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MASTERMIND INVESTING
The most simplified and strategic way to invest in the stock market.
THOMAS WASHINGTON JR. & DR. KENNEDY NDAMBA
ISBN (Print Edition): 978-1-09835-657-6
ISBN (eBook Edition): 978-1-09835-658-3
© 2021. All rights reserved. No part of this publication may be reproduced,
distributed, or transmitted in any form or by any means, including
photocopying, recording, or other electronic or mechanical methods,
without the prior written permission of the publisher, except in the case of
brief quotations embodied in critical reviews and certain other
noncommercial uses permitted by copyright law.
Give a man a fish and you feed him for a day.
Teach him how to fish and you feed him for a lifetime ~ unknown.
I (Thomas J. Washington JR.) dedicate this book to my mentor Dr. Joseph
D. Warren, my superhero, rest in power king (04/02/1938 - 03/28/2010). I
also dedicate this book to my amazing daughter who is my motivation to
everything that I do Ava Brooke Washington. Daddy loves you always and
forever, you can do anything, you are important, intelligent, beautiful, a
phenomenal being and so much more. You have no limits!
Table of Contents
INTRODUCTION
Growing up in the Projects
Why should you listen to me?
CHAPTER 1
Stock market crash course
CHAPTER 2
Understanding the difference between investing, trading and gambling
CHAPTER 3
Get money and buy income
CHAPTER 4
Backdoor Chromosome Strategy
CHAPTER 5
Fundamental Analysis
CHAPTER 6
Technical analysis crash course
CHAPTER 7
True Mastermind 10 trading commandments
CHAPTER 8
Golden tips for success
CHAPTER 9
Insurance & Investor’s apps
CHAPTER 10
Resources: Brokerage List
CHAPTER 11
Take Home Message
CHAPTER 12
Bonus Section
About the Authors
Thomas Washington Jr. Bio
Dr. Kennedy K Ndamba bio
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INTRODUCTION
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Growing up in the Projects
“It’s not your fault if you were born poor, it’s your fault if you die
poor” ~ Bill Gates
Pow pow pow, became something that was part of a routine to my ears
growing up in poverty-stricken projects in Boston, MA. Gunshots ringing
out, police sirens 20 minutes later (because they always took their time),
almost became music to my ears. Tragedy and violence were rituals in the
projects growing up. It is sad to think that was the norm for my upbringing.
Watching my single mother struggle to make ends meet, I (Thomas
Washington Jr.) knew early on what I didn’t want my future children to
experience. I knew I had to learn how to make money and teach my loved
ones to do the same. Growing up in a toxic environment and lacking even
the basic needs, my desire to make myself be a master of making money
grew even stronger. I wanted to never lack financially, and I wanted to
make sure that other people like me had the knowledge and resources to at
least hunt for their own.
While most of the members in the community were practicing their jump
shots to be the next Kobe Bryant (R.I.P Black Mamba) or cooking up crack
cocaine, I drowned myself in books like 1984 and Animal Farm by George
Orwell, Intelligent Investor by Benjamin Graham, Think and Grow Rich by
Napoleon Hill, Rich Dad Poor Dad by Robert Kiyosaki, and many other
books. I was fortunate to learn early on that education was key, financial
education was even better, though it didn’t mean institutionalized education,
self-education was stressed to also be just as important. Growing up with
nothing, I realized that my intelligence was my superpower and if I desired
to make money, I had to broaden my intellectual horizon. With education
being my only hope growing up, I knew I had to do everything in my power
to use it as my outlet, which resulted in me being a phenomenal student, I
got straight A’s, academic awards, even a president’s award from former
President George Bush.
When I was in middle school (2007) I got an opportunity to meet the
director of the Youth Development Initiative Project (Y.D.I.P program) at
Northeastern University, Dr. Joseph Warren. The late Dr. Warren grew up
poor himself, perhaps hence why I easily gravitated towards him and his
teachings. He became a great mentor towards me. He introduced me to the
stock market. It was a brand-new world that I became eager to explore. This
introduction forever changed my life. I became obsessed with the stock
market. I wanted to learn everything about it, I became a true student of the
game. I wanted to super succeed, not just make it.
Unfortunately, our current school system and institutionalized learning
programs don’t prepare us with the financial tools we need to excel in the
real world. Too often, we are given basic tools to stay average. With so
much racism and stereotypes in America, as a black man growing up, I
feared not getting hired or finding the best job to support my lifestyle and
family after college. Fortunately, through Dr. Warren I found a way to make
money just knowing numbers, which I was already good at. This gave me
comfort knowing that nobody would be able to discriminate against me
because of the color of my skin. It was all numbers. A new love was born
and that was the foundation to fuel my desire for making money in the
stock market and teaching others like me how to make money doing the
same.
As cliché as it sounds, “Give a man a fish and you feed him for a day. Teach
him how to fish and you feed him for a lifetime” ~ unknown. Oftentimes in
our black communities we are wired to wait for the government to give us a
handout or to save us. We are conditioned due to the systemic racism,
marginalization, slavery and the long wait for the reparations. Though, I
agree the reparations are long overdue, but they might never come. It is up
to us to create our own opportunities. We can be the change and hope we’ve
been waiting for. Self-made billionaire, Tyler Perry is a great example of
someone who started from the bottom with being homeless, built his own
empire, instead of waiting for a seat at the table, he built his own table to
share with others. Tyler Perry is now one of our role models in the black
community who is giving opportunities to others.
This book is not about my life and how I grew up. However, I figured I’d
give you a short synopsis of how like many others I’m from the bottom of
the bottom. I share my story and experience so you can relate. I try to teach
you how to go out and fish for your own, so that you don’t have to rely on
other people. In this book I try to put things into perspective where you can
understand vs. the jargon used on Wall Street, which almost sounds like a
foreign language. Many times, people on Wall Street try to make it feel like
the stock market is very complex, but I am here to show you and inform
you that it’s not as complex as they make it. I try my very best to provide
you with all the tools in my toolbox for you to get the job done.
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Why should you listen to me?
Over the years, I have made many mistakes investing, however, I have
learned from my own failures/experiences. From paper trading as a teen to
live trading in college, I have learned some things from experts like Warren
Buffett, Benjamin Graham and others. I have also learned a lot from my
own failures which pushed me or encouraged me to come up with winning
strategies so that you could fast forward to making money and skip the
trials and errors which in many cases cost a lot of money and time you
don’t get back. My strategies have been time tested and proven to work if
you stick to the rules and use the strategies effectively. I have over 14 years
of experience in trading and investing. I’ve worked in retail banking and
investment banking which has furthered my financial education. Over the
years, I have helped hundreds of people learn how to make consistent
streams of income from investment vehicles such as the stock market, real
estate, how to build good credit and make money from credit cards. I also
introduce to you my best strategy that I coined and has made me a fortune
over the years. This strategy does not exist on the market and I have not
read a single book talking about this particular strategy. If you’re a beginner
this strategy gives you a competitive advantage and if you’re an advanced
investor it just makes you that much more efficient at making money from
the stock market. Keep reading and towards the middle of the book I will
reveal everything about the strategy.
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CHAPTER 1
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Stock market crash course
What’s the stock market? A stock market is the place where buying and
selling of stocks takes place. These transactions of buying and selling
stocks are done on a brokerage via the Internet. Stocks are traded or
invested daily all over the world.
Real World example: Sneaker example
On November 30th, 2020 - edited from my 2016 Tesla example Explaining the stock market from the buyer & seller side, using
sneakers as an example:
Seller Side: You have some Jordans. You heard somewhere that they’re
worth $200 so you list them online for $200. Somebody messages you
saying they’ll give you $250 for them if you take the listing down offline
ASAP.
You go to take it down and somebody else messages you, they’ll give you
$300. Now you are wondering how much they’re actually worth, so you
leave them up and raise the price to $300.
