Baker Symes Option Philosophy
If you have $1,000 and you double it 10 times, you are a millionaire. So if you choose wisely and successfully 10 times in a row, even if it is call or put options on one stock, and that trade doubles your money, you're a millionaire after 10 times doubling. So to me the goal is always to make better choices and work towards perfect timing, and keep your profits, rather than lose them.
For example, I will look for a a stock chart try to pick a stock that is just breaking out, along with the sector and stock market that are in favor. AAL had such a chart 3 weeks ago and I watched it like a crouched leopard, ready to pounce. All the other airlines were already up and this one was lagging.
I love bank stocks, but had to learn that bank stocks often just sit there for months and months without going anywhere. Time is only on your side until you are out at least three months to expiration. Then your option drops in half for every month until its worthless. If you choose an expiration date one month out, you better be right that this stock will rally tomorrow. Racing against the clock is not usually in your favor. Sometimes buying an option with an expiration date one or two months further away only cost a a few more cents. That's insurance money in case you are wrong in your timing or something unexpected happens. Use time to your advantage and get a close ask/bid price in case you have to sell tomorrow.
Ok, so you might say you can't always get 100% profit and your options may suddenly tank if the earnings come in bad or the stock market crashes. Yes, that's true, but it doesn't change the premise. Last Thursday when the Dow dropped 1,800 points 6 of the stocks I was watching hit buy points. But I didn't know if the market would continue to fall on Friday, so I bought 1/2 of the call options I would normally buy. Well on Friday the market bounced up 800 points out of the gate and my options jumped 15% and I sold them. Why? I didn't expect that the market would bounce that high, but my charting showed that the DJIa, the Russel 2000 both breached their 200 day moving averages and the Nasdaq broke through its uptrend channel on Thursday, which is very bearish. I thought this might be when the markets start to drop for the second bottom. I don't trust the bounce. Any profit in your pocket is profit towards your goal.
So I actually set a monthly goal of 50% increase in my entire portfolio and then work towards choosing well and taking profits. Hell it only cost $3.00 to buy and sell, so I would rather not wait for the options to drop $2,000 and say, "Oh shit now I have less than if I sold yesterday." I always keep 50% in cash, except for certain instances. For example, if these markets go down for a second bottom, I will be be all in with calls. I can't pretend to pick the exact bottom, but I have a trading range I will start buying calls, probably expiring 3-4 months out, and will expect a huge rally that first week, when everything will be discounted. I will look for everything to double, then....take profits! Until then, most of my stuff will stay in cash. I have two short positions for next week, but I usually don't like to short. I have made a lot of money shorting, but I have lost even more. No thank-you.
For example, I will look for a a stock chart try to pick a stock that is just breaking out, along with the sector and stock market that are in favor. AAL had such a chart 3 weeks ago and I watched it like a crouched leopard, ready to pounce. All the other airlines were already up and this one was lagging.
Sure enough, it jumped out of its base pattern, I bought calls $1 out of the money ($12) and followed the rally up to about 18 and sold it. Why did I sell if it was still rising? Because I had an 80% profit! It went on up to 22, I think and started coming back down. I'll buy it again after the second bottom. It's that simple. Yes, it is.
Just takes good research, good chart reading, lock in step with wall street and do it. You don't have to wait until it reverses. You should not try to guess the absolute bottom or how far the rally will go. You look at the chart to calculate where the stock will rally to and sell it when it gets there. If it doesn't get there, you sell and collect whatever profit you have.
Brokers will tell you options are so risky, but not if you choose the right stock at the right time and get a expiration time a few months in the future for insurance. You still sell when it reaches your calculated goal based on the chart. It doesn't matter when it expires. Never hold an option just because there's a long time for expiration. If the stock continually goes up, great. But 5 day rallies are the best for me. Once you have your profit you are out. You can always buy it again tomorrow if you look at the chart as if it was a new stock and determine it it still a perfect buy.
I love bank stocks, but had to learn that bank stocks often just sit there for months and months without going anywhere. Time is only on your side until you are out at least three months to expiration. Then your option drops in half for every month until its worthless. If you choose an expiration date one month out, you better be right that this stock will rally tomorrow. Racing against the clock is not usually in your favor. Sometimes buying an option with an expiration date one or two months further away only cost a a few more cents. That's insurance money in case you are wrong in your timing or something unexpected happens. Use time to your advantage and get a close ask/bid price in case you have to sell tomorrow.
