Compound Stock Earnings Cow Report August

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August Editorial For Compound Stock Earnings

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Due to Joseph's vacation, this week's editorial will be written by Randy Bassett. Randy teaches our 2-Day Intensive Seminar in both Chicago and Los Angeles and run the Covered Call Platinum Selections Service. He was a Compound Stock Earnings client for many years and retired as a result of what he learned from a senior management position at fortune 500 company.  As I began the CSE Covered Call Platinum Selections Service 2 months ago, I have learned even more what concepts are on the minds of many people.  First, a little about the CSE Covered Call Platinum Selections Service. My goal is to enhance the understanding of the CSE Covered Call techniques by showing the practical application as I manage my “Platinum Portfolio” real time with my own money. I use all the concepts and techniques taught in the 2-Day Intensive Seminar in addition to a few techniques that are not taught in seminars. One of them is a proprietary technique that I developed and is not taught by anyone else. It is called the RSC (Randy’s Synthetic Covered Call). The RSC combines elements of the Covered Call, SSR, LEAPS, and GGR processes. The RSC position leverages the capital to produce higher returns than the traditional Covered Call while using Blue Chip stocks and ETFs. Normally ETF and Blue Chip stock premiums are 2-3% per month due to lower volatility and risk. The RSC technique can generate returns in the 4 to 8% per month range with the same risk profile of a Covered Call. The RSC technique uses the management concepts and techniques of a Covered Call with specific modifications. The RSC can be applied to weekly, monthly and quarterly options on both stocks and ETFs.

I am very thankful that I learned the Compound Stock Earnings Covered Call investment techniques back in 2006. They not only allowed me to retire early in 2007, but also enjoy managing my own investments. They have allowed me to maintain a monthly cash flow whether the markets are going up or down. It is the management techniques that Joe and Aaron taught me during the 2-Day Intensive Seminar that are the key. While I do not enjoy a drop in the markets, I know that I can generate cash income each month without selling my stocks for a loss. I managed my portfolio through the 2008 / 2009 market drop while earning cash income each month to pay my bills. I actually made more money during that time then I made during the months Joe Hooper’s Weekly Editorial before due to the TSS technique. While I had friends that did not know the CSE techniques that were “pulling their money” out of the markets and locking in the losses by selling their stocks, I was not selling my stock. I applied the CSE management techniques to my portfolio to generate cash while not selling my stocks for a loss. As we know, the market dropped from about 12,500 to around 6,700 during that period due to economic turmoil and uncertainty. It eventually returned to the prior levels with the DOW recently hitting above 12,800 points. We are now in the mist of another market correction and I am not panicking because I know I can still generate cash each month by using the CSE Management Techniques on my portfolio, without selling my stocks for a loss - and that those stocks always go back up in value. The market simply goes up and down.  With the CSE Management techniques, we do not need to sell stocks for a loss, which locks in the
loss of money. We are able to keep the stocks while they cycle back and continue to generate cash profits using these Management techniques.

I have looked at the DOW futures tonight, as many of you have. They are down and how the market will finish is anyone’s guess. It will depend upon the panic and fear being experienced by some people.
I am not one of those people because I know how to use the Compound Stock Earnings Management techniques. I will continue to evaluate the charts of each of my positions to determine what technique is appropriate to use and when is the proper time to implement it. Sometimes, patience is the appropriate “technique”.  I will use TSS and JFC with my positions while this cycle continues. I will draw the cycles of each position’s chart and watch for the inverted V to enter into a TSS. If appropriate, and TSS is not right yet, I will implement a JFC to earn income in the short term.

