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Welcome guest. Many times I have seen the question
asked:
How do I get rich buying stocks?
Or
how did you get so much NP for your stock portfolio"?
I have
tried to look back and see if I could find a way that would
help beginners find the
self supporting" portfolio
more easily.
I originally came up with this
15/30
idea as a way for me to sell
stocks and still grow my portfolio.
The more I thought about it, the more I realized the beginner
investors could follow this idea.
I am writing this with the perspective that the person playing the stock market game has little experience in the stock market. I know this is not the strategy of many, but it has been proven, this strategy will work.
The amount of stocks necessary to provide a self-supporting
portfolio can be as little as
30,000-50,000 shares, or a cost of 450,000-750,000 NP. It
would be
best to have this amount
set aside for buying when starting. If you are able to start
with
500,000 NP, and can
earn 5,000 NP each day, you will have sufficient funds to
produce
a self-supporting portfolio.
Before starting to buy stocks, remember, this is a long-term
goal.
For the example I am trying to
provide, I will choose 45,000 shares or 600,000 NP. (45,000
shares
x 15 NP/share=675,000 NP)
Phase 1 - build your portfolio.
Phase 2 - make it self-supporting
The selling of shares from your portfolio, to have NP to
continue buying more shares, is quite simple.
Only sell 1,000 shares as necessary. If a price really jumps,
and
you want to, maybe sell 2,000, but no more.
Every 2nd day, you sell 1,000 shares. Choose your highest
profit
stock, and sell 1,000 shares of it.
Most likely you will have 1 stock, which is at 30 or greater.
You
should, you have 25â� companies to choose
selling from, and the HIGHEST likelihood is for a stock to
cycle
between 6-30NP. Therefore, 1 will be at 30
or above, and by selling 1,000 shares of it, you now have NP
to
buy for today and tomorrow. Follow this routine
for 3 � 6 more months. The 6-month period will allow for your
portfolio to grow from 45,000 shares to a
135,000 shares. The last 90,000 shares bought by your
portfolio
profits.
In only 6 months you will have amassed a portfolio of great wealth. The 135,000 shares in your portfolio will have a value of approximately 2,000,000 NP. Yes, 2 million plus!! The initial investment of 600,000 NP has grown to a small fortune.
At this point, you should never have trouble buying your stocks again. The selling and especially buying strategies will change now. You are more experienced, have seen the highs and lows of the market. You have set your own goals, and want to try your own ideas. Now is the time to do it. The 15/30 has given you a foundation to continue to grow from.
This is by no means the end of the challenge in the stock
market
game. Next, and the reason you started
the
15/30
process; the
1,000,000 NP a Month Portfolio.
But I'll save that for another day�.
In case you wonder what my qualifications are for knowing anything about stocks, I have one of the largest portfolios amassed on Neoputz. I know of none that are larger. I have over 750,000 SHARES of stock, and my portfolio has started to produce 1.5 million NP or more profit every month. I do this while maintaining a constant portfolio size of 750,000 plus shares.
So you want to earn 1 million NP per month from your
stocks? We all do!!
Actually, quite a few players already do earn this much.
However, don't believe all the BULL you hear people bragging
about,
because 1 million NP every month isn't all that easy. Another
thing
to consider is it may work out to be an average income of 1
million
NP per month. Few players will ever earn 1 million NP, EACH
and
EVERY month. I will try to provide an example that will
provide an
'average' of 1 million NP per month.
On a side note. If you are reading this guide in hopes of
finding a quick way to 1 million NP per month, then go away,
you are
wasting your time. This is written for the players that are
very
serious about playing the stock market game.
If you are still reading, then I assume you are serious about
playing this
game. I will also assume, that you have completed the
15/30
and are
now working with a self-supporting portfolio. That also
means, you
have between 135,000 and 150,000 shares of stocks. They are
most
likely spread across 30-35 companies. To average 1 million NP
a
month, you need more shares. You need a larger portfolio.
Sorry,
but that is the way it is. You will probably need another
100,000 to
150,000 shares. Don't be so shocked. Big rewards take big
portfolios. It is only another 3-6 months to build your
portfolio
another 100,000 to 150,000 shares. During this growth
period, it
might be a good time to raise your sell price to 45-50. This
will
slow your sales, and provide enough income to still buy your
daily
shares. However you decide to do it, you need to grow your
portfolio
to 250,000 shares minimum.
