?
The answer: In the US the large institutional money managers;
pensions, mutual funds, hedge funds, and any institution that
holds a portfolio of stocks. It only makes sense... why would
they just sit there hoping the stocks will go up when they could
make the portfolio in effect pay a monthly dividend by selling
call options against the shares?
The institutions sell more covered calls than anybody. If they’re
doing it, why aren’t you?
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Think about it: which side should you be on... the speculative
side or the income side?
The buy and hold crowd would exhort you to buy stocks and hold
them indefinitely and unproductively, whereas implementing the
covered call strategy the correct way generates 1.5% to 4% a
month in income - and you still own the stocks, if you want and
you can have protection on your Capital. Which sounds better
to you?
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“I have my 5 year plan and I will be flying First Class.”
My name in Dee - My story is not so remarkable but the opportunity to see my way to financial independence is.
As a single middle-aged woman looking for a way to support myself, as well as create an enviable lifestyle, I attended a real estate seminar in Brisbane in May 2019.
Through the seminar I was struggling with the amount of information, research and time that was needed to make money in real estate. I have a lot admiration for the people who had achieved so much using this strategy – but knew that it just wasn’t for me in my present circumstances.
Then at the conclusion George pops up and does his spiel.
It immediately made sense to me and ignoring my inner voice saying that this could be an expensive mistake and the inevitable “What are you doing Mum’ – I joined up.
I went live in September 2019 using my own money.
I have religiously gone through all the education and watched all the bootcamps at least twice - and applied all the rules (most of the time).
One of my first trades was 15/10/2019 - unfortunately the shares dropped quickly and my heart sank (trying not to get emotional) .
After some invaluable coaching and actually going it alone in the last month, I am very proud to say that I got out Feb 2020 at 8.2% (in less than 4 months) - heart sang (trying not to get too emotional).
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My trades for the month are below:
• $1682 or 8.01% 116 days - exercised
• $286.55 or 1.45% 4 days - exercised
• $216.78 or 2.53% 50 days - exercised
• $200.00 or 1.5% - Open
The COVID-19 virus didn’t help February trades at the end of the month but has given me insight as to what can happen in extreme circumstances.
However, with patience and guidance I know that my trades will eventually return a profit.
The support and encouragement given to me from the coaches and George are proof that the way forward for me is through the Fokas Beyond Strategy.
I know that I am still in my apprenticeship phase, still learning every day, and growing in confidence with each informed decision that I can make on my own - I have my 5 year plan and I will be flying First Class and spreading the word.
BTW my sons want to do this as well now :)
Thanks for all your help, George (coaches too).
Regards,
Dee
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At Last, The Decision!If you are like me, you would like to know what your risk is before
you put any money in the market. That is prudent and given
what we have learned about the bubbles and the crashes, the
gamblers and the speculators, a sensible thing to do.
Let me tell you a bit more in detail about Fokas Beyond and what
we do to help ordinary, everyday people like you and me make an
income through investing on the stock market.
Let’s say I outlay X-amount of dollars. I know what my profit is
and I know what my risk is before I put any money in the market.
How would you like to be in that position?
Are we in a better position to assess the exposure? Absolutely.
Investing the way we teach is like having a business of your own
with all the features and benefits of a true dream business.
My clients are members of a select group of investors who have
their own say in what they are earning and generating.
They have all the coaching available to them yet they have
true independence to invest in what they choose to invest their
money in. They have full control and complete choice.
The Universe rewards completions, not intentions.
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You Can Do This!
Now, can you do this? If anyone can, you can! Just think of the
possibilities for you and of course, your loved ones. We basically
educate you to be able to do this on your own, relying on nobody
but yourself. Truly you are your own boss.
Each member is allocated a coach, or mentor, who helps the
member learn the system thoroughly over twelve months.
They develop a plan that allows the member to learn the method
confidently and completely so they can operate the method on
their own. Basically members invest in themselves and their
future because an education is perhaps the one thing no one
can ever take away from you.
There is no future without an investment
There is no software to download or any special equipment you
need to purchase. Everything is done on the internet, online.
What we do is we give you the education you need to discover
how to build your solid foundation so you are able to do this on
your own.
Unlike many stock market educators providing speculative
strategies, we have no monthly subscriptions and no software,
just knowledge and proven methodology.
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Basically what we do is hold your hand and guide you for 12
months. We take you to the point where you’re able to do this on
your own without having to rely on anybody else.
How would you like to be in that position and not have to rely on
anybody else but yourself? We provide you with daily stock picks
for the first 12 months while educating you on how to scan the
markets and get into the markets to do this on your own.
You receive all the education online. Knowledge is power. Do you
have 5 - 6 hours right now to discover this strategy? In fact, you
know some of it anyway, purely by reading this. In just five to six
hours, you will discover the strategies to be able to get into the
market and do this on your own, with our guidance. Plus you will
also receive additional services from us. Would you like to have
direct access to the stocks I recommend to my members on a
daily basis?