Ok, so you might say you can't always get 100% profit and your options may suddenly tank if the earnings come in bad or the stock market crashes. Yes, that's true, but it doesn't change the premise. Last Thursday when the Dow dropped 1,800 points 6 of the stocks I was watching hit buy points. But I didn't know if the market would continue to fall on Friday, so I bought 1/2 of the call options I would normally buy. Well on Friday the market bounced up 800 points out of the gate and my options jumped 15% and I sold them. Why? I didn't expect that the market would bounce that high, but my charting showed that the DJIa, the Russel 2000 both breached their 200 day moving averages and the Nasdaq broke through its uptrend channel on Thursday, which is very bearish. I thought this might be when the markets start to drop for the second bottom. I don't trust the bounce. Any profit in your pocket is profit towards your goal.
So I actually set a monthly goal of 50% increase in my entire portfolio and then work towards choosing well and taking profits. Hell it only cost $3.00 to buy and sell, so I would rather not wait for the options to drop $2,000 and say, "Oh shit now I have less than if I sold yesterday." I always keep 50% in cash, except for certain instances. For example, if these markets go down for a second bottom, I will be be all in with calls. I can't pretend to pick the exact bottom, but I have a trading range I will start buying calls, probably expiring 3-4 months out, and will expect a huge rally that first week, when everything will be discounted. I will look for everything to double, then....take profits! Until then, most of my stuff will stay in cash. I have two short positions for next week, but I usually don't like to short. I have made a lot of money shorting, but I have lost even more. No thank-you.
COMPLETE Debts Paid off In 2019-2020
My last debt apart from our mortgage was paid off in May 15 2020!
This was a huge achievement, as 2017 - 2019 were crippling years in terms of these debts. Essentially in the last few years I was paying for two house and two homes, using short term debt and credit cards. It was hugely satisfying to pay off $189,000 of debt within six months, using the proceeds from the sale of Eden2 and my HP/DXC severance.
Family Trust of LLC?
By ZINA KUMOK
Updated Jun 25, 2019
You've saved for the down payment, picked out a neighborhood, and found a good house at a solid price. You’re ready to purchase a rental property. But once you’ve bought the property, are you protected legally against the liabilities that come with renting it out?
A limited liability company (LLC) and an irrevocable trust are two of the options available to protect you against some of the risks. Here's how to find out which one is best for you.
The LLC Option
An LLC is an entity you can own solely or partially. You don’t need any employees in the LLC besides yourself, and you don’t need a board of directors, which is often a requirement for corporations. Establishing an LLC separates your personal assets from your business assets and protects you in legal disputes. You can give property to your LLC, and if it runs into financial or legal trouble, people cannot seize your personal assets to pay off any debts. It’s also difficult to use the assets of the LLC for personal gain or use.However, if it is proven you did something illegal with your LLC, your personal assets are fair game. You need to be able to prove your LLC is conducting business and not being used as a place simply to hold your personal assets. There are other regular events that must occur to prove you’re using the LLC for business purposes, including filing tax returns, holding annual meetings, etc.
To establish an LLC, you have to file legal paperwork, pay a fee, and create an LLC operating agreement.
Trusts 101
There are two types of trusts, irrevocable and revocable. In the case of an irrevocable trust, as soon as it’s made the creator ceases to have control over the assets of the trust. Only the trust’s beneficiary can make changes or dissolve the trust. On the other hand, if you create a revocable trust, you still have the power to make changes.One benefit of a trust is it doesn’t count as part of the guarantor’s personal assets. If you’re trying to mitigate your estate tax burden, putting money in a trust can decrease the value of your personal assets.
What the Pros Suggest
CFP Johanna Turner of Milestones Financial Planning recommends using an LLC for their rental real estate. However, using one LLC for all your real estate can be risky, and using separate LLCs for each investment is expensive, complicated, and unnecessaryTurner has a different solution: “One way to manage this problem is to buy an umbrella liability insurance policy,” she said. “The best solution is the Series LLC (SLLC), a fairly new organizational structure that provides liability protection across a series of investments that are segregated from each other but operate under one umbrella for liability and tax purposes.”
CFP Chris Hardy, talks about the benefits to choosing a trust instead of an LLC: "A trust provides an extra layer of privacy since all the filings will be in the name of the trust," he said. Another benefit of a trust is it can help the guarantor avoid paying estate taxes on the property.
The Bottom Line
Neither a trust nor an LLC will cover you completely because renting is a liability-filled business with lots of potential problems. The protection they offer is still substantial, though, and a good idea for any potential landlord. Anything you can do to minimize the damage is the worth the time, effort and money.
COMPLETED 2020 Financial Goal - Pay off 401K Loan
Pay off 401K loan balance of approx $16,000
What this achieves: Paying off this balance moves money into a tax deferred investment account, without having to save it through a employer sponsored scheme or it counting against my
This helps me to buy assets using before tax income, and deferred paying taxes on the gains I make until I withdraw the money.