Now that you have made it to over 250,000 shares in your
portfolio, it is time to look at selling stocks to make these
1
million NP per month. (average) This is really just a
mathematical
problem. Assuming you have 30,000 shares to sell each month,
which
should be probable, because of the quantities and diversity
of your
portfolio. The price needed to average when selling is,
1,000,000 NP divided by 30,000 shares sold, or
1,000,000/30,000=33.333 per share (profit). For simplicity, I
will
use 35 NP per share. Also remember, this is PURE profit, so
we have
to add the cost of the stocks, because we will continue to
buy
30,000 shares every month, and we want the profits from our
stocks
to keep buying our stocks. (remember..
self supporting portfolio
).
Assuming the cost of our stocks are 500,000 NP per month,
that is
approximately 15 per share, which added to the 35, means we
need to
sell for 50 NP per share on average to earn 1,000,000 NP per
month.
Did you get that?
It might seem a bit confusing,
so I will try to describe it another way.
Each month we spend 500,000 NP buying stocks, and we want our
sales of stocks to buy those shares, PLUS earn 1,000,000 NP
per
month. (average) That means our total sales per month need to
be
1,500,000 NP. (This 1.5 mil needs to be earned from the sales
of
30,000 shares. That makes for an easy equation.
1,500,000/30,000=50
NP. That is the AVERAGE price we need to sell our 30,000
shares
for.
I will assume you have approximately 6,000 to 10,000 shares
in each
of the companies you own stock in. I would suggest trying
this
approach to selling. If you have quantities in a company
greater
than 3,000 shares, sell these at a price of 45 NP per share.
If you
have 3,000 shares or less of a company, wait for a price of
55
before selling. This approach will provide an average of 50
NP per
share. It also means, your sell price of each stock is now
dependent
on the quantity you have, combined with the price the stock
is at.
If by chance you had 8,000 shares of a company when the price
first
reaches 45, I would suggest selling 4,000 and saving 4,000
for 55.
Hopefully you get the idea. Sell 50% at 45 and 50% at 55. If
you
are bold and daring, you can wait for even higher prices.
This
gamble can make the game more interesting and more
profitable. It
can also force you to wait and be even more patient. The
unfortunate
side, is, you ARE going to miss some sales sometimes. Some
prices
will drop, and leave you left holding your shares. Get use
to it.
When you start pushing the limits, these things will happen.
Don't
worry, the next time a stock goes on a run, you will just
have that
many more shares to work with.
Here are some examples of what I meant by the above selling
strategy. This is sometimes referred to as a
staggered' selling strategy. (my personal favorite)
Total shares in Tpeg=6,000
Total shares in Company vPTs=8,000 shares
Total shares in tnPT=7,000 shares
Total shares in EEEEE=10,000
The unpredictable part is: will you be able to sell 30,000 shares each month? Probably not. Some months might be 20,000 and others 40,000. In the end, it should 'average' out to about 30,000 per month. The end results will depend on luck and on patience. If nothing else, follow this selling pattern, and if you don't make the 1 mil a month, you will at least increase the size of your portfolio. As it grows, eventually it will reach a 'balance' where the 1,000,000 million NP becomes a reality. I don't want to scare anyone away from trying this, but it may even take a portfolio size of approximately 300,000 shares to reach this goal. Don't be afraid to keep playing and growing your portfolio. The bigger the portfolio, the MORE potential for greater profits.
Remember, you spent 6-9 months achieving a
self-supporting portfolio. Don't be afraid to wait
another 3-6 months to see this
1,000,000 NP goal achieved. This is a game of patience,
nothing
happens overnight. Hopefully, in a short time, you will
repeatedly
make your 1,000,000 NP per month. Now that you have done
this, you
have probably reached the most efficient way of playing the
game.
Once you are achieving 1 mil a month, you may consider
raising your
2 sell points to 55 and 65. The most profitable price seems
to be
somewhere between 58 and 64. It will cause your portfolio to
grow
slightly, but that will increase your profits per month
also.
The last goal will be to go for the 2 million NP per month.
This is
an extreme task, and as best I know, only being done by one
or two
people.
As before, that is another strategy that I shall save for
another day.
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