Studies have shown the single most important factor the
helped most successful people was; they had a coach/mentor.
Someone who took them under their wing and showed them the
ropes.
Everything you need is locked up in the heart of a mentor.
If you’re looking for real guidance with all the questions answered
from someone who’s willing to share everything with you, I’ll
doubt you’ll find many qualified candidates.
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Plenty of people out there will take your money and they no
doubt know what to do and might even be able to teach others,
but that doesn’t mean what they teach is the right stuff.
Take Action Now And Be Part Of The 5%
Someone once said to me that success in everything is 95%
simply turning up! Most people fail to take any action, to do
anything to change how they are and become the way they
want to be. How serious are you about improving your financial
situation?
Do you really want to discover how to generate income on a
monthly basis on your investments?
To create a second pillar of income that will help you achieve
financial independence?
How serious are you about having a personal coach who will
guide you and hold your hand for the next 12 months and teach
you these strategies?
Come to the specialists who have been implementing and
educating on this strategy for over ten years and we can educate
you and guide you and ‘hold your hand’ as we teach you how to
generate income on a monthly basis.
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What does it mean to you to have a coach holding your hand and
teaching you and, if necessary, giving you a friendly ‘kick up the
backside’ that’s going to torment you if you don’t do anything?
Most of us have all the will in the world but we just need a push
now and then and a shove from time to time until we break the
old habits and develop new, better ones.
We don’t offer support, we offer coaching. Someone dedicated
to helping you create new, life changing habits.
If you’re willing to take action and you’re willing to discover this
strategy, to earn income, we are willing to put our time into this
to guide you.
Your dedicated coaches will guide you with your studies, guide
you with opening your account to trade, assist you with your
stock search and your stock review, assist you with how to place
your trades, monitor your trades and you’ll also have access to
our other coaching teams.
“Watch your thoughts, for they become words. Choose your
words, for they become actions. Understand your actions, for
they become habits. Study your habits, for they will become your
character. Develop your character, for it becomes your destiny.” –
Ralph Waldo Emerson
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Model What We Do And Do It Well!
I concluded that, unfortunately, only a few want to hear how
to become independent and free. To do this, you need to stop
identifying with the false beliefs you have internally, do what you
want to do (instead of ‘working for a living’), and live in joy, which
is what we are designed to do.
I felt going through this journey as if I were my own minority
group. I truly do want to know that which I don’t want to know
and this is what changed my situation. Most people want
security over freedom.
As most people identify with their beliefs, giving them up would
present the fear, ‘who would I BE?’ If they were to open their
minds, drop their preconceived notions and their psychological
prejudices, let go of the concept that their beliefs are who they
are, they might become enlightened. Millions of unconscious
people are not taking responsibility for their inner peace.
Success isn’t something that just happens - success is learned,
success is practiced and then it is shared. Welcome to Fokas
Beyond.
By now you want to be taking assertive command of your
financial future, where money is no longer a limitation but a
potent tool you have with power and impact. So what’s stopping
you?
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If you want to know more, please contact us and allow us to
show you the way where we want you to;
Learn. Grow. Prosper. Together
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“Five months after we started live trading, we got back my original investment – TWO and a half times!”
I came along to your presentation in Oct 2016. It was actually my husband who wanted to come but he was working overseas at the time, so I came as proxy.
Just to listen to you, without making financial decisions on my own.
“He is good, I like him - we might sign up some time in the future”, my hubby said.
So I was sitting there on a cold, rainy evening, listening to you, and things started resonating with me:
FOKAS! Focus on your goal , on where you want to go and what you want to achieve in life; the quality of life you want to have without being a slave to investment properties or even worse, risking great amounts of money into various get rich schemes, while balancing a JOB.
FOKAS, I thought! Focus on one investment approach that has proven to work, and that works if you apply it consistently without the need to put a big effort or a dozen hours per week to learn the skills.
That evening I made the decision to trust my instinct , my eyes and my logic, too. You see, we have a rule at home not to make financial decisions without consulting each other.
Guess what? I broke the rule! I thought - yep, sometime in the future we might join. But why wait? Why not act NOW?
Time is my most precious commodity.
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If I want to get a return soon, I’d better invest right now!
Was it a wise decision? Yes! (Hubby concurs).
Five months after we started live trading (we paper traded until April 2017), we got back my original investment – TWO and a half times!
Working in a team (with your directions, with the coaches and office support) has helped us move steadily onwards and upwards.
So I am very pleased to share our results, which we see as humble this month (because we have been spoilt with some amazing percentage returns in some of the past 5 months) .
Does it give me a great satisfaction to look at our trading account? Yes.
Do I feel like I can trust the system and coaches’ advice - absolutely!
Below are our results for the month of October:
$546.00 1.82% in 15 days $1,390.00 3.26% in 10 days $819.00 2.48% in 4 days $1,200.00 4.50% in 31 days
And by the way, my vision for the near future is to replace my JOB income with my trading income. I am more than happy to replace 9 hours of work/day with 10 minutes of screening my trades and updating my spreadsheet.