The other question that arises in many minds, is what is the “value” of my portfolio? I hear people ask, “but haven’t you lost money in the down slide, your portfolio value must be down”. I simply answer with, ‘the value of my portfolio is based upon how much cash profit I can generate from the positions each month’. I do not look at the street’s concept of value when they say wealth has been lost in the market downturn. Wealth is lost only when stocks are sold for a loss. That is a self inflicted situation when someone actually decides to “take a loss”. Over time, the cash flow that you generate and compound grows the value of your portfolio. If you earn 4% per month, after just twelve months you have earned 48% of your investment back. So if your stocks are ALL down 50% after the first year (very unlikely), you will be at "break even" on a market value analysis. After two years, if you have earned 4% per month cash flow, you have generated 96% of you original investment in cash. If all your stocks are down 96% (so unlikely it's almost impossible), you will again be at break even. What is more likely is that stocks go up and down and the stocks you buy are are even - leaving you with huge returns. As each month goes by, you also have more cash, so you re-invest more capital and your income just grows and grows and grows. That is compounding. That is how $10,000 can turn into $3,500,000 in just ten years. Through generating cash and re-investing it. It has nothing to do with which way the stock market goes. I look at my portfolio much like a real estate investor looks at a rental house. How much “rent” can be generated from the asset each month? That investor does not sell their assets just because the “value” of the property has fallen according to the “market analysts”. No, they just keep pulling in the rent each month without considering how much they would receive by liquidating their assets in a down market. That is how I look at my stock portfolio, how much cash can I generate from the option premiums each month based on my positions? That is what I am interested in and that is how I “value” my portfolio. If I can generate a minimum of 3% cash each month based upon my original capital investment, then my portfolio is worth that 3% per month to me. The portfolio grows if I generate cash within it each month. I am not planning on liquidating my assets. I want to continue to generate cash profits each month. Since I know how to use the great Compound Stock Earnings Management techniques, I can generate cash even on “fallen positions”. Because, stocks go up and they go down as the market moves in either direction. This truth allows the CSE techniques to be able to generate that cash in premiums.
I will continue to manage my portfolio for monthly cash flow until I get each position to a profitable close.

So, like you, I do not like seeing the markets go down, I would much rather they just go up every day, forever. But, that is not the market reality. Since I have made the decision to invest in the stock market, I must realize that there will be up markets and down markets. We are now experiencing a down market period. I do not know how long it will last, but I take comfort in knowing that I can generate cash income on my portfolio without being forced into selling my stocks for a loss. I can use the Compound Stock Earnings Management techniques to generate that cash income. Of course, I want to “will” the markets back to all time highs. I look forward to seeing many of you at future CSE seminars. If you have not mastered the CSE Management techniques, I encourage you to attend or re-attend the next 2-Day Intensive Seminar either in person or on line with the Dallas seminar later this month. You can also take advantage of the other CSE educational services such as subscribing to the Wednesday Live-in-the-Market Coaching sessions.

The Economy Today - CSE

The news is constantly filled with reports on the volatility of the economy and how it affects the stock market. However, the opportunity to make money in the stock market by using covered calls exists even in volatile times.  For over 10 years Compound Stock Earnings has been teaching investors how to make 3-6% per month from their stock investments, regardless of whether the market is heading up or spiraling down.  The Compound Stock Earnings proprietary application of the Covered Call technique has been developed and practiced by Compound Stock Earnings founder Joseph Hooper for over 25 years.

In 1999, Joseph Hooper founded Compound Stock Earnings in order to educate everyday investors in the field of Covered Calls.  Hooper, a former broker and bank owner, had found throughout his career that the correct use of the Covered Call. When used correctly, the Covered Call generates monthly income.  Having additional revenue streams is always a good thing and the proper use of a Covered Call is just that – an additional revenue stream.  Compound Stock Earnings clients use the Covered Call method in both retirement and nonretirement accounts and many reinvest the large monthly returns to dramatically grow their portfolio over a relatively short period of time.

Compound Stock Earnings founder Joseph Hooper’s wealth of experience as both a bank owner and a stock broker have given him the knowledge and ability to hone the process of writing covered calls in such a manner as to be easily teachable to even the most neophyte investor.    Compound Stock Earning’s  proven program will show you how to analyze your portfolio to determine the best  investment strategy that works for your financial goals. Once you’ve mastered the first stages of covered call options, you can move onto Compound Stock Earnings’ advanced LEAPS program for an even better grasp on the path to greater financial gain.