Someone messages you $325 if you take down the listing. Someone else
says $350, and then other offers come in for $400, $450, $475… You say
“Ssssheeeeessshhh I’m listing these damn things for $750”.
Crickets. Nobody messages you. So, you drop the price to $700. Still
nothing. “Maybe $650, yeah they’ll sell for $650.” But still nothing so you
drop it down to $600. And…nothing. “Ok $550 then, screw you guys (you
say angrily as you edit the listing price again).
You get some views but still no offers, so you lower it again to $500. You
get some messages, and two people say they’ll come pick them up. But the
buyers don’t show up.
Then the person who offered you $475 messages you again asking for
feedback, so you finally sell them for $475.
The market specified the price by saying what price they would and would
not buy at. That forced you to lower the price to be able to sell them. This is
exactly how stocks work. For every stock being traded, there is an order
book that shows all the buy orders at all the different prices and all the sell
orders at all the different prices. The price of a stock is reflective of what
people are willing to sell and buy it at.
Apple’s stock ticker symbol is AAPL, as of 11/30/20 at 1:03PM it was
priced at $119.15 per share but there were buy orders on the books as low
as $109.14 and sell orders as high as $129.15 as you can see below on
Robinhood.
Image above is an original image from Robinhood, the squares were added
to highlight key numbers.
This means there are people trying to buy Apple at $109.14 per share and
people trying to sell it at $129.15 per share. The price is actually $119.15 so
nobody that wants to sell the stock will sell it for $109.14 and lose money.
And nobody will buy for $129.15 when they can buy at $119.15.
The current price of a stock is simply the market value. It is the mesh point
where the average buyer and seller are comfortable making the transaction.
If the company is doing well, people are more likely to pay a premium for
their stock, and vice versa. Which leads us to the flip side.
Buyer Side:
You play the seller. I’ll play the buyer…
You were having an ignorant moment selling some Jordans for $200 that
can resell for $500. So, me being the hustler I am, I see an opportunity. I’m
hoping you sell them to me for $250 so I can double my money ASAP.
You ignored my messages and I saw you increase the price a couple times,
so I knew you got hip that you were undervaluing your price. You still had
them listed at $400 at one point, which was still a discount, so I placed
another offer.
You ignored me again and increased the price again to $425. I’m over here
like “this dude is really playing hardball now. Ok I see you!”
So, I send you my final offer at $450. I could still sell them for $500 and get
about 11% return, the lowest return I’m willing to take.
You being the annoying seller you ignore my offer again, and I see them
sell to someone else for $475 *shaking my head. All I did was increase the
amount you got by showing you my interest and showing you that you were
undervaluing the shoes.
Which is how stocks work. You buy shares of the stock of a company for
one reason; you think the value will go up. If you see Apple selling for
$119.15 but you think the actual value based on your analysis is around
$128, then you’re willing to buy at $119.15. You’re even willing to buy up
to $121 price point. By telling the market you’re willing to buy at $121, the
sellers of Apple stock will test it and see if you (and others) will buy at
$121 despite the market price at $119.15.
If you are willing to buy at $121 then the market value just increased to
$121. And vice versa. If you like Apple but don’t think it is technically
valued at $119.15 right now due to your analysis, you can try to buy it at
$118. If you successfully buy it at $118, then the market is telling you the
stock may be overvalued. So, there you have it. That’s the mechanics
behind the constant changes of stock prices. Markets are just people buying
and selling. The more you can simplify the stock market, the more
comfortable you can be with investing.
What is a stock? A stock is basically a slice of ownership of a company.
A stock is issued by a company in a form of shares in order for the
company to raise capital; investors then buy the shares in order to
acquire a portion of the company. “Shares,” is more specific and refers
to ownership of a particular company. When you buy shares in a
company, you technically own a small piece of that company and
you’re called an investor. Hence why you should buy shares of stock in
companies you truly care about. You should at least believe in their
philosophy or fundamentals of their business before you start to invest.
For example, if a company has a good core business, clear objectives,
excellent execution such as Apple and Amazon then that would be a
good company to invest in. However, you have to identify those
companies when they’re still undervalued.
What is a ticker symbol? A ticker symbol or stock symbol is an
abbreviation used to uniquely identify publicly traded shares of a
particular stock on a particular stock market exchange. For example,
the Apple ticker symbol is AAPL.
What are stock exchanges?
The most known stock exchange is the New York Stock Exchange. A stock
exchange is basically the stock market where owners of shares and
interested buyers meet to be able to transact. Companies interested in
raising money, list themselves on the stock exchange.
Other Major Stock Exchanges
NYSE.
Nasdaq.
Tokyo Stock Exchange.
Shanghai Stock Exchange.
Hong Kong Stock Exchange.
How much money is in the stock market? It’s hard to know the exact
amount because it changes day to day, however, it’s safe to say that the
amount is trillions of dollars.
How can I Invest in the Stock market? You can invest through a
stockbroker. See detailed list of brokerages outlined later on in this
book. You have to complete an application and verification of your
identity. Once approved, you link your bank account to transfer funds
to your stockbroker account, then you can start trading/investing.
Nowadays most brokers are commission free. You can also buy directly
from the company through their investor relations departments on
their websites.
What is an IPO? A public offering or an initial public offering (IPO) or
stock market launch is a type of public offering in which shares of a
company are sold to institutional investors and usually also retail
investors. This is when a company decides to go from being private to
public and lists on the stock exchange for more investors. This gives the
company a chance to raise capital to grow its business.
Can I invest in companies outside the United States? Yes, you can as
long as they’re listed on the stock market exchange, you can also invest
in foreign companies. This is also a great strategy and allows you to
diversify your portfolio.
What is a portfolio? A portfolio is a collection of all your investments
such as stocks, bonds, ETFs, real estate, etc. You can decide to manage
your portfolio yourself or have a financial manager manage it on your
behalf. However, the advantage to managing it yourself is that you’re
your own pilot to your financial freedom. Like the old saying goes,
“never put all your eggs in one basket.” Diversifying your portfolio is
critical.
What is portfolio diversification?
Diversification allows you to reduce and manage your risk by allocating
investments among various stocks, ETFs, bonds, and other categories.
Diversification helps with maximizing returns of your investments while
minimizing your losses. Always diversify. Most financial investors use the
80/20 rule, allocating 80% of their portfolio to conservative stable
investments and 20% to more volatile unstable investments that can allow
for portfolio growth.
What is an ETF? According to Investopedia, an exchange-traded fund
(ETF) is a basket of securities that trade on an exchange, just like a
stock. ETFs can contain all types of investments including stocks,
commodities, or bonds; some offer U.S. only holdings, while others are
international (Investopedia, 2020).
A good example of an ETF is Ark Invest (Ticker symbol: ARKK), which is
an ETF that trades technologically innovative companies for the future such
as Tesla, Spotify, Roku, Square and many others.
What is a security? Securities are fungible and tradable financial
instruments used to raise capital in public and private markets.
Fungibility is the ability of a good or asset to be interchanged with other
individual goods or assets of the same type (Investopedia, 2020). For
example, one share of Apple stock in the US will always be worth the same
as one share of Apple stock in China
What is a bear market and how long does it last? A bear market is
when a market experiences prolonged selloff or decline of 20% or
more.
This happens when the market is continuously trending down aided by
negative investor sentiment or economic downturns such as a recession.
A bear market can last for a week, a month or even several years.
What is a bullish market and how long does it last? A bull market is
when the price of an asset or security continuously rises 20% or more.
This happens when the market is continuously trending up aided by positive
investor sentiment or economic growth.
A bull market can last for a week, a month or even several years.
What is a dividend? A dividend is a token of reward paid to the
shareholders for their investment in a company’s equity, and it usually
comes from the company’s net profits.
A board of directors in a publicly traded company decides on the dividends.
An announcement of dividend payout usually leads to an increase or
decrease in a company’s stock price.