What do you think?
With gratitude,
Elena
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“I’m secretly aiming to replace my husband’s full-time income!”
G’day George,
It is great you are having a fantastic time with your family in the States.
I thought I put myself out there for the investor of the month as I have been quite consistent... with you and the coaches help, of course!
Exercised on 24/3 made $224.00 - 1 .57 % for 4 days Exercised on 7/4, made $262.00 - 1.89% for 8 days Exercised on 14/4, made $328.00 - 3.33% for 8 days Exercised on 20/4, made $248.00 - 1.74% for 9 days Covered call $233.00 for 7 days - 2.45%, still own stock.
So in total I made $1295! This is my best month so far!!
I have been with Fokas beyond for 15 months and paper traded for 3 months then live trading after that. I joined Fokas Beyond as I knew someone doing it and he said it does actually work.
I was quite sceptical, as my husband did the Optionetics course a long time ago with not much success. However, after I talked to George personally, I changed my mind. I think I talked to him 3 times, with more questions to ask each time.
George was thorough and professional over the phone, I was convinced he was genuine.
I actually didn’t even attend the 2 hour info night... reading up on George’s strategy, a testimonial from a friend, and chat with George were enough to join up.
My husband was like, “You are the one who said not to do options anymore!”, as I was the one who asked him to close everything and get out, to never touch it and never say the word “option” again. And here I am deep into it. :)
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I’m a busy mum with 3 kids. I decided not to go back to work full-time as I wanted to stay home with the kids, so I only work part time.
With this month’s income, it’s almost the same as me doing the part time work.
How fantastic is it that I don’t need to get out of the house to be able to make money?
Now that I am used to it, it really only takes 10 minutes every day to review positions most of the time. I just stick to George’s rules and I am getting results.
I have done some investment courses in the past and not much happened. Some were too hard to follow and did not give enough support - I felt stranded .
Fokas support team is great. It makes all the difference. I love being able to talk to them 10 am -10pm... they are so helpful.
Even when I need a few minutes chat for reassurance or lengthy questions. It gives me a great peace of mind that they are there most of the day.
It’s a great system and I really wouldn’t have been able to achieve good results without the support of the coaches. Also if I ask George something, he replies to my questions himself ... you know most of investment course founders don‘t do that.
I am so happy to have found this strategy. I am planning to put more money into it, to invest and earn more in the future. Secretly aiming to replace my husband’s full time income one day ...
Thank you George, and coaches John, Kevin, Maxine, Greg and Sharon!
Cheers,
Toshie xx
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“Thank you George for what you have done for us to improve our lives”
My name is Mark and I’ve been a member of Fokas Beyond since March 2015.
I attended a presentation at Parramatta in March 2015, because I was curious as to how I could make money with minimal effort.
Whilst the event was promoted as ‘free’, I paid $27, because I’m an information person and I
wanted additional details.
Well, I only needed 15 minutes to be convinced the Fokas Beyond Strategy was exactly what I wanted to do. I wanted to join right then, but I had to wait nearly 2 hours (whilst George finished his presentation) ... I was ‘pumped’.
Anyway, I virtual traded for over 6 months, until I got the ‘courage’ to use my own cash. That first ‘live’ trade was a big step ... now it’s become second nature to me!
During 2016, 1 ‘dabbled’ with both some SMSF monies and a separate trust we established. I earned enough to pay towards our spending monney for a trip to the USA 12 months ago.
Anyway, after the December 2016 bootcamp, I knew if I really wanted to succeed, I had to become serious!
I signed up in October 2016 ... It’s a fantastic tool and it saves me a lot of time and I know exactly how my positions are perform ing and it enables me to find the best position, especially when it comes to % return.
As I place covered/collared calls on ‘weeklies ‘, I want to compare what my best return is going to be ... the current week or the following week.
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Have I made any mistakes? Of course I have, but it’s all part of the learning process.
Am I concerned about stocks showing a ‘paper loss’ ... definitely not, it’s only a loss if I sell stocks that are below my break-even, so I’ll never be doing that, because I follow George ‘s strategy .
Do I spend 60 minutes a month on my ‘business’?
I could if I wanted to, but I believe in the more effort and time you put into something, the greater the rewards! So, I spend at least 2 - 4 hours a week on learning and trading, because I love what I’m doing!
Do I use the coaches for guidance? Absolutely, they help me with my teaming, so I speak to them when I need assistance.
Currently, we have 2 Fokas accounts and our SMSF Is showing a profit of US$33,000 net (after commissions are deducted) and the trust we have is showing a profit of US$14,500 net.
There’s no other investment I can think of that’s returning us so much money. I intend to open a trust account for my 10 & 8 year old daughters, as well as another trust account with my sister, that will be 4 Fokas acccounts! Am I committed ... you bet I am!