Once I have paid off this balance, I can still take new loans from my 401K, or potentially roll the balance into my Traditional IRA to reduce the number of different retirement accounts.
Date Completed: April 30 2020
2020 Emotional Release Process around Wealth Management
Feel what it feels like to be responsible for managing a lot of money
NeuroYou Protocol: Neurofuture
Insights: Emotions and beliefs experienced managing a lot of money:
Emotions:
NeuroYou Protocol: Neurofuture
- Feel what you feel like right now being responsible for managing a lot of money
- Feel what you will feel in the future now being responsible for managing a lot of money
- Combine the present and future feelings together
- Use Neutralize on the combined feelings
COMPLETE
Insights: For me the right thing to do right now is actually spend a lot of time thinking about and neutralizing all my old money stories, use the incredible resource of our library of diverse money books to research and change beliefs, and clearly energize and imprint new beliefs and feelings about money.
Insights: For me the right thing to do right now is actually spend a lot of time thinking about and neutralizing all my old money stories, use the incredible resource of our library of diverse money books to research and change beliefs, and clearly energize and imprint new beliefs and feelings about money.
NeuroYou Protocol: NeuroPast
- Feel what you feel like right now being responsible for managing a lot of money
- Feel what it felt like in the past being responsible for managing a lot of money
- Combine the present and past feelings together
- Use Neutralize on the combined feelings
COMPLETE
Insights: Right now Sylvia and I have a unique opportunity to completely reset our money story. We have enough money through Eden2 sale and access to Sylvia's mothers money to not work for some months. This allows space to relax and recovery from the horrible year we had in 2019, and really connect with a new space of possibility, identify new opportunities, and take action that will dramtically increase our wealth in the next decade.
Insights: Right now Sylvia and I have a unique opportunity to completely reset our money story. We have enough money through Eden2 sale and access to Sylvia's mothers money to not work for some months. This allows space to relax and recovery from the horrible year we had in 2019, and really connect with a new space of possibility, identify new opportunities, and take action that will dramtically increase our wealth in the next decade.
Insights: Emotions and beliefs experienced managing a lot of money:
Emotions:
- Managing a lot of money will feel calm
- Managing a lot of money will feel clear.
- Managing a lot of money will feel full of possibility
- My organizational, planning, thinking and detail orientation will be exactly the skills needed
- We will grow our assets and income every month until we choose to live only on our investment income.
- Our success will be clearly measurable, by seeing how our combined net worth increases every month.
2020 Wealth Management Beliefs
What rich people do.
- Rich people consistently spend less than they make. Poor people spend more than they make
- Rich people are happier saving their money. Poor people are happier spending their money.
- Rich people believe: “I create my life.” Poor people believe: “Life happens to me.”
- Rich people play the money game to win. Poor people play the money game to not lose.
- Rich people are committed to being rich. Poor people dream about to be rich.
- Rich people think big. Poor people think small.
- Rich people focus on finding opportunities to make money. Poor people focus on the obstacles to making money.
- Rich people admire other rich and successful people. Poor people resent rich and successful people.
- Rich people associate with positive, successful people. Poor people associate with negative or unsuccessful people.
- Rich people are willing to promote themselves and their value. Poor people think negatively about selling and promotion.
- Rich people are bigger than their problems. Poor people are smaller than their problems.
- Rich people are excellent receivers. Poor people are poor receivers.
- Rich people choose to get paid based on results. Poor people choose to get paid based on time.
- Rich people think “both”. Poor people think “either/or”.
- Rich people focus on their net worth. Poor people focus on their working income.
- Rich people manage their money well. Poor people mismanage their money.
- Rich people have their money work hard for them. Poor people work hard for their money.
- Rich people act in spite of fear. Poor people let fear stop them.
- Rich people constantly learn and grow. Poor people think they already know.
- Rich people are empowered, energized and freed by the money they have. Poor people are dis-empowered, de-energized and trapped by their lack of money.
How do I measure up
I feel responsible but boring and unexciting.
What emotion do I feel when spending more than I make?
Spending more than I make creates stress and panic.
1. Rich people consistently spend less than they make. Poor people spend more than they make
What emotion do I feel when spending less than I make?I feel responsible but boring and unexciting.
What emotion do I feel when spending more than I make?
Spending more than I make creates stress and panic.
What emotion do I want to feel when spending less than I make?
I want to feel blissful calm and safety because my bank accounts grow every single month.