Success in covered call option writing simply means extra cash in your pocket every single month.  With Compound Stock Earnings renowned training and education program you will learn the steps of writing covered call options in a logical manner. Compound Stock Earning has been teaching their method to investors since 1999. Compound Stock Earnings program and methods help you avoid the pitfalls often encountered by uninformed or rash investing. If you want to earn a great monthly return, Compound Stock Earnings can teach you how to extract even more value from your Covered Call Options.  With Compound Stock Earnings, you will receive the most comprehensive education on Covered Call investments available today.

Compound_Stock_Earnings.wmv Watch on Posterous

The Economy Today - CSE

The news is constantly filled with reports on the volatility of the economy and how it affects the stock market. However, the opportunity to make money in the stock market by using covered calls exists even in volatile times.  For over 10 years Compound Stock Earnings has been teaching investors how to make 3-6% per month from their stock investments, regardless of whether the market is heading up or spiraling down.  The Compound Stock Earnings proprietary application of the Covered Call technique has been developed and practiced by Compound Stock Earnings founder Joseph Hooper for over 25 years.

In 1999, Joseph Hooper founded Compound Stock Earnings in order to educate everyday investors in the field of Covered Calls.  Hooper, a former broker and bank owner, had found throughout his career that the correct use of the Covered Call. When used correctly, the Covered Call generates monthly income.  Having additional revenue streams is always a good thing and the proper use of a Covered Call is just that – an additional revenue stream.  Compound Stock Earnings clients use the Covered Call method in both retirement and nonretirement accounts and many reinvest the large monthly returns to dramatically grow their portfolio over a relatively short period of time.

Compound Stock Earnings founder Joseph Hooper’s wealth of experience as both a bank owner and a stock broker have given him the knowledge and ability to hone the process of writing covered calls in such a manner as to be easily teachable to even the most neophyte investor.    Compound Stock Earning’s  proven program will show you how to analyze your portfolio to determine the best  investment strategy that works for your financial goals. Once you’ve mastered the first stages of covered call options, you can move onto Compound Stock Earnings’ advanced LEAPS program for an even better grasp on the path to greater financial gain.

Success in covered call option writing simply means extra cash in your pocket every single month.  With Compound Stock Earnings renowned training and education program you will learn the steps of writing covered call options in a logical manner. Compound Stock Earning has been teaching their method to investors since 1999. Compound Stock Earnings program and methods help you avoid the pitfalls often encountered by uninformed or rash investing. If you want to earn a great monthly return, Compound Stock Earnings can teach you how to extract even more value from your Covered Call Options.  With Compound Stock Earnings, you will receive the most comprehensive education on Covered Call investments available today.

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Guest Editorial for Compound Stock Earnings

SPECIAL NOTE:

My wife and I will be traveling in Europe for the next several weeks. We will be having guest Editorials during this period. I am still submitting the CLIENT EMAILS portion of the Cow Report. Will return to writing the Editorial upon returning to the States.

Thanks,
Joseph R. Hooper

Given Joseph is still on vacation, Greg Beauchamp will write this week's editorial. Greg teaches the Compound Stock Earnings Monthly and Weekly Credit Spread Seminars and is also in change of our Weekly Credit Spread Platinum Selections Service. He has now been trading with Compound Stock Earnings for over six years and is a very valuable part of our team.

GUEST EDITORAL:

I am quite honored (and a bit afraid) to be asked to write this week’s “Joe Hooper Editorial.” I’m afraid because

a) I’m typically long-winded, and

b) I like to be funny, but I’m the only one who thinks I’m funny, so Joe will read this and think, “that’s dumb” and Aaron will have to explain to him that I’m trying to be funny, then, Joe will say, “well, it’s not funny,” and Aaron will explain to him that I’m never as funny as I think, and Joe will say, “remind me to never ask him again”... and

c) I never consider myself smart enough to teach a seminar, or run a platinum service, much less write an editorial on Joe’s behalf; and

d) I’m long-winded (and tend to repeat myself).