Have we spent some of our profits from the smaller trust?
Of course we have ... we have a lovely new leather lounge, we have just paid for a cruise in the New Year and we have some house renovations to do, so the profits are going to pay for our improved lifestyle!
My goal is to quit my everyday JOB and replace my income (and more) and live off our investment returns. We just need to do those renovations first!
Total Profit = US$3,706.86
Thank you George for what you have done for us to improve our lives ... so far!
Best wishes
Mark
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“4.86% Profit in one just one month”My name is John,
I joined the Fokas Beyond family in 2015 but with other distractions and the lack of fokas to study how the strategy worked I procrastinated for over a year, even after doing two Melbourne boot camps.
In April this year it was realised that my triad of 35 years in horticulture and my own business of 14 will come to an end in March 2018.
Push came to shove. I had to do something to earn an income. Up until then the only way I knew how earn income was to physically dig a hole and plant a plant.
So I applied some ... fokas ... commitment, studying the education and began practising paper trading in April 2017 for a few months.
I quickly saw the potential of creating an income, and how things came together. I wasn’t going to become a millionaire over night or a few nights but in a couple of years I could create a comfortable income. In July 2017 I went live.
I was very nervous trading with my hard earned. Everything became real. I started small to test the water and each month putting more money Into my trading account. Reviewing what I was learning and talking to the coaches.
“Its still a work in progress but man am I making progress.”
This is a sign I have in my office that speaks volumes.
There is some uncertainty of what next year holds for me as my business will be finishing end of March 2018 and no concrete direction of the next stage of my life.
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Developing the tools and understanding of Cover Calls I can see how I can create an income using George’s education freeing me to finally pursue my life’s mission and not just a job to pay the bills.
The surprising thing is I’m really enjoying the covered call strategy, studying and implementing the education, moving money around and most of all .... the money I’m making!
October expiry was an amazing month for me, beyond my expectations and I’m sure not the norm, but I’ll take it. 4.86%.
November expiry was another great month, 3 positions with the following returns.
2.97% for the month and the position is still open.
2.6% for 4 days and the position was exercised.
3.2% for 11 days and the position was exercised.
Thank you George and to the crew you have put together for your support.
With the deepest respect and regard thank you for what your doing..
Regards
John
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“I wish I had been introduced to this strategy 20 years ago! ”
My name is Todd and I joined your program in November 2017.
We first learnt about the George Fokas program whilst attending a 3 day boot camp for realestate Program with my wife, Amanda.
You got up on stage on the Saturday night to present and we liked what we heard and the energy that you conveyed and it sounded too good to miss so we signed up that night.
I spent a lot of time during my recent Christmas holidays reading and viewing the Fokas education.
I placed my first live collar trade on the 11/01/2018 of 100 stock from your stock pick.
I was exercised 9 days later and made a profit of US$108.09 = 2.66%. Yeehah!
Not a huge amount but as you say a profit is a profit! I am on my way and have started my journey with initial balance of $10,000AUD. But have recently increased to $20,000 AUD.
It feels really good to be one of the 5% who is creating the market and not speculating on the market. I would like to thank you for allowing me the opportunity participate through your platform to this wonderful strategy.
I joined Fokas because we want to build up our passive income and not be solely reliant upon our JOBs to make ends meet plus to realise our dreams.
I am very optimistic about this strategy however will take it month by month for now to ease my way into it and build up my knowledge and confidence.
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I am amazed how powerful and clever it is.
I wish I had been introduced to this strategy 20 years ago! I can’t wait for the Perth boot camp in May 2018.
Look forward to meeting up with you then and learning more about this great strategy. Thanks and take care.
Regards,
Todd
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“I never imagined this would be my path and I love that.”
My partner, Steve joined in December 2015 and I took over the membership just after our baby was born around May 2016.
My partner Steve has always had an interest in trading options and he joined immediately when he met you at a presentation.
He secured a new role of employment soon after which kept him far too busy for
any additional projects and so swiftly passed the Fokas Beyond membership onto me.
I’d never done any kind of trading or anything similar and really didn’t imagine I would have been capable. Trading was really outside my scope of understanding.
So anyway, It went somethlng Iike this:
Me: “I can’t do that. I’m hopeless with numbers, “
Steve: “You have to do It. I don’t have any time “
And so that was that.
I have PTSO (Post Traumatic Stress Disorder) which means, ironically, that I have a great deal of trouble focusing at times. My brain gets jumbled and foggy very easily, and I’ll often lose my train of thought mid-sentence.
I have found I am highly capable of a great outcome with the Fokas Beyond strategy. Even If I have to triple check everything twice over and repeat myself to the coaches (both common symptoms of PTSD).
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I have found I love numbers. And the market and all it has to offer.
I find it intersting and enjoyable, I never imagined this would be my path and I love that. I love the element of surprise.
It’s a really great feeling. To find something you really love and find so interesting - and in such a serendipitous way (as my husband dumping the membership on me)
Very, very quickly I came to love trading covered calls and George‘s whole program.
