Richest forex traders, based on the number of shares you own, will pay you a percentage of your net worth that reflects the market value of your shares, plus whatever is left over after your purchase price. This is called the premium. If you own 50 shares at $9.00, for example, you will pay $9.00 per share, or $9.00 multiplied by 1.25, or $9.00 X 1.25 = $9.00 or $9.00. If you owned 100 shares at $9.00, for example, you will pay $9.00 x 1.25 = $9.00 or $9.00 x 2.25 = $9.00 or $9.00 x 3.25 = $9.00 or $9.00 x 4.25 = $9.00 or $9.00 x 5.25 = $9.00 or $9.00. You get the idea. There?s a lot of jargon, but it?s all you need to know.
Now, let?s say you currently have a net worth of $9,000.00 and you anticipate your stock will increase in value by $1,000.00 in the current month. If you purchased your stock Jan 1st for $9.00 you will receive $9.00 for every share you sold the same month prior. For example, if you purchased your stock Jan 1st for $9.00 you will receive $9.00 for every share you sold the month prior. This is for one month. Therefore, you will receive $9.00 for every share you sold the same month prior. Quite handy, huh?
Well, lets say your monthly average is $9.00 and you anticipate a total of $1,000.00 in net worth to be added to your existing account. How do you acquire this monthly income? Simple, by selling the stocks you purchased in the previous month. Alternatively, you can use margin, but that requires you to keep an eye out for important market fluctuations. You can always sell your margin months prior to the monthly average. Whatever it is, get the stocks you sold in the previous month.
And voila! You have acquired a second monthly income source. Three months is a long time to be on the receiving end, but if you know exactly what you are doing you will become blessed with hardly any expenses. A great aid if you would like to explore this avenue further. Moving on with the acquisition, you need to determine if there are any short term trends to report. If there are none, proceed with caution.
As with all purchases, there must be some serious thought given to the transaction. If there is, proceed with caution. There may be some troubling trends the buyer may not be able to avoid. For example, if you purchased a stock that recently opened, the stock recently had its volatility checked. This indicates a potential for significant price fluctuations. If this is the case, the purchaser may wish to explore other options.
Volatility is an indication of possible stock price reversals. If this is the case, a new appreciation may be required.