Yong-Long Lai

Free Share Prices and Charting:

• Australian Stock Exchange
• www.bigcharts.com
• www.stockcharts.com

Stock Resources:

• www.bloomberg.com
• finance.google.com
• moneycentral.msn.com
• earnings.com

Here is a list of good brokers that I know of:
Full Service Brokers

• Tricom
• Kinetic Securities
• Halifax

Online Brokers

• Commonwealth Securities Ltd
• Sanford Securities
• netwealth
• Spectrum Live
• Option Xpress – Practice trading before putting money on the line. It’s just like investing but without the risk!

Personally, I use Tricom for my full service broker. I also have a Halifax account open, which I get lots of recommendation. In addition to this I also have access to Kinetics Securities recommendations which are quite helpful. If you are trading the US market, I highly recommend optionsXpress! its so damn good!

I must be share junkie, cause I also have an optionsXpress, comsec and sanford account too.

I especially like how the recommendation is structured from Kinetics Securities, Halifax & Tricom have great recommendations too, just that it looks better in Kinetics.

An Alternative Strategy To Protect Yourself From Downside Risk And Reduce The Amount Of Money Required To Start

• What If You Want To Generate CashFlow And Be Protected From Market Events Such As September 11, Tech Bubble Burst, Asian Crisis, Share Market Crash etc.
• What If You Do Not Have A Lot Of Money To Buy Shares To Rent Out OR Do Not Have A Lot Of Money To Promise To Buy Somebody’s Shares
• Finance Gurus Call This Strategy “ Spreads“, This Section Will Go Through An Example Of “Bull Put Spread” – Bull Means We Expect The Share Market Going Up
• You Make Money Because You Made A Promise To Somebody That You Will Buy Their Shares If They Ask You To Buy It From Them (You Receive A Small Fee For Your Promise) At The Same Time You Insure Yourself Buy Buying A Put (You Pay A Small Fee For Somebody’s Promise) – Chances Are You Will Keep The Promise Fee If The Market Is Flat/Raising OR You Buy Their Shares From Them At An Agreed Price (You Still Keep The Fee!!!)
• The The Downside Risk Is The Difference Between The Promise You Made And The Promise You Bought
• Cash Requirement: You Only Need To Have The Maximum Possible Loss That Can Occur If The Market Turns BAD

Spread Example

• Say Share XYZ Is $10 Today
• You Promise To Buy XYZ For $9.50 – Your Receive $0.40
• You Buy A Promise From Somebody Who Promises To Buy XYZ For $8.50 – You Pay Them $0.10
• Your Net Transaction Is $0.30 Cash In Your Bank Account
• Say, If XYZ Is More Than $9.50, Nobody Would Want You To Buy Their Shares For $9.50 Because They Can Get Somebody Else To Buy It For More. In Addition, You Will Not Use The Promise You Purchased For The Same Reason – End Of The Day You Get $0.30 For Making A Promise
• Say, If XYZ Drops To $1.00 Because Something Bad Happened In The Market, You Will Have To Fulfil Your Promise And Buy XYZ For $9.50 Then You Use Your Insurance Policy And Sell It Back To Somebody Else For $8.50 Instead Of $1.00 (Current Market Price) – End Of The Day You Lose $1.00 Minus Your The $0.30 In Your Bank Account You Already Received

 Educate Yourself On How To Do It Right

• Where Do I Start? – Free eBook
• The Home Study Also Teaches You How To Set Up Tax Effective Company And Trust Structure To Protect Your Assets And Pay Less Tax
• Master The Stock Market (A MUST For All New Stock Market Investor) – Zero To Hero

This is the strategy that I personally trade. Its one of my favourite strategy, however I am currently looking into CFD to accumulate assets and also covered calls (share renting) for alternative cashflow strategy.

How Selling Insurance Work

• Selling Insurance Is Equivalent To What Finance Gurus Call “Selling Puts”
• The Selling Insurance/”Selling Puts” Strategy Allows You To Make Money When The Market Is Flat OR Going Up
• You Make Money Because You Made A Promise To Somebody That You Will Buy Their Shares If They Ask You To Buy It From Them (You Receive A Small Fee For Your Promise) – Chances Are You Will Keep The Promise Fee If The Market Is Flat/Raising OR You Buy Their Shares From Them At An Agreed Price (You Still Keep The Fee!!!)
• The Downside Risk Is The Market Falls, i.e. September 11, Tech Bubble Burst, Asian Crisis, Share Market Crash etc.
• Cash Required: You Will Need To Have The Ability To Purchase The Share If The Person Takes You Up On Your Promise

Generate CashFlow – Sell Insurance On Shares

• Everybody Buy Insurance To Protect Their Assets – Pay Premium To Insurance Company And Hope You Do Not Need To Make A Claim
• Did You Know You Can Sell Insurance And Receive Premiums?
• Its Simple, Find A Share You Would Like To Insure And Get A Broker To Collect The Premium For You – Learn How To Sell Insurance And Collect Premiums
• Again, no need to be a hero, I don’t think I would be able to do any of these strategies if it weren’t for the seminars and educational material I purchase. Obviously there is going to be people out there who do not think its worth the money to purchase these sort of knowledge, all I can say is, I hope you have a mentor to hold your hands, else good luck! Nik Halik is one of the best stock educator I have met, he has the natural ability to educate people from zero to hero. I highly recommend you get some of his material.

How Renting Shares Work

• Now That You Know The Basics Of Options, The Examples Below Will Show How Smart Investors Generate Income With Low Risk
• Renting Shares Is Equivalent To What Finance Gurus Call “ Covered Calls“
• The Renting Shares/”Covered Calls” Strategy Allows You To Make Money When The Market Is Flat OR Going Up
• You Make Money Because You Made A Promise To Somebody That You Will Sell Your Shares If They Choose To Buy It From You (You Receive A Small Fee For Your Promise) – Chances Are You Will Keep The Promise Fee If The Market Is Flat OR You Sell Your Shares To Them At A HIGHER Agreed Price (You Still Keep The Fee!!!)
• The Downside Risk Is When The Market Falls, i.e. September 11, Tech Bubble Burst, Asian Crisis, Share Market Crash etc.
• Cash Required: You Will Need To Have The Initial Money To Purchase The Share – Could Be A Costly Investment For Some

Generate CashFlow – Rent Your Shares

• Everybody Knows How To Rent Houses – Buy A House And Get An Agent To Rent It Out
• Did You Know You Can Rent Your Shares?
• Its Simple, Buy Some Shares And Get A Broker To Rent It Out – Learn How To Rent Your Shares
• All I can say is, don’t try to be a hero and do it all yourself, invest in knowledge! Listen to Nik Halik