I spent many hours on the sofa, new born baby in my arms, going through the online education and watching the workshops over and over again.
Still to this day, most of the time when I’m onllne with the coaches - still several times per week If not every day - I’m breastfeeding my baby at the same time or just cradling her In one arm while she sleeps and trading with the other.
My results for the month of August 2017 as follows;
$386.20, 3.47% in 2 weeks, 90.19% annualised
$134.71 2.71% in 8 months, 4.07% annualised
Being with Fokas Beyond has been really wonderful. It has allowed me to feel I am contributing financially to our family’s future while being able to care for our baby at home.
As well as being another part in the story of us becoming independently wealthy and financially free.
Educating our daughter on how to be empowered regarding her financial situation is very important to us and this contributes to that vision also.
Warm regards,
Kim
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“This system George has taught me will be life changing.”
My name is Vesna and I got to experience George at an education session in early March this year.
I didn’t know what the session was about expect that it was titled as a bonus session and I hung around to see what it was about .
I am so glad I stayed, it was the first time in a very, very long time that I could see a light at the end of the tunnel. A real opportunity for me to learn how to create a passive income.
I was hooked by George’s energy and passion and his system.
Since March I ate up all the education and mentoring/coaching sessions. I also set myself a goal to begin live trading by the time I attended my first Boot camp, and I achieved that.
Along the way I doubted myself. Could I do it? Would it really work the way George said It would? All those thoughts and everytime I would shut down the negative talk, Georges daily emails and messages helped me along the way.
I know that this system George has taught me will be life changing, It already is for me, my confidence level my belief In myself..
I know I will create financial Independence for myself and not have to work for someone else.
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I have being live trading now for 2 months and have attached the trades.
• 31 days S234 Profit (3%)
• 24 days $575 Profit (3%)
• 28 days $250 Profit (2%)
• 4 days $388 Profit (1.31%)
• 9 days $186 Profit (1.57%)
• 10 days $146 Profit (2.18%)
• 6 days $200 Profit (1.8%)
• 13 days $260 Profit (2%)
Thank you George, you have already changed my life.
Vesna-
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“My overall net asset value has increased by approx 5.2% - IN LESS THAN 100 DAYS! ”
My name is Richard, I signed up with Fokas Beyond near the end of 2017, and after several months of paper trading, I (nervously) entered into my first live trade on 30/5/2018.
Since that time I have done about a dozen trades, all but one of which I have successfully exited profitably (the exception I am still holding, so no realised loss yet, and will monitor and try to trade back into profit).
My overall net asset value has increased by approx 5.2% - IN LESS THAN 100 DAYS!
Extrapolating that gives me an expected return for a full year of around 19% - not too shabby for a complete novice!
Over the last month, I have written 4 covered calls: • income $1203 (8.32%) • income $204 (2.03%) • income $142 (1.12%) • income $112 (1.56%)
The question for me is not why I joined up with Fokas Beyond, but why I didn’t join up earlier! To be honest, the system that George sells sounded too good to be true, so although I have been aware of Fokas Beyond for a couple of years, I have shied away from it.
It was only after talking to a number of Fokas Beyond members that were achiev ing results just as stated that I decided to commit to having a go. I sure am glad I did!
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I now have a proven vehicle for generating cash flow that will allow me to accelerate my journey towards financial freedom.
Working with the Fokas Beyond team has shown me a path that I was previously unaware of, and will help me hit my goals much earlier than I previously could have.
The returns I have achieved so far with Fokas Beyond have exceeded what I have been previously been able to achieve with positive cash flow real estate - and I still have 2/3 of the year left!
Considering I am only investing a few hours a month into this strategy (which I expect will reduce as I become more competent/confident), it really is hard to beat.
One of the things I am most excited about is teaching this strategy to my kids!
It will be great to know that they have a strategy that will hold them in good stead as they move out into the real world, and will allow them to pursue their passions, rather than getting chained to a corporate position for the financial “security” it provides.
A huge thank you to the team at Fokas Beyond for opening my eyes and holding my hand as I embarked on this journey.
I now have a vision for financial security and independence that is crystal clear and I have proven to myself that it is achievable.
I am looking forward to getting more money in the game now so I can magnify my profits!
Regards
Richard
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“I made 4.18% for a 3 month investment. Annualised = 16.58%!”
Hi, I have been with Fokas Beyond for two years. I virtual traded for about 8 months which enabled me to grow my knowledge and build my confidence in the strategy.
Once I was ready I transferred $20,000AUD and started live trading.
I quickly realised that if I had more money invested I could get a better return, so I sold my investment property and in late March 2018 I invested a further $120,000AUD into Fokas Beyond covered calls.
For the month of September my trades are:
• 1.08%, income= $258 Covered Call
• 2.59%, Income = $500 Covered Call
• 1.17%, Income = $279 New Call
• 0.73%, Income = $189 Covered Call
That’s $1,226 for the month of September that I can compound back into my investment.
