Planning Your Stock Trades

and the Power of Allocation

Congratulations, you've opened an online trading account!

What's your next step? The answer is simple: Define your trading strategy and make sure that allocation is working in your favor. 

In the Wealthy Investor program I teach my students how to sell in and out of the money covered calls to generate monthly or weekly income in the stock market. The next thing I teach them is to make sure they understand the power of allocation.

What is allocation?

Simply stated, allocation refers to what funds you are going to actively designate for trading in the stock market, and what funds you are going to designate for investing in the stock market.

Believe it or not, the right allocation can grow the value of your online trading account exponentially. In other words, if you knew you were going to invest this months trading profits into stocks that increase their dividends and have a tendency to rise substantially over a 5-year period, you would be stacking the deck in your favor and putting allocation to work for you.

There are 3 reasons why most retail traders experience marginal success in the stock market:

1. They don’t have a plan for their trading profits.

2. They don’t have an eye for allocation.

3. They don’t trade and invest in upward trending stocks.

Here’s an allocation plan I’ve seen prove itself over and over again:

Put 1/3 of your trading account in long-term Dow Jones Industrial stocks.

Put 1/3 of your trading account in stocks that are members of the S&P 500.

Put 1/3 of your trading account towards producing covered call income. 

Remember when you place money in the stock market, there’s always a risk. To further reduce your risk, it’s also a good idea to only trade and invest in Dow stocks and S&P 500 components that are upward trending, have four quarters of top-line revenue growth, and three years of annual revenue growth.

The above allocation plan will allow you to manage risk and produce monthly profits just as a professional hedge fund manager would.

Below, in episode #4 of Wealthy Investor TV,  Tyrone Jackson interviews Greg Vojtanek about his stock market trading success.

Tyrone Jackson, The Wealthy Investor, teaches strategies that any retail investor can master. Mr. Jackson is also a published author. His best selling books Millionaire Money Habits and You Should Be Rich By Now quickly rose to number one on Amazon.com in the Investing and Business sections. His Trading Stocks Made Easy Podcast is heard by listeners around the world and in this episode Tyrone interviews some of his most successful students and gets their views on trading and investing.

It’s your time, so go to WITradeschool.com to start YOUR journey toward financial success.

Click here for more info.

In the Wealthy Investor program I teach three major strategies:

Covered Call Writing: Covered call writing allows any investor to generate $500 to $5,000 per month.

Dividend Capturing: Institutional investors collect millions of dollars per quarter collecting dividends on Dow components like Home Depot, Verizon and AT&T. So can you.

Volatility Trading: Volatility allows you to purchase a stock and program a sell order in your online trading account which will sell the stock once the price rises a specified amount. As stock prices change throughout the day, you’re making money while you are out enjoying your life.

If you want to follow my weekly stock trades and have me answer your questions click here to sign up for WITradeSchool.com. Click here now.

Yes, you can be a wealthy investor if you get started right now.