What are REITs? REITs are Real estate investment trusts, which
provide an affordable way for individual investors to invest in the real
estate market.
Investing in real estate assets is one way to diversify your portfolio and
increase returns.
REITs are share-like securities that give you access to either equity or debtbased real estate portfolios.
REITs typically invest directly in properties or mortgages.
An example of a REIT would be XLRE ETF
What makes up the stock market? The market is made up of different
sectors. S & P 500, utilities, healthcare, materials, real estate,
industrials, technology, energy, financials, communications, etc. All of
these sectors collectively are made up of publicly traded companies.
What is paper trading? Paper trading is a simulated market
environment where the participant gets to practice with fake money
buying and selling stocks, rather than placing actual orders with real
money at a brokerage. Paper trading is recommended for you to
practice your skill and develop your techniques and strategies without
losing your hard-earned money.
What causes the stock to move up or move down?
Supply and demand
Speculative pressure and FOMO (Fear of missing out)
Analyst upgrades/downgrades
Company news or press conference
National news such as GDP, epidemic, etc.
Change in company’s board of directors
Earnings beat
Company raised forward guidance
FDA approval or disapproval
Dilution (company offering more shares)
What should I do if there’s a huge selloff in the market?
The best thing to do when there’s a selloff in the market is hold. Panic
selling only makes you lose money. If you did your due diligence and value
invested, you shouldn’t worry about the fluctuations in the market. The
stocks always rebound. Also, when there’s a selloff, it’s always an
opportunity for you to add to your position.
What days and time is the stock market open?
The stock market is open Monday to Friday, except on national holidays.
Regular trading hours are 9:30am to 4:00pm. Pre-market hours are 4:00am
to 9:30am and aftermarket hours are from 4:00pm to 8:00pm.
Always start with why? Why is the market up or down? Why is the
stock up or down?
A simple research on Google news, MarketWatch or Yahoo Finance will
inform you of all the most recent updates or if you have “thinkorswim” you
get updated news right on the platform. You need to look globally (Macro
view) and then locally (micro view). What’s happening in the world or in
the nation has a huge role on how the market responds and how your
investments are affected. For example, something like a pandemic affecting
the world or a US presidential election or change in a law, all those factors
do affect the market.
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CHAPTER 2
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Understanding the difference between investing,
trading and gambling
First off investing and trading are games of wisdom and gambling is a game
of chance. The first two are only considered gambling when you have no
strategy or knowledge of what you are doing. Many people confuse trading
securities like stocks, bonds, options and ETFs with investing in them. The
main two differences between the two is time. Investing typically means a
longer period of time than trading. When you invest in something you put
the money into it to grow over a longer period of time before selling. If you
are a trader, you are actively and strategically watching prices to buy
something low and sell it higher in a short period of time. There are 3 main
types of trading and then there is investing.
You may ask yourself “how much money do I need to start day trading,
options trading, swing trading or investing?” Day trading is when you buy
securities like stocks, bonds, options etc. for a lower price and try to sell
them higher within the same day. For day trading, I could say you can start
with as little as $500 and either grow it gradually by adding money to it or
by making smart trades. The PDT rule is known as the pattern day trader
rule which requires you to have a value of at least $25,000 to day trade
more than 3 consecutive round-trip trades in a row which means buying and
selling the same company on the same day. It takes 5 business days for each
round-trip day trade to fall off the report. If you are flagged for breaking the
PDT rule your account gets restricted/frozen for a period 90 days (3
months).
Options trading is when you buy a call option contract for a stock you
think will go up and sell for more or buy a put option contract for a
stock you think will go down. I would say about $500 - $5,000 but you
can get started as little as $30 because I have taught someone during
the pandemic to turn $30 into over $6,000 within just three months.
Swing trading is an active approach to the markets where the planned
holding time of the trade extends beyond a day (overnight) and the goal
is to capture a single leg (swing) in a stock’s trend. I would say starting
with $500 is good and you can scale up as you go like the others.
Lastly, investing in the stock market is when you are buying a security and
leaving it alone to grow your money. Anything over a year invested is
called a long-term investment, and anything under that is short term.
Investing you can start with as little as $1 and you can make periodic
investments. A tip for growing your account gradually is having a small
portion or percentage of your paycheck go straight to your investment
account. A friend of mine started with $25 and grew his account to $30,000
in over 3 years. They even have fractional shares investing in some
brokerages, which basically is buying fractions of shares of a public
company in an affordable way. Whenever investing in the stock market
don’t be overwhelmed if you don’t feel like you have “a lot” of money to
get started. Whatever money you can afford, put in, if you stay consistent in
investing in stocks your shares will accumulate like the snowball effect.
Which is like when you visualize a snowball rolling down a hill or
mountain it is picking up more snow as it keeps going and increasing in
size.
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CHAPTER 3
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Get money and buy income
This section is one of the most important gems I can give you. My mentor
told me when I was younger “Imagine playing Monopoly and never buying
anything that could produce more money, just collecting your $200 for
passing go,” - Dr. Warren. This is how many people actually live their lives
collecting the same paycheck year-round. If you play like this, as I’m sure
you are aware if you have played before, you will be out of the game
quickly. The United States is a capitalist country and is basically a game of
Monopoly. An adult having multiple streams of income is no longer a
luxury, it is a necessity. I don’t care what you do for a living, having one
source of income is dangerous! The type of investor I am, the main goal is
to turn quick money into forever money. It is easier now than ever before to
get rich (thanks to the internet & social media), but hard to stay rich without
the proper financial literacy to build wealth. When I make successful trades
or business income, I invest the profits into other assets that will pay me
and my family forever. As a cash flowing asset investor, I live by this. A
cash flowing asset is an asset that pays you an income. While you wait for
the asset to appreciate in value, you can have it paying you. A wise man
once said to “buy assets for cash flow, and that ownership and infrastructure
are the keys to wealth” – Jeremiah Brown
For example, a stock that pays a dividend, or a rental property where your
tenants pay you rent every month. Your job may not give you a raise, but
you can give yourself a raise by doing this. Imagine having a rental
property generating $40,000 gross a year, you just gave yourself a $40,000
raise, something your boss will never consider. The fun part about this is
that you can keep buying cash flowing assets to keep giving yourself a raise
in income. When I get more money from trading, commissions at work,
money from business activities I take that money and buy stocks that will
pay me dividends or buy more real estate that will pay me monthly, invest
in bonds that pay interest, or even buy a business that I won’t work at that
will pay me (these sources of income are also known as passive income). A
Laundromat is a good example of a business you can buy with minimal
upkeep that is essential and people will use most likely forever. Passive
income builds a buffer between you and the world, there are more important
things in the world than money, it is easier to focus on them when you’re
financially free. When your passive income exceeds your living expenses
you can quit your day job and you will be free out of the rat race. This is
why the name of the game is get money and buy income aka increase your
passive income. You can’t pass down your salary at your job (that is leased
from the business you work for), but you can pass down your assets that
require minimal to no work to your family.
LeBron James can’t play basketball forever to support his family, but he
will pass down many assets to them. An academic education lands you into
a 9-5 job, which is fine but if you get a great financial education you can get
out of it. And no this is not to knock a 9-5, but ask yourself “Is this what I
would really want to be doing for a living if money did not exist?” Many
people I know hate their jobs, the 40-hour work week really is a myth, they
own you in my opinion. Think about it, you wake up early to go into work,
and then after you sit in traffic annoyed and potentially have to run errands,
even if you don’t have errands, chances are you are too tired to want to do
anything. Then your weekends are spent tired from the week and trying to
do anything to forget about the week and before you know it Monday is
back. You think they took just 40 hours, but they actually took 40 of your
most energetic hours. They take everything, so why not be doing something
you enjoy. I’m sure many people want to do a job they like, but financial
reasons pushed them into something they don’t like or maybe what they
want to do with their time doesn’t even involve a job. The key is financial
freedom to do what you want on your own time. At least for me the goal
wasn’t to stop working, the goal was to get paid for doing what I want to be
doing.