I joined Fokas Beyond because I believed that George was genu ine and that covered calla would be a good investment strategy to grow my money over the long term.
There are a lot of investment schemes out there but I trusted the Fokas Beyond Team.
I definitely made a good decision investing in Fokas Beyond Covered Calls and will continue to use this strategy.
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So far for this financial year I have made $4,495USD of income with $107,500USD invested which equals 4.18% for a 3 month investment.
Annualised = 16.58%! (And the markets have been down the last couple of months)
The Fokas Beyond Team provide a great service. The coaches are really helpful. George provides regular emails with inspiration and advice.
The admin team are friendly and attentive. And the Fokas platform and App are great tools to keep up to date with your trades.
I highly recommend the Fokas Beyond Covered Call Strategy if you want to grow your wealth, but it does takes work and commitment.
It’s a long term strategy. But I can already see my wealth growing.
Kind regards,
Sean
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“I love being in control of my finances and love being able to work my own hours.”
I attended a wealth creation seminar in Melbourne about 3 - 4 years ago and this was when I first met George and was impressed with his story and could see that this strategy was able to be learned by anyone who wanted to learn.
It was then that I signed up and joined Fokas Beyond.
My reason for wanting to purchase the education is no different to why most people will purchase the education; hoping to achieve financial independence and work for myself working my hours.
I had also lost faith in financial planners and stock brokers.
I had a stock broker who I had never met and was advising me on what stocks to buy. In time learnt that his recommendations was not for my benefit but for his own.
I read through the course material and communicated with the coaches regularly for a few months. Things became a little challenging and I soon gave up on learning. This was due to a variety of reasons including health, work and family commitments.
A few years passed and I had overcome a health concern and I was now more determined to make this work for me.
In November 2017 I re-joined Fokas Beyond and felt that I was now fully committed to make this work.
I gave up my JOB in December 2017 to focus wholly and solely on the education and trading. I had set myself a few goals and one of them was to place my first live trade by February 2018.
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Shares that I had bought and held for years and years which equated to about $42,000 was transferred into an account that I had opened ready to re-embark on this new journey.
My first goal was achieved when my first live trade was placed in February. The two stocks that I had held for years and years had now generated me an additional income of $1,125, which equated to a 2.6% return for that month.
A year into my education and I now feel competent in placing trades and monitoring my own positions. It is now a new routine for me and it takes very little time - 10 minutes a day at most.
Thank you George, your program will give anyone who commits to it the education and financial freedom, if it is what they really want.
I would like to also thank the coaches for their dedication in helping me understand the strategy and also guiding me through understanding the platform and managing the trades.
They have helped motivate me and have played an immense role in my success in implementing the strategy on what can seem a daunting brokerage platform.
Below is a snap shot of my activity for the month of October for the two stocks that I currently continue to hold:
Total $ Return for the month of October is $400.00
Total % Return for the month of October = 3.44%
I love being in control of my finances and love being able to work my own hours. I am no longer governed by a boss who dictates to me when I need to be at work and how much I will be paid for my efforts.
Financial independence has allowed me to work the hours that I want so that I can spend time doing the things that I want with my family. It is a wonderful feeling.
Thank you
Maria
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“Fokas has given me hope that I can earn and build income to a level where I can work towards buying my own home again.”
My name is Tricia and I have been with Fokas for about a year and a half. However, for the first year I had other things to deal with and so didn ‘t really get going on the education properly until about 9 months ago and then started live trading about 6 months ago.
As a single mum, with no family around for support, I work part time so I can look after my son properly who is still at school and has some extra support needs.
I work in a low paid industry, despite having to be highly qualified and having a lot of responsibility.
We also lost our house through the divorce leaving me with no assets. Since then I got priced out of the housing market and have been in rental accommodation ever since.
My dream is to own our own home again so my son can have a cat again – we had to give our cat away as rentals don’t take pets in Sydney 95% of the time.
Getting back into the housing market is a huge struggle, but Fokas has given me hope that I can earn and build income to a level where I can not only give up my job, and replace my income, but earn more than my current income.
This way, I can work towards buying my own home again.
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There are so many other projects that I want to work on too, to express myself and fulfil my higher purpose, that I will be able to work towards when I have more time from earning through
Fokas as opposed to a JOB.
Last but not least, I am finding it really interesting and enjoyable learning about options trading and having the support, and sometimes a laugh, with the coaches!
An efficient laugh I hasten to add .... there ‘s no time wasting!!!
I am enjoying the whole Fokas adventure and appreciate you sharing your specialist knowledge and that you have such a great team, from the team in the office, the investor team, as well as the coaches.
I have found the level of support fantastic.
I am now very much looking forward to the next bootcamp.