Rules-based trading is critically important. Rules-based trading was one of the critical aspects that brought me to Compound Stock Earnings. Rules-based trading is crucial for success. It takes emotion out of our decision-making process, and allows us to act with reason. It allows us to be ruthless traders, not blown here and there by emotions. Emotions are the primary cause of trading failure. We allow fear or greed to affect our decisions, and that effects our results (I did use affect and effect correctly – I looked it up so you don’t have to).

When you use the Compound Stock Earnings rules-based trading, you can rationally follow the rules. While there are subjective decisions to make, there are always rules to guide us. I’ve spoken to hundreds of clients over the past six years, and every one who loses money breaks the rules. Invariably, after a costly lesson on rule breaking, these clients get back to the rules and start producing the consistent returns that most of us regularly enjoy.

Speaking of emotions, I’ve found that I am a much better trader when emotions are held in check. That’s hard for me, because I’m an emotional person. I like to live big, and love big, and laugh hard. I even cry (there, I said it. I didn’t want to say it, but one look at any scene of Brian’s Song and I turn to a blubbering idiot (I know the idiot part is simple to believe)) (are you impressed that I keep track of open parenthesis?). As an emotional person, I have to be careful that I don’t trade with greed or fear. They are the two worst emotions any trader can have. Here’s what I do: first, I remember the rules, and make sure I follow them to the letter. Second, I remember that there are a lot of things more important than my trading results. My significance is NOT based on trading. I look at The Lovely (my wife of 21 years) and my three kids, and know that there are a lot of things more important than trading. When I have a great month, I don’t puff my chest and think I’m more special than I was. If I have a losing trade, I don’t take it personally. I move on, just as anyone would do in any business. At the end of the day, if I have my faith, and my family, and everyone is healthy, then life is good. And with that perspective, I have little greed nor fear in my trading.

Money is not the most important thing in life. I don’t want to get too philosophical here, and I’d feel much better if this were all only funny. Money is a tool to provide for the necessities in life for you and your family; and it is fun to have a bit extra for things you enjoy; and it can be used to make the world a better place.

To that end, I have to tell on Joseph Hooper. My daughter is 16 years old, and wanted to go this summer on a mission trip to Ghana. Some of you may wonder about the sanity of parents who would let their 16 year old daughter go to Ghana, but we believe a) there are precautions in place to keep her safe, and b) there are more dangerous places than that less than 10 miles from our home here, and c) she can see things in Ghana that she cannot see here, and can expand her worldview. She can see how people live in third-world countries, and she might gain a perspective on her life here. Besides that, she has a big heart, and wants to go help.

All of her friends started writing letters and sending them to everyone they know, to raise support for the trip. The trip costs $3,000. The funny thing is that we know we’re going to get letters from dozens of kids, and all those parents are all getting the same letters, so we’re paying for most of the trip by donating for each other’s kids, and they donate to ours (but that’s an aside). I told her that I wanted her to a) send out as many letter as she could, and b) to get a job at a local hamburger place where 50% of her pay would go to cover the cost, and c) I’d cover any shortages.

So Sarabeth wrote letters. Now Sarabeth is quite tenacious, and was determined to raise the entire amount herself, and wanted to send out more letters than anyone else. That means she asked me for my Rolodex to send letters to everyone.

Then she asked the question I had been dreading, “May I send letters to Joe and Aaron?” She has never met Joe or Aaron, but they are such a great part of our family’s life that my kids feel like they know Joe and Aaron, so it was a natural question. I said, “You can send one letter to them, and send it to the office.” She did.

Two days later, a courier came to the door with a hand-delivered envelope from CSE addressed to Sarabeth. When she opened the letter, she saw that Joe had written her a check for $3,000. He paid for the entire trip to Ghana!

Sarabeth first cried (she is her father’s daughter, and she is 16 years old). She then called all her friends (she is 16 years old). She then got all her friends together, and they had a Joe Hooper party. Joe, Aaron and CSE are the talk of the trip!