I love adding value to people’s lives, and that is the reason I started True
Mastermind. I really saw a great need for people to learn what I have
learned to change their own lives. I watched my mother struggle growing
up, but if she knew what I know now back then things would be different.
Complex strategies are only good for teaching purposes; money is made
with simple strategies and combined with the most underrated qualities you
need in investing which are discipline and patience. “You wouldn’t plant a
seed and then dig it up every few minutes or every day to see if it has
grown.” ~ Unknown. The same principle is true for the stock market as
well. One of my tenants paid me rent the other day and I took her money
and bought stocks that pay me dividends. It is a cycle that makes sure I end
up wealthier day after day, month after month, and year after year. Cash
flowing assets buy me cash flowing assets that buy me more cash flowing
assets that essentially buy my freedom and time, while I also wait for them
to appreciate in value. Abundance creates more abundance.
Lifestyle to wealth
Something that is also important is to live below your means temporarily to
save more money and let your assets pay for your liabilities. This is
something that I learned from my grandfather Thomas Parks, once we were
finally reconnected right before I left for college. After college, I networked
with Jeremiah Brown, an inspirational financial guru after I had read his
books. I was inspired to write my own book one day and give my gems I
learned from my experiences, and here I am. Don’t go broke buying
material things that will only bring you temporary happiness, “go broke”
investing into assets that will bring you and your family long term security
and happiness.
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CHAPTER 4
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Backdoor Chromosome Strategy
What’s the Backdoor Chromosome Strategy?
A great leader teaches you how to think, not what to think. I was taught hard work pays off and just to work hard,
but this thinking changed when I read the book Animal Farm by George Orwell. I learned about the horse, Boxer
who worked hard (workhorse no pun intended). Boxer represented the people in the rat race that believe by just
working harder that they will make it out. He worked himself to death literally and never made it out of the rat
race. A poor mentality tries to work their way through financial hardships, but a rich mentality thinks their way to
financial freedom…Take a second and just let that sink in. They say that knowledge is power, and it is to an extent,
knowledge is potential power, but then you need to take the action of thinking and then acting upon that power.
You have to turn that potential power of knowledge into kinetic energy of action.
This section is about my most valuable strategy I came up with through my own personal experiences and
education. To my knowledge this strategy does not exist on the market and I have not read a single book nor article
talking about this particular strategy. It has made me a better investor in the stock market, and it has made me a lot
of money over the years. It has also helped many of my students make money residually. I believe that this strategy
will change your life. If you’re a beginner this strategy gives you a competitive advantage and if you’re an
advanced investor it just makes you that much more efficient at making money from the stock market.
Warren Buffet is by far the best-known investor of our time. He is also among the top ten richest people in the
whole world. He made his whole fortune through investing in the stock market and then buying tangible assets
such as businesses. Growing up and exploring the stock market, I was always fascinated by Warren Buffet and
how he became to be this financial guru of our time. Warren Buffet talked about how thousands of people got rich
off investing in IBM in the early 90s, back when IBM was the Amazon of their time. The stock increased over
1,300% after people realized the true value of computers. IBM really was the only option for some time that was
adopted by the masses. Everyday people poured money into the IBM stock, which caused the stock price to
skyrocket. Once the price skyrocketed it created a barrier of entry for people who were late to the party. Now here
is the juice or tea if you will, there were a small group of investors who thought outside the box. They wanted a
piece of the pie, so these investors started to think a lot about how they could get their own piece of the pie. They
realized if they couldn’t invest in IBM computers themselves, they could invest in the components that made up
the IBM computers. It just so happened that Intel’s chips were powering every single IBM computer. These
investors had found what I coined as the “Backdoor Chromosome Strategy.” They found a way to invest in IBM’s
success without directly investing in IBM. This was their cheaper way to reap the gains without having to risk so
much of their hard-earned money. A back-door chromosome strategy provides you with access to all the
components that make up a successful company. The idea is to find and invest in those components when they’re
still undervalued.
BCS: Backdoor vs. front door analogy
“A door or doorway symbolizes the transition and passageway from one place to another.” “A backdoor in an
operating system provides access to all systems functions in the computer.” If you ever lived in a house that had a
front door and backdoor, you can attest to the fact that the front door is always over utilized, and the backdoor is
underutilized. Majority of people use their front door to get in and out of their homes, very rarely do they use the
backdoor, most cases the backdoor is even blocked off.
Now let’s apply this front door vs. backdoor strategy to the financial world specifically to the stock market. I
coined the term “Backdoor Chromosome Strategy” in relation to the market to symbolize what I just illustrated
with the use of the front door vs. the backdoor. A chromosome if you recall back in biology means a piece of DNA
that carries genetic information in the forms of genes. Basically, in layman’s terms chromosomes are things that
make organisms what they are. They carry all the information needed to assist with cell growth, thriving, and
reproduction. As you can see a chromosome is very critical and plays a major role in the DNA and gene sequence.
Now applying that analogy to the market, a Backdoor Chromosome Strategy is a strategy that enables you as the
investor with components that allow you to grow, thrive and multiply cash. As a mastermind investor, you have a
competitive advantage over other investors knowing the Backdoor Chromosome Strategy. Learning this strategy
gives you a different perspective to look at the market. As cliché as it sounds “not all that glitters is gold,” knowing
the BCS method allows you to look at the market deeply and critically, silencing out all the noise and allowing you
to have an educated judgment of all the components or building blocks that make up most of the successful stocks
(businesses) on the market. It is important to note with this method however the treasure is in identifying early and
investing in those components (that are publicly traded companies) driving that business to its success.
Most recent example of a Backdoor Chromosome Strategy is the COVID-19 rush to make the vaccines available to
the masses. On 11/9/2020 Pfizer a pharmaceutical company was the first to announce that its vaccine was 90%
effective. In Pfizer’s report they stated that they would need to refrigerate the millions of vaccines they were
bringing to the market. As a mastermind investor knowing the Back Chromosome Strategy, following Pfizer’s
announcement, you would be looking at companies like Thermo Fisher Scientific (TMO). Covid-19 vaccines
needed to be stored and transported at negative 94 degrees Fahrenheit. TMO manufactures high-performance
refrigerators and freezers designed for temperature-sensitive material such as vaccines. This is a perfect example
of how this strategy allows you to have an edge on the market. While every investor is losing money trying to
chase the Pfizer stock; you the mastermind investor that you have become, would be taking the road less traveled
and using the backdoor to your success.
Another example, Tesla and Nvidia have so much in common, an advanced trader might know what I’m talking
about. Don’t worry if you are a beginner, just let me explain.
Tesla vs. Nvidia example in 2014
I figured this out while being in college doing my own research, because classes don’t teach you how to become
financially free. School prepares you to be an employee working off wages for life. I thought to myself what were
some success stocks and industries that were public companies and had public company suppliers listed on the
stock market. After digging, I came across Tesla’s stock growth and what they wanted to become as a company.
Tesla is an innovative electric vehicle manufacturing company. I found out that a gaming chip company called
Nvidia was powering all Tesla’s cars at the time. Nvidia is a semiconductor company that makes gaming chips;
however, Tesla uses their hardware in some data centers for image processing in their vehicles.
At the time of my discovery, Nvidia was trading at $15 a share and I did some analysis with my value investing
strategy and discovered it was undervalued. I did further investigation/research and realized Nvidia controlled
most of the computer gaming market. They were doubling down on artificial intelligence more than anyone else in
their sector. I also realized with their chips being in every Tesla, and with both of them having such a strong
ambition into self-driving cars, I had found my Backdoor Chromosome Strategy. I bought shares at $17 per share
in 2014 and it slowly kept increasing and paying dividends while the price increased. Once Nvidia ticker (NVDA)
hit $30, I started to tell all of my friends about it. Only 1 listened and he helped me write this book!!!