My trades for one month are below:
• $208.92 in 9 days 1.19%
• $556 in 18 days 3.06%
• Averaging $382.46 in 13.5 days 2.12%
Totalling $764.92 in 27 days 4.25%
Kind regards
Tricia
THE 60 MINUTE CASHFLOW INVESTOR
192
“I now feel confident that I wlll have a significant amount of money in my super fund at my retirement.”
I’m Spiro and I have been with Fokas Beyond for a few months and already Fokas Beyond has changed me and my life in many ways.
I have had a few businesses over the years and always lived the financial roller coaster.
Many highs and even more lows. I got to a point where I accepted that I would never get ahead and would have to work really hard to just survive.
Then I stumbled across Fokas Beyond.
I turned up to one of George’s seminars. It was an amazing experience. He filled the room with this incredible positive energy. I remember the feeling very well and looking around the room, I could tell that pretty much everyone else was feeling the exact same thing.
He told us his story. He presented his strategy. He explained it in a way that was very easy to understand.
I have never had an interest in the stock market, so at first I was worried that I would never be able to do this. But George reassured us that his coaches and himself will guide and support us every step of the way. I knew at that point this was definitely for me and I signed up. I’m glad I did.
I wanted to try Fokas Beyond with my super fund.
At the end of last year, my total amount in my super fund was less than what it was at the beginning of the year. Sad right?
So I started to trade and now my super is actually growing.
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I am learning, and building wealth and confidence with the help, guidance and support from George, the coaches and the training videos together with the boot camps.
The first live trade I did made me 1.99% for 9 days gross or 1.72% net after brokerage.
I am amazed because now its real and in my account.
I’m actually excited about having super and feel confident that I wlll have a significant amount of money in my super fund waiting for me at my retirement. BOX TICKED!!!
I am super motivated to get my personal investor account up and running parallel with my SMSF investor account, to start building wealth that I can use right now.
Thanks to Fokas Beyond and the training , I now have a completely different mindset about my whole life and the way I see things and the way I deal with life. It has completely changed me in many ways.
It not only is teaching me how to live a better and positive life and in addition, patience with investing. Because we will not become rich overnight, it is a process and it takes time.
We have recently booked flights to Greece for a family holiday that I have not done in 21 years. All of a sudden it’s all coming together, my mindset and life has taken a huge positive turn already.
Thank you George. You reminded me to dream big again. You reminded me that I am the only one stopping me from success. You reminded me that if I put my mind to something, I can do it.
It is truly incredible.
Thank you,
Spiro
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“I am excited about generating my income in a way that suits me.”
As you say you’ve got to be in it to win it. I’ve been with FB since end October 2018 and went live middle of April.
I placed my first - Trade on 15 April eagerly anticipating it going through overnight. I was a little deflated the next morning, but I know from my virtual trading that can happen.
I subsequently placed a couple more collar trades which also did not go through and then quite a few days with no stock picks. I thought well I’m getting a good lesson in patience which is a really good thing .
Success came on the 9th May with my return being $390 or 2.92% for 8 days.
Then I placed a collar trade on 10 May which returned $354 or 2.06% for 7 days.
I was ecstatically happy with the results!
I had been looking for a way to generate income from home for quite a while. I am a single mum and on a disability pension due to a very long term chronic illness, hence the need to work from home.
It also could not tie me to the computer for too long, however generate enough to sustain me and my children financially.
I was at a one day seminar on property and George spoke at the end of the day. Immediately I knew it was what I was looking for. I signed up on the day.
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I am so glad I signed up and followed through with my first intuition. I am excited about generating my income in a way that suits me.
I like being part of “George’s family”. All the coaches have been so helpful.
Being with Fokas Beyond has given me the opportunity to work towards supporting myself financially.
My 19 year old son is also showing a great deal of interest and has started saving to join up.
Thanks so much,
Tess
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“This Investment Strategy will allow us to have choices.”
My name is Kim. I joined Fokas Beyond 5 years ago, after attending an event in Melbourne.
At the time, we were investing in property and could see the potential that this strategy could provide as another income stream to help prop up our rentals.
I got my Virtual Trading Account up and running to educate myself and gain confidence and knowledge for when I was able to commence Live Trading .
Virtual trading was proving to me that the strategy did (and does) work.
In October last year, a SMSF was set up and I took the leap to start Live Trading (with lots of excitement and nervousness) ....... YAY!
My Trades for the Month :
• 214 days $2139.00 = 8.45%
• 11 days $ 525.00 = 2.43%
• 64 days $1304 = 9.00%
• 11 days $392 = 1.18%
At the start of July I opened another Live Trading Account (Outside of Super) and this is what happened :
• 11 days $240 = 1.42%
• 10 days $192 = 1.16%
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The money I invested was sitting in our Home Loan to reduce interest. I was saving $136/month in interest.
I decided that investing the money was a better investment option :)
This Investment Strategy will get us back to a better financial position and it will allow us to have choices.
Choices to leave our J.O.Bs if we wish to, to travel and work in remote places and to buy or build our dream home.
We can take this anywhere we go and continue having our money work for us.
Slow and steady.