I want to feel blissful calm and safety because my bank accounts grow every single month.
2. Rich people are happier saving their money. Poor people are happier spending their money.
What emotion do I feel when I am saving money?
Saving makes me feel virtuous and like I'm being good.
What emotion do I feel when spending money?
Spending makes me feel nervous and worried.
Saving makes me feel virtuous and like I'm being good.
What emotion do I feel when spending money?
Spending makes me feel nervous and worried.
What emotion do I want to feel when spending money
I want to feel clear, calm and excited because spending money means I am creating what I value in my life.
I want to feel clear, calm and excited because spending money means I am creating what I value in my life.
3. Rich people believe: “I create my life.” Poor people believe: “Life happens to me.”
What emotion do I feel when I am creating my life:
Creating my life is hard work and I often feel alone in taking responsibility to generate new ideas, convince others to take action, and make things happen.
Creating my life is hard work and I often feel alone in taking responsibility to generate new ideas, convince others to take action, and make things happen.
What emotion do I feel when life is happening to me?
I feel calm because there is nothing to do, I just need to react.
I feel calm because there is nothing to do, I just need to react.
4. Rich people play the money game to win. Poor people play the money game to not lose.
My old story about playing the money game:
"You have to have a lot of money to make money, and I'll never have enough"
"You have to have a lot of money to make money, and I'll never have enough"
My new story about playing the money game:
"I have the skill, the time, and the money to successfully invest and grow our wealth to achieve permanent financial independence"
"I have the skill, the time, and the money to successfully invest and grow our wealth to achieve permanent financial independence"
5. Rich people are committed to being rich. Poor people dream about to be rich.
My old story about being rich:
"I don't have the right personality to become rich. I'm just not pushy and aggressive enough"
"I don't have the right personality to become rich. I'm just not pushy and aggressive enough"
My new story about being rich:
"I'm committed to energize every action I take to become rich"
"I'm committed to energize every action I take to become rich"
6. Rich people think big. Poor people think small.
My old story about thinking big:
" I'm just not pushy and aggressive enough to make big deals and get rich in business"
" I'm just not pushy and aggressive enough to make big deals and get rich in business"
My new story about thinking big:
"I continually push myself to imagine the emotional experience of what it means to think big financially"
"I continually push myself to imagine the emotional experience of what it means to think big financially"
7. Rich people focus on finding opportunities to make money. Poor people focus on the obstacles to making money.
My old story about finding opportunities:
"My family didn't come from money, so I never came into contact with people that could offer me financial opportunities"
"My family didn't come from money, so I never came into contact with people that could offer me financial opportunities"
My new story about finding opportunities:
"I'm actively feeling the space of possibility in my own consciousness. From that that space, ideas for financial opportunities occur to me effortlessly"
"I'm actively feeling the space of possibility in my own consciousness. From that that space, ideas for financial opportunities occur to me effortlessly"
8. Rich people admire other rich and successful people. Poor people resent rich and successful people.
My old story about admiring other rich and successful people.
"Rich and successful people have something I just don't have, that's why they are rich and I am not"
"Rich and successful people have something I just don't have, that's why they are rich and I am not"
My new story about admiring other rich and successful people:
"I actively feeling being rich in all its detail"9 Rich people associate with positive, successful people. Poor people associate with negative or unsuccessful people.
My old story about associating with positive, successful people.
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My new story about associating with positive, successful people.
"I actively feeling associating with positive people in all its detail"Rich people are willing to promote themselves and their value. Poor people think negatively about selling and promotion.
Rich people are bigger than their problems. Poor people are smaller than their problems.
Rich people are excellent receivers. Poor people are poor receivers.
Rich people choose to get paid based on results. Poor people choose to get paid based on time.
Rich people think “both”. Poor people think “either/or”.
Rich people focus on their net worth. Poor people focus on their working income.
Rich people manage their money well. Poor people mismanage their money.
Rich people have their money work hard for them. Poor people work hard for their money.
Rich people act in spite of fear. Poor people let fear stop them.
Rich people constantly learn and grow. Poor people think they already know.
Rich people are empowered, energized and freed by the money they have. Poor people are dis-empowered, de-energized and trapped by their lack of money.
- I've been meticulous and focused on building net worth for the last 20 years.
- I've been detail orientated and focused on financial details.
- I focused on a well paying salaried job in order to have money to consistently save and invest.
- I bought three homes and sold two, making profits on each.
- I bought assets using before paying taxes on my income, by saving and investing in my 401K
- I focused on knowing my net worth every month, so I could see what causes it to change and what financial strategies are working.
- I've worked on my emotions around money, investing, and being wealthy.
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