And as the months went on it kept increasing, by the time it hit $100 a share my friends were mad and tried to say
that I did not tell them about the stock. Then I told them to still buy there, because I still saw more room for
growth. Time went on and Nvidia got to $217 and I sold some to secure $200 profit per share (my long-term price
target I had calculated). Then I held the rest and Nvidia hit $292.76, I sold most at $280 per share in 2018. I made
my biggest payday with this stock from utilizing this BCS method. Today at the writing of this book in 2020 the
stock price of Nvidia was over $589 per share that is $572 profit per share.
Now to break that down if you were one of my friends and listened to me at $17 and bought 100 shares $17 x 100
= $1,700. And you held on to these shares while collecting income through dividends the shares alone (not
including the dividend income) would be worth over $58,900 in a period of just 6 years. If this doesn’t grab your
attention, then I don’t know what will. What did your savings account do over this timeframe? Even 50 shares
would have cost you only $850 and would be worth over $29,450. I have personally used this way of thinking with
plenty of other stocks. I have coined this strategy the “Backdoor Chromosome Strategy.” A strategy that teaches
you how to think, not what to think. Practicing this strategy allows you to get a piece of the profits without risking
so much on a hyped-up stock with a price per share that’s already inflated (there is gold in these chromosomes).
And if you think this is a one hit wonder, I have discovered many plays like this over the years.
Apple vs. Taiwan Semiconductor
Apple is the technology company that makes innovative products and services such as iPhones, iPods, smart watch
- Apple watch, iPads, computers, apple pay, television & movie streaming through Apple +, music distribution via
Apple Music and many others. Taiwan Semiconductor, though not as popular as Apple, but makes computing
chips like Nvidia.
In 2014, I was buying more shares of Apple for my daughter Ava Washington’s future with my life savings at the
time (like Nvidia, that is how much I believed in their continued success), I realized that they were working with
Taiwan Semiconductor which had a cheap stock price while Apple was getting expensive. I again applied the
Backdoor Chromosome Strategy with my decision making in this investment. I bought Taiwan Semiconductor
shares while they were still undervalued.
While I waited for Apple to continue its growth, I continued to buy more Taiwan Semiconductor shares. In this
example, Taiwan Semiconductor was more appropriate for my college student budget and I knew they would grow
along with Apple. Taiwan Semiconductor exclusively makes Apple’s processors. So basically, as long as apple
continues its success, I will continue to simultaneously benefit from both companies. I have many more examples,
but the goal is to teach you how to think not what to think. This Backdoor Chromosome Strategy can build you
wealth just by thinking right. Think of any type of successful publicly traded business and see if they rely on a
product or service from another public company that may have a cheaper share value. And there is a difference
between share price and share value (this is why tying value investing with the Backdoor Chromosome Strategy is
key).
Side by Side examples of Backdoor Chromosome Strategy at work
Tesla
Nvidia
Sony
Advanced Micro Devices
Arrival
UPS
Pfizer
Thermo Fisher
Electric vehicles (though not a stock, but great example) Companies that make the lithium batteries that make them
The above five blank boxes were intentionally left blank for you to put the backdoor chromosome strategy at work.
Think of 5 companies with their partners that fit this strategy. Then add them on your stock watchlist to see how
they affect each other in the stock market from day to day. You will probably find that if one reports news, it also
affects the other’s stock price.
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CHAPTER 5
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Fundamental Analysis
As a mastermind investor, you should always start with the fundamentals so
you’re investing in something that has value. It’s okay to trade a company
when a stock is way overvalued, but it’s not okay to invest in a stock when
it is way overvalued. Traders trade on volatility but as an investor, that’s not
a good strategy. You want to invest in fundamentally good businesses.
Investing is for the long term; trading is a skill and it’s more of a short-term
strategy. Warren Buffett once said, “you should only invest in a stock if you
would not mind owning it if the stock market closed down for 10 years”.
The common real estate phrase “you make your money when you buy, not
when you sell” can also apply to buying stocks. This means that your
purchase price is the main factor that determines your profit later on when
you sell. I will mention the first step of how I personally begin fundamental
analysis. First, I start by researching important qualitative data about a
company, which just means qualities of it not having to do with the
numbers. If you want to learn how I personally determine if a stock is
undervalued or overvalued with quantitative data (using the numbers from a
company’s financials) inquire on truemastermind.com. Understanding the
numbers behind a company’s financials is key, because what I love to say is
so true: Men lie, women lie, but numbers don’t lie.
When I first start out to do fundamental analysis on a company that I like, I
start out with what in business is called a S.W.O.T Analysis. S.W.O.T
stands for strengths as in the characteristics of a company which give it
competitive advantages over its competitors, weaknesses as in the
characteristics which make it disadvantageous relative to competitors,
opportunities as in elements in a company’s external environment that allow
it to formulate and implement strategies to increase profitability, and threats
as in elements in the external environment that could endanger the integrity
and profitability of a business.
Let’s do a S.W.O.T analysis for a company called Zoom video
communications inc. stock ticker (ZM):
Strengths - 1. Zoom has a mission to make video communications
“frictionless”. Easy to use without having to make an account or
requiring any special software. 2. Zoom made the Top 50 fastest
growing companies; with continued social distancing practices, the
customer base continues to grow exponentially. 3. Engages customers
with a “wow” factor. It increased its customer satisfaction by
implementing virtual backgrounds to make meetings fun and
comfortable. Zoom has been suggested as a form of “visiting” family
during holidays which drives up user traffic.
Weaknesses - 1. Zoom does not support end-to-end encryptions, which
leads to privacy concerns and being banned by certain companies such
as Google and NASA. 2. Zoom’s integrated conference room solution
has a management system that needs to be updated in order to support
third-party peripheral updates. 3. Zoom is capitalizing on its strong
brand value and negotiating higher pricing than in the past. 4. Zoom
has been missing on plenty of revenue by offering their services for free
to the public.
Opportunities - 1. Zoom is expanding its ZOOM Phone service into 11
European countries and adding additional multilingual prompts, all
making its services available to a broader audience globally. 2. As the
users become more familiar with the platform, it becomes easy to
expand within an organization, eventually creating opportunities for
upselling. 3. Zoom has been adding servers and improved equipment
inside the company’s data centers in addition to increasing its cloud
infrastructure capacity. This is to take care of the increased traffic it is
experiencing.
Threats - 1. If Zoom does not fix its security issues, they will lose to
their competition Cisco, Skype and Microsoft Teams. 2. The reopening
of the economy will lead to a sharp decline in users as well as news of a
vaccine, which has recently sent shares tumbling. 3. Investors are left
wondering what will be the use of Zoom products after society goes
back to normal, this is why when positive vaccine news is released,
stay-at-home stocks like zoom drops. 4. The competitive market might
require the company to put more investment on research &
development to give their customers better service.
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CHAPTER 6
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Technical analysis crash course
*****You make money when you buy not when you
sell*****Unknown
Disclaimer: This section is for traders who are interested in advanced
trading techniques. Also be aware that previous results do not guarantee
future results. The key for this section is to use this as a guideline
manual, something you can always reference whenever you need it.
When is it a good time to buy?
“Buy when blood runs in the streets and sell when everyone is
comfortable” ~ Baron Rothschild
He meant when there is a lot of turmoil in the markets, when the overall
market is fearful and panic selling. Another meaning to what he is saying is
that it is typically best to buy stocks on red days, when you see a bunch of
red, buy stocks from strong companies where the fundamentals of the
business did not change. To put it simply, it’s like buying your Christmas
gifts on Black Friday when there are a bunch of discounts, but the quality of
the product you are buying did not change, you are just getting a discount.
What is technical analysis?