Thank you,
Kim
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“I love the fact that you can do this from anywhere in the world (yes I have done this!!). ”
My name is Kamal, I have been a big investor in property since 1992 and have consistently had success with this.
For a number of years I have dabbled in shares and traded with very good returns but was always uneducated on this... very risky!
I have always been interested in stocks and after a couple of years of hearing about Fokas through property events I decided it was something that I needed to do.
Of course family members started being negative ... be careful. ... people have lost lots of money ... etc etc ... But that’s the thing, you protect your capital so that you minimise your exposure. I am a big fan of diversification.
I really wanted to add this strategy to my wealth portfolio to accelerate my cash flow, pay down property debt and I just enjoy life that little bit more. Don’t get me wrong ... l definitely enjoy life already!
I joined end of January 2019 and went live end of June 2019 and honestly since joining I have not looked back.
I love the fact that once you have the education behind you, it doesn’t take much time at all and you can do this from anywhere in the world (yes I have done this!!).
I am absolutely still learning and will continue to dial in everyday as the coaches are amazing with their knowledge and patience.
Now to my live trades.
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I have only started with $10k AUS but I wanted to go live to continue learning as I felt like I needed to kick start the fear factor of using real money:
• Return $0.44 per share or 0. 78% 11 days
• Return $0.41 per share or 0.99% 10 days
• Return $1.12 per share or 2.27% 8 days
This strategy has made me excited again about moving forward and let’s not lie, about getting older.
I always thought that my retirement would be well funded and I would be able to do whatever I wanted, but this has taken it to another level where I can now see my family all sharing in this.
It means spending more valuable time with the family and not having to worry about making $$$$. This is probably the most important thing to me as my parents are both quite elderly now and having more time with them means everything.
Kind Regards
Kamal
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“The ten or so minutes I spend each night to generate the results I am seeing is absolutely phenomenal.”
My name is William, I am in my early 30’s, married seven years and have two children.
I am a Melbourne trained optometrist working in partnership running a busy and high volume practice. My wife and I own several properties that are tenanted either long term, short term (Airbnb), or commercially.
I learnt early on in life that to achieve what most people don’t have, you have to do what most people aren’t willing to do.
I have always been warned against investing in the stock market as it is unpredictable and can cause you to lose money.
But if George Fokas and thousands of others have found success with this, then why can’t I? There must be something they know that I do not, and I must find out what it is!
Four years ago I made the move from being employed to being my own boss as I wasn’t satisfied with my salary.
Our properties are either negatively or neutrally geared so the income is negligible. We have enough to live comfortably now, but our investments so far are only in capital growth, and it was time to secure more cashflow for the near future.
I am now six months into the program and so far it has been a real eye opener and nothing short of exciting. It had taken me three years to climb onboard and I only wish I had done so sooner.
I tell my patients it is my job to be “OCD” when refracting for their glasses prescription. So naturally I took the same approach with
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the education, spending two months carefully absorbing the theory, watching all of George’s boot camps at least twice through and speaking to the coaches on most days.
I have now been live trading for six weeks. I had one position (my very first trade) I managed to enter into in March. Stock held for five weeks, gross return of 5.6%, gross income of $341!
During the month I had the opportunity to write two options, both of which expired. With the help of a rise in the stock price between expiry and speaking with the coaches after the Easter long weekend I ended up closing my position all together grossing 10.7% in just under six weeks.
No doubt I was ecstatic with these results. I think about it all day at work and even dream about it at night.
The five to ten or so minutes I spend each night to generate the results I am seeing is absolutely phenomenal.
It is just the strategy we need as we are able to invest without a lot of locked up capital and receive income that we can access straight away.
My five year goal is to sell my shares in my business. I plan to step back from full time work to spend more time at home with the kids and hopefully finally have the chance to enrol into a PhD in optometry, something I have thought of doing for a while.
We all have the same number of hours in a day and days in a year. Being able to use this time the way it matters most to me is what I know Fokas Beyond will help me achieve.
I am grateful for Fokas Beyond I have yet another reason that makes me want to jump out of bed every morning!
Cheers,
William
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“The life changing potential of this strategy is just mind blowing and I am so excited to be a part of it.”
It’s Luke here!
I have been with Fokas beyond since late August 2018 and have been live trading for just over a week.
Even this early on, I can tell that joining Fokas Beyond has been one of the best choices I have ever made for mine and my families financial future.
This month I made my first ever live trade and earned 1.9% (US$270)for 1 day!
Up until now, I had dabbled in the Australian stock market and experienced nothing but loss and disappointment despite all the research I did.
This strategy has proved itself to me after only 1 trade!!
The life changing potential of this strategy is just mind blowing and I am so excited to be a part of it.
I can see my long term future sitting on the beach in a beautiful country, placing trades and having my money working for me. I now truly believe this is not a pipe dream!
Thank you so much George, I am very excited to continue this journey with you and everyone at Fokas Beyond!
Regards
Luke