Joe and Aaron know that money can be used for a greater good. Because of their generosity, AIDS babies will be held, and orphans will be played with, and people with no food will be taken food, and Sarabeth will have an opportunity to make a difference (which is crucial in finding meaning in life). Sarabeth is scouting a location to dig a water well in the area, and when she returns, she’s already told me she is putting together a presentation to build a CSE well in Ghana for a community where they have to walk seven miles to fill their water jugs for the day. If she finds a worthwhile need, she’ll be eager to ask us to help with that cause. If that happens, I suspect you’ll hear from Sarabeth. You and I trade to make money, and if we use it correctly it can be used to make the world a better place. Thank you, Joe!

The cruise was great. There were aspects that will be improved, but the strength of the cruise was the ability to get to know each other, and visit with other traders, and get a glimpse of other CSE strategies and watch great traders do their thing in real-time. The Lovely and I are already excited about next year. I hope you will join us. We will be in Europe next year, and it will be great.

Speaking of Europe, Joe and his family are in Europe right now. They are there because Joe is committed to helping us all be more profitable traders. Over the last few months, European news from Greece and Portugal and Spain and the Euro have caused occasional havoc in the US market. Because Joe is so committed to us, he is there fixing the European crisis even as we speak. I have not heard one negative report since he got there! Way to go, Joe. Keep up the good work.

I spoke with Aaron today. I always appreciate his insight on trading – he always has something in the works, and I am excited about the future at Compound Stock Earnings. I am very thankful that Joe and Aaron have taught me a great skill, and thankful they continue to make it better. Aaron and I have a great surprise for the Masters, but you’ll have to attend to enjoy it. Trust me, it will be fun.

We’re in the midst of summer trading. It’s always wacky trading during the summer months, and this one is no different. We’re seeing wild swings up and down in the markets. That’s why we need rules. If you find trading difficult, you need a rules-based approach, and CSE is the best there is.

Now to some personal stuff: I reread my favorite fiction book this summer (for the 5th time – I read it every other year, just because it’s fantastic). If you’re looking for a good book (it’s the best fiction book ever written IMHO), try Jeffrey Archer’s As The Crow Flies. You’ll thank me. If you love that, then read Archer’s Kane and Abel. If you like that one, then read all the other Jeffrey Archer books. They are all great.

Let me wrap this up. I believe in rules-based trading and I am a father of a 16-year-old daughter. So, I’ve come up with 10 rules for anyone who wants to date Sarabeth. Here they are:

Rule One: You must have a GPA of 3.95 (on a scale of 1-4) or higher.
Rule Two: You must have never had a speeding ticket nor any traffic violation.
Rule Three: You must own a cell phone with a location-tracking capability which I can easily and constantly access.
Rule Four: You must wear a baseball glove on one hand and a hockey goalies glove on the other hand at all times when you are with my daughter.
Rule Five: Speaking of goalie equipment, you must wear a goalie’s mask at all times.
Rule Six: You must have her home prior to 9:00 p.m. – that’s my bed time and I don’t want to wait up longer than that.
Rule Seven: Prior to your first date, you must supply:
a. Driving Record
b. Financial Statement of you and your parents
c. Be gainfully employed at a job in which you work at least six of seven evenings per week. Rule Eight: You must ring the doorbell when you pick her up, and you better wait in the car out front until she’s in my house.
Rule Nine: You must pull up your pants, and never let anyone see your man panties.
Rule Ten: The following places are not appropriate for a date with my daughter:

• Places where there are beds, sofas, or anything softer than a wooden stool.

• Places where there are no parents, policemen, or nuns with eyesight.

• Places where there is darkness.

• Places where there is dancing, holding hands, or happiness.

• Places where the ambient temperature is warm enough to induce my daughter to wear shorts or anything other than overalls, a sweater, and a goose down parka zipped up to her throat.

• Movies with a strong romantic or sexual theme are to be avoided.

• Movies which feature chainsaws are okay.

• Hockey games are okay.

• Old folks homes are better.

  That’s it. Follow the rules, and your trading life will be better. It is why CSE is the finest investment education firm in the world, and why we are so successful. If the boys in our world follow the rules, they might survive, too.

  Greg