Technical analysis is a trading strategy employed by investors to identify
trading opportunities, price trends and patterns seen on statistical data
provided on charts over a certain timeframe (one day, 5-day, 180 day, 10
years, etc.)
Like the old saying goes, “history always repeats itself.” Technical traders
believe past trading activity and price changes of a security can be valuable
indicators of the security’s future price movements. This information is then
used in making investment decisions.
Technical analysis may be contrasted with fundamental analysis, which
focuses on a company’s financials and core values of the business rather than
historical price patterns or statistical stock trends shown on the charts.
Support vs. Resistance
Support is just a psychological price point where the stock normally
bounces at, it doesn’t mean that the stock will always bounce there.
“Support refers to the price level that an asset does not fall below for a
period of time” (Investopedia, 2020).
Resistance is a psychological price point where technical traders identify
as a good price point to sell. “Resistance is the price at which the price
of an asset meets pressure on its way up by the emergence of a growing
number of sellers who wish to sell at that price point. Resistance levels
can be short-lived if new information comes to light that changes the
overall market’s attitude toward the asset, or they can be long lasting”
(Investopedia, 2020).
The image above is an original, I designed it to show you an example of
support and resistance.
Support and resistance & trend lines
It is very important to remember as a technical trader that “Old support
levels, become new resistance levels”!!!
Image above is an original image from my trading platform
In this real-time chart of Tesla taken from “ThinkorSwim’’ part of TD
Ameritrade, you’re able to see outlined support and resistance levels. Look
closely, how history tends to repeat itself. Also notice how the price action
tends to respect the support and resistance levels with the changes in trends
(pushing up to resistance and then pulling back down to support).
What technical indicators can I use to identify good entry and exit
points?
My favorite technical indicators include but are not limited to; volume,
support, resistance, 180-day EMA, SMA, MACD and RSI. At Least three of
these indicators have to be in agreement for me to have confirmation and
validation for change of trend up or down.
Disclaimer: Please note that there are many technical indicators that
investors use to determine the change in direction of the stock, the
indicators mentioned in this book are the ones that I have had most
success with.
MACD
Moving Average Convergence Divergence
MACD helps you understand whether the bullish or bearish movements in
the price action is strengthening or weakening.
Indicates when to buy and when to sell
Relative Strength index (RSI)
Indicates if price is overbought or oversold, tells you when it is a good time
to buy or sell.
Please note that overbought doesn’t necessarily mean the price will reverse
lower, just like oversold doesn’t mean the price will reverse higher. It is,
however, an indicator alerting you that the RSI is at its extremes.
SMA-180
Simple Moving Average
A simple moving average is a technical indicator that can be used to
determine if an asset price will continue or if it will reverse a bull or bear
trend.
Use it as a verification for uptrends when the EMA crosses the SMA good
confirmation for uptrend. It also acts as support and resistance. It’s Best used
for swing trades.
EMA
Exponential Moving Average
The EMA is a moving average that places a greater weight and significance
on the most recent data points.
Tends to move quicker than the SMA, it’s best used for intra-day trades.
Validation for uptrend pattern: Push up, pull back confirmation on the EMA.
Always wait for 2 candlesticks to be trending above the EMA for
confirmation of reversal.
EMA a mountain formation indicates down-trend, cup formation indicates
uptrend
There’s a saying in the trading world “M on the chart is for murder =
downtrend, W on the chart is for winners = uptrend”
Candlesticks
Candlestick charts demonstrate the high, low, open, and closing prices of a
security for a specific timeframe.
Candlesticks originated from Japanese rice merchants and traders to track
market prices and daily momentum hundreds of years ago.
Candlesticks can be used by swing traders looking for chart patterns to
capitalize and take advantage of price changes.
The image I designed above is to give an example of a bullish candlestick
and a bearish candlestick.
The most common and reliable candlesticks that are used by most technical
analysis investors/traders for reading the chart and identifying the change of
direction trending up are (Morning Doji Star, Morning Star, Piercing Line,
Bullish Engulfing, and Hammer candlesticks). For the change of direction
trending down. The most common and reliable candlesticks that are used by
most technical analysis investors/traders for reading the chart and identifying
the change of direction trending down are (Evening Doji Star, Evening Star,
Dark Cloud, Bearish Engulfing, and Shooting Star candlesticks). See the
image below for reference.
Another way to identify change of direction on the charts is by using
breakout patterns. The most common and reliable breakout patterns that are
used by most technical analysis investors/traders for reading the chart and
identifying the change of direction trending up are (Cup & Handle, Head &
Shoulders, Double Bottom, and Triple Bottom). The most common and
reliable breakout patterns that are used by most technical analysis
investors/traders for reading the chart and identifying the change of direction
trending down are (Inverted C&H, Inverted H&S, Inverted Double Top, and
Inverted Triple Bottom).
Use Best Practices
Use this layout for identifying when is a good time to buy, sell, cut losses
and lack in profit
TICKER SYMBOL:
SUPPORT LEVEL:
RESISTANCE LEVEL:
DESIRED ENTRY:
SELL POINT:
STOP LOSS:
WHY IT HAS POTENTIAL:
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CHAPTER 7
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True Mastermind 10 trading commandments
“One good trade a day keeps poverty away.”
Don’t trade based on other people’s opinions, always trade your plan and
based on your own research.
Don’t double dip (re-buying the same stock on the same day), control your
psych. Lock in your profits and walk away.
Use best practices, plan every trade: know when to buy, sell & cut losses
before taking any position.
Don’t chase, don’t force trades, there’s always tomorrow
Don’t bag hold, know when to cut your losses. Risk management is key to
becoming a successful trader. Holding a losing trade only makes you lose
more money.
Buy the rumor and sell the (euphoria) fact/news.
Respect your weekly price target or percentage gain target.
Don’t trade with emotions, let the numbers do the talking.
Don’t average down, average up after technical and fundamental
analysis/confirmation.
Don’t be greedy, again always lock in your profits. It’s not real, until you
make sale.
True Mastermind 10 investing commandments
“The stock market is a device for transferring money from the
impatient to the patient.” ~ Warren Buffet
Always invest your plan based on research (Fundamental analysis/technical
analysis) | S.W.O.T analysis of the business.
Automate your investments → pay yourself first, set a certain amount to
automatically go from your paycheck into your investment account.
Invest early→ time is your friend when it comes to investing. Let it
compound over time.
Diversify your portfolio (stocks, ETFs, indices, bonds, mutual funds, etc.)
→ Recommended book to read on diversification is “Money Master the
Game,” by Tony Robbins. The book explores Ray Dalio’s “All Weather
Portfolio.”
Focus on quality not quantity → read up on your investments and analyze
them to ensure their quality.
Practice good position sizing (80/20 rule) → 80% of your portfolio should
be stable conservative securities and 20% of your portfolio should provide
opportunity for growth.
Practice infinite returns→ when your investment matures, take out your
initial investment and let the profits rise.
Have a schedule for reviewing and rebalancing your portfolio quarterly
(every 3 months).
Risk management is key to becoming a successful investor→ buy insurance
for your large position sizes.
Invest periodically→ It’s impossible to consistently hit the highs and the
lows in the stock market.
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CHAPTER 8
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Golden tips for success
Have a specific trading/investing criteria
Be consistent and stick to your plan
Create a watchlist (active watchlist, general watchlist, options watchlist,
ETF watchlist etc.)
Have a specific weekly goal or target you want to achieve
Be patient
Only take advantage of opportunities you see value in.
Diversify your portfolio
Be a life-time student
Keep a trading journal
Always* use Buy orders (Buy/sell limit, stop loss, stop limit)
Always have a predetermined price target selected where you will exit the
trade when (if) it doesn’t move in your favor.
Never enter more than 20% of your total money in your account into any
individual stock
Only trade or invest with money that you are willing to lose!!!
Success vs. Failure
If so many rich people keep their money in the stock market, why
don’t poor people do the same? – Dr. Kennedy Ndamba
Many people don’t invest in the stock market because they are afraid of
failing, they are afraid they will lose ALL their hard-earned money.
Ironically, they’re failing already by not investing in the market. The money
you save in the bank is taken by that banker and invested in the stock
market while you’re losing to inflation.
The easiest way to avoid failure is to not learn by your experiences but to
learn from other people’s experiences. You should not let failure stop you
from pursuing your goals and dreams. Failure is the greatest teacher, what
you need to realize however is that you need to fail fast and learn from your
failures. Ultimately, it’s not really failure, it is a life lesson, use it to grow
and become more, use it to get you to your nirvana. No one in the history of
this world has succeeded without being tested by failure. It is those people
who have overcome failure time and time again, that are the GOATs and
legends we all aspire to become. We happily follow those GOATs and
legends on social media hoping that one day our time will come. Some even
hope one day they will get lucky and end up in their shoes. The true hunters
just hope that their GOATs stay alive long enough so that one day they
become their prey. Failure isn’t your enemy; make failure your friend
because any good friend will always teach you a thing or two. On the other
side of failure is success. Failure is not the end all be all, it’s just a hiccup or
speed bump on your way to success. Stay on course, keep going forward
each day, your paradise awaits you. As cliche as it sounds, if you fail, try
and try again. You didn’t fail; you just used an approach that didn’t work. If
you fail, try again with a different approach this time until you get what
you’re looking for.
Another principle to being successful is by modeling those who have been
successful. You have to study them and analyze their every move. “Success
leaves clues,” - Tony Robbins. And if you look closely enough, you will
uncover those secrets to their success, which will be your recipe to success.
Don’t just copy, but model until you’re confident enough to do it on your
own.
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CHAPTER 9
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Insurance & Investor’s apps
How to insure your investments in the stock market?
“Life isn’t about waiting for the storm to pass; it’s about learning to dance in the rain.”~Vivian
Greene
Oftentimes as an investor, you may worry about losing your hard-earned money. This is a fear most investors and
traders have. A fear that keeps many people from investing in the stock market. You may ask, is there a way to buy
insurance to protect against losses from the stock market? The short answer to your question is “YES.” However,
buying insurance for your stock portfolio isn’t as easy as getting car or home insurance. Buying insurance for the
stock market is an advanced technique that allows you to insure or hedge against losses. One way to hedge against
losses is by diversifying your portfolio. When you diversify your portfolio, you reduce your risk of loss. Investing
in indices such as the S & P 500, which tracks many stocks is an effective strategy to insure against individual
stock or ETF investment. Yes, you can buy and sell an index just like you can buy and sell a stock. Other assets for
diversification include commodities, currencies, bonds and funds. According to Investopedia, a commodity “is a
basic good used in commerce that is interchangeable with other goods of the same type.” A common example
would be gold, silver, natural gas, etc.
Another way to insure against losses is by using options. An option is a contract that gives both the buyer and the
seller a right to buy or sell a stock at an agreed upon price (strike price) within a predetermined (expiration) date.
Options have an expiration date unlike stocks, which you can hold forever. There are two forms of options (1) call
option and (2) put option. Think of the call option as what you do when you receive a phone call, which is you
pick it up. When you buy a call option, which controls 100 shares of a stock you’re expecting the stock to go up. A
put option is the opposite; you’re expecting the stock to go down. There’s way more to options than this simplified
version I am giving you. Buying stock options for individual stocks is a valuable and strategic way to protect
against risk-related losses associated volatility in the market.
If I had invested in 200 shares of apple for long-term, I could buy a put option for a few months or a year
depending on what’s available, that way if my shares of apple were to start losing value, the losses would be
mitigated because the put option would gain value and they would cancel each other out ***Please be advised that
options are very risky and volatile, and you shouldn’t mess with them without having enough knowledge. They do
however provide you with an opportunity to insure your portfolio against losses. Other types of options include
ETF options, index options and VIX options. Reach out through truemastermind.com if you’re interested in
learning about advanced techniques for trading options.
What apps should I have as an investor?
Name
Benefit
ThinkorSwim
Allows you to live trade or even paper trade using real market data without risking your own mon
TD Ameritrade
Monitor the markets and your positions at a glance, deposit funds, catch up on latest news, resear
Robinhood
Allows you to buy and sell stocks, options, cryptocurrencies commission-free. Robinhood simplif
Acorns
Helps you grow your money. It invests your spare change from everyday purchases “Round-Ups,
E-trade
Allows you to trade, invest, bank, research and more. You can invest in stocks, ETFs, options and
Yahoo Finance
Gives you real-time quotes and personalized news. You can track currencies, bonds, commodities
StockTwits
This is like Twitter but for the stock market. Gives you access to professional analysis, market sen
Coinbase
If you were wondering where can I invest in cryptocurrency? This is it. Coinbase gives you acces
Stash
Stash is designed to allow you to build financial freedom. It gives you options with fractional sha
Personal Capital You can monitor all your investments, retirement, and finances in one place. You can see all your
SigFig
It gives you access to licensed advisors at low costs for your wealth management. It is designed t
Investing.com
It’s a one-stop-shop. Offers a set of financial tools covering a wide variety of global and local fina
M1 Finance
Provides intelligent financial tools. You can invest, borrow, and spend seamlessly. You can borrow
MyMerrill
A bank of America company. Gives up to $600 promotion with qualifying deposit. Gives you acc
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CHAPTER 10
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Resources: Brokerage List
1. TD Ameritrade
TD Ameritrade Think or Swim (TOS) platform is a powerful and
interactive brokerage that is free to use with free commission trading
Paper Trading:https://tinyurl.com/y8hy6p7v
TD Ameritrade TOS:https://tinyurl.com/k8sq7e9
TD Ameritrade: 800-454-9272
Advantages
Superb desktop trading platform
Provides real time quotes
Great customer support and reliability
Commission free trading
Compatible app “Thinkorswim” on both IOS & ANDROID
Advanced Brokerage
Great for technical analysis - Think or Swim (TOS)
Great place for news and research - TOS
Can set alerts
Disadvantages
Can only trade on US markets
Accounts mostly limited to US residents
No credit/debit cards and electronic wallets for money transfer
Enforces PDT RULE
2. Robinhood mobile & website trading platforms:
https://tinyurl.com/y98b2jwm
Robinhood: 650-940-2700
Advantages
No Commissions
Simple brokerage and very easy to use interface
Robinhood Gold & extended hours trading, larger instant deposits with
Robinhood gold (beware of using margin).
Simple Brokerage
Solid education experience
Disadvantages
No alerts
Delayed quotes & many many glitches
Service issues
Very weak customer support, can only communicate with them through
email
Enforces PDT RULE
3. Fidelity in0estments
Website: https://www.fidelity.com/open-account/all-accounts
Fidelity: 800-343-3548
Advantages
Great brokerage with interactive platform (Active Trader Pro)
$0 commission trades
$0 commission options
Compatible app
Great customer support and reliability
Advanced brokerage
US and international stocks
Disadvantages
High mutual fund fees
High financing rates
Enforces PDT RULE
4. Charles Schwab
Website: https://tinyurl.com/yc7d6nnj
Phone Number: 800-435-4000
Advantages
Great brokerage with interactive platform
Provide extensive research
Compatible App
Great customer support and reliability
Low fees
Great overall experience for beginners and advanced traders
Advanced brokerage
Disadvantages
Not well-structured education platform
Brokerages outside the U.S.
(NO PDT RULE)
5. Ustocktrade
Website: https://www.ustocktrade.com/
Phone number: 617-762-5431
Advantages
No account minimum
Unlimited day trades
Fair brokerage with interactive platform
Commission varies
Decent customer support and reliability
Disadvantages
Not very regulated
***Please note there are many online brokerages available, but listed above
are among the most innovative, powerful, popular and interactive platforms.
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CHAPTER 11
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Take Home Message
Try to stay away from investing in companies you know nothing about, take
the time to learn how a company operates and add the ticker symbol to your
watchlist on whatever platform you’re trading on. Act like a real business
owner because when you buy shares in a company, you own a small piece
of that business. Just because your friend says it’s a good stock, doesn’t
mean you should throw all your hard-earned money in it unless you have
done your own due diligence with technical analysis, fundamental analysis
and extensive research. Remember to utilize the Backdoor Chromosome
Strategy when you begin investing. Congratulations you have graduated
from True Mastermind University. Head over to truemastermind.com for
more information on investing, trading, financial education, etc.
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CHAPTER 12
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Bonus Section
Emerging Industries
Big data
Robotics
3D printing
Cannabis
E-learning
E-sports
Blockchain
Electric vehicles
Fintech
Covid-19 stocks
Solar stocks (new green deal)
Real Estate (REITs)
Big pharma (Quest Diagnostics)
Artificial intelligence
Internet of things
ETFs
Indices
Below are some examples of stocks that provide stability, conservative
growth and potential for exponential growth. Some of these stocks are blue
chip stocks and others are penny stocks but with great potential because
their core business is to build a better future.
Apple
Facebook
Tesla
Berkshire Hathaway B
Netflix
Walmart
Nvidia
Visa
Workhorse
Goldman Sachs
DocuSign
American express
HubSpot
Moderna
NIO
Pfizer
FICO
Moody’s
PayPal
Quest Diagnostics
Vertex Pharmaceuticals
Carvana
Johnson & Johnson
JPMorgan Chase
United Health Care
Alteryx → Data analytics software, industry leader
Beyond meat
C3.AI→ artificial intelligence and internet of things “the future”
Ideanomics
FinTech
Peloton interactive
Eos Energy
QuantumScape
Palantir technologies
Livent
Marathon Patent
Salesforce.com
Fiverr international
Tencent
Shopify
Microsoft
Gold
Zoom
Amazon
Thermo Fisher
Lyft
Bank of America
Airbus
AMD
Mastercard
Nike
Comcast
Disneyland
Home depot
Chipotle
Square
Airbnb
DoorDash
T-Mobile
Regeneron Pharmaceuticals
Marriott
Waitr
Uber
Procter & Gamble
REIT (Real Estate investment trust)
QTS realty Trust
Equinix
Digital realty trust
American tower corp
Prologis
Public storage (PSA)
ETFs
DRIV
OCLN
ARRK
GDX
POTx
IHF
Electric vehicle stocks (GROWING INDUSTRY)
Kandi technologies
SOLO
Nikola
Tesla
NIO
Xpeng
Li Auto inc
Fisker
Ayro
Blink
BYD company
Volvo
BMW
Magna
Workhorse
Chinese sector→ taking diversification internationally
BAIDU (BIDU)
ALIBABA (BABA)
JD.COM (JD)
TENCENT HOLDINGS (TCEHY)
NIO (NIO)
Xpeng (XPEV)
LI Auto inc (LI)
Artificial Intelligence (GROWING INDUSTRY)
IBM (IBM)
Baidu (BIDU)
YEXT (YEXT)
NVIDIA (NVDA)
AMAZON (AMZN)
MARIJUANA (GROWING INDUSTRY)
AURORA (ACD)
CANOPY (CGC)
TILRAY (TLRY)
GW.PH (GWPH)
APHRIA (APHA)
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About the Authors
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Thomas Washington Jr. Bio
Thomas Washington Jr. (TJ) is a Boston Native who grew up in a large part
of the city called Jamaica Plain. The young CEO spent his early years
watching many of the people in the area struggle due to the high poverty and
crime rates. Rather than following similar paths as the locals and peers,
Washington used his experiences as motivation to help change the
circumstances in his neighborhood. He had always played mock investment
games with his mentor, Dr. Joseph Warren, a Northeastern professor, which
inspired him to learn more about economics. As Washington entered his
adult years and gained more knowledge on these topics, he recognized a
large part of the problem in his community was the lack of resources for
learning to become financially literate.
Washington attended a small private school known as Merrimack college
where he finished with honors; He graduated with a Bachelor of science in
business administration. As an undergraduate, he spent his weeks working as
a Bank Teller at TD Bank, where he achieved the top sales in credit cards in
the entire region for TD Banks, pacing at 2,000%. In 2015, Washington took
a position at Putnam investments as an investor service representative,
providing information about their company’s mutual fund products to
individual investors, broker/dealers, and financial advisors; During his time
there, he gained experience dealing with Traditional IRAs, Roth IRAs, 529
Plans, individual non-retirement investment accounts and more.
First semester of senior year of college, Washington was selected to be a part
of an elite group that was handpicked from State Street Corp called its
Future Focus group. As a member of this group, he worked as a high-level
functional specialist. Following the completion of his degree, Washington
moved on to gain experience in corporate finance at State Street Corp; there
he learned more key principles of investing, dealing with stocks and bonds,
mutual funds, ETFs, Swaps, Options and other derivatives.
With years of mastery in the finance and marketing fields, the young CEO
decided it was time to apply the knowledge he gained in a new area of focus.
Understanding the fundamentals of economics and personal finance and
recognizing the need for more fiscal instructions in communities similar to
his childhood one, Washington created True Mastermind in hopes to bridge
the wealth gap. By combining skills in sales, marketing, technology, over 14
years of investment experience, and financial education, True Mastermind
has helped over 200 people maintain a consistent income through
investments and trading since 2018 (most free of charge before officially
launching True Mastermind in 2020). He has courses on options trading,
value investing, credit building, technical analysis, and wrote a book on the
introduction to the stock market and secret strategies he came up with. His
ultimate goal is to help millions work towards financial freedom.
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Dr. Kennedy K Ndamba bio
In 2005, Dr. Kennedy Ndamba got an opportunity to come to the United
States of America with his family, thanks to the bravery of his single
mother of five who made this dream come true. It was a dream come true to
reach the land Dr. Ndamba once envisioned as his heaven on earth. Dr.
Ndamba was born in a small village in Uganda, Africa. He recalls his
experience “Growing up we were very poor, so poor that some nights I
went to sleep hungry. We survived off one meal a day. My earlier years of
schooling I had one uniform and for shoes, well I had none.” Ever since his
arrival to the United States of America, he has had one mission, which is to
reach financial freedom, retire his mom and live his “American Dream,” In
2014, Dr. Ndamba graduated from Merrimack College with two honorary
degrees: (1) Sports Medicine and (2) Public and Professional Writing. He
was the commencement speaker for his 2014 graduating class, where he
shared a stage with movie superstar Charlie Day. In 2017, he graduated
with a doctorate degree in physical therapy from Husson University. He
currently lives in Framingham, MA and happily practices as a home
physical therapist taking care of our veterans and elders, a career he loves
and enjoys very much. In 2019, he founded Keka Services, Inc an online
retail store focused on revolutionizing the medical equipment world. He
loves serving his community and teaching them ways they can bridge the
wealth gap. He believes financial freedom is possible if we equip ourselves
with the right knowledge and share our resources. Dr. Ndamba says, “They
can take away our resources, but they can never take away our intellectual
property.” He has co-founded youth non-profit organizations intended to
inspire and empower all youth to maximize their capabilities, community
investment groups to build generational wealth, and a community soccer
team to empower more youth through their talents. In his spare time, he
enjoys reading/writing, investing, playing soccer and fitness.
Disclaimer = This book is for educational purposes only. Investing of
any kind involves risk. Your investments are solely your responsibility
and we do not provide personalized investment advice. It is crucial that
you conduct your own research. We are merely sharing our experiences
and way of thinking that has led to our successes. There are no
guarantees of gains or losses on investments. Please consult your
financial or tax professional prior to making an investment. It is also
important to note that the educational information given in this book is
not intended for “get rich quick schemes”.
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