1% Profit for Stock Hustle
Reading time: 5 – 8 minutes
A lot of people will give you their angle on how to make money on Stocks. Now I’m no different from them but I’ll simply explain game to you so you can decide for yourself. Again, I am not a Stock Broker I am just a cat who sat down and tried to apply my own theory. So far I’ve done pretty good so below is an example for you to review.
Let’s start off with 10 Grand because you need to be all in on this not that diversified crap.
Every week I look up what companies are going to report earnings the following week. Reporting earnings is when a company lets the public know that they either surpassed or failed to meet estimates. Estimates are when stock brokerages guestimate how much money a company will earn in profits for that quarter. So they will say GE should earn $2 in earnings then GE will come out and say actual earnings are $6. So when the company reports and it beats the estimates the stock goes up! Estimates usually come out quarterly(every 3 months) but each company can report on their own fiscal calendar aka when they decide the quarter is for them.
So every morning I log into my Scottrade Account and I wait for the earnings news to hit on CNBC. Once they announce that GE beat estimates I put all my money on GE and buy that stock.( Now to buy the stock Scottrade charges me 7 bucks). So after I buy that stock I go and workout! I know some of you are shocked but if they beat estimates the stock is not going to fall back down under where I bought it for. The game is buying as soon as they announce. The stock will go up at least 1% depending on how much they beat estimates. So 1% of 10K is 100 bucks. Now most of the time it’s more than 1% but that day I made 100 bucks. The next morning when the stock market opens I sell that stock (Scottrade charges me 7 bucks) and get ready to buy the next stock based on when they report earnings.
Now to some of you you’re saying you should sell it when it hits it’s peak! True but that’s greed and that’s called Day Trading. All I want is 1% everyday and at the end of the week I made 5%. So let’s do the math….
10K buy GE on Monday and it goes up 2% = 200 – 7 to buy & 7 to sell so NET 186 bucks!
10K buy C on Tuesday and it goes up 3% = 300 – 7 to buy & 7 to sell so NET 286 bucks!
10K buy Amzn Wednesday and it goes up 2% = 200 – 7 to buy & 7 to sell so NET 186 bucks!
10K buy Baidu Thursday and it goes up 4% = 400 – 7 to buy & 7 to sell so NET 386 bucks!
10K buy BS Friday and it goes up 8% = 800 – 7 to buy & 7 to sell so NET 786 bucks!
At the end of the week I made $1830.oo without losing 10K because I wasn’t betting on iffy crap I was only putting my money on the ones that beat estimates. The next week I start off with 11830.00 to start the cycle all over again looking to only make 1%.
So what do you do when there are no estimates for the week? Well now we play the game of seeing what stocks are moving up fast. If you watch CNBC they will let you know when a company just got approval from FDA that shoots the stock up, Tivo won it’s lawsuit and that shot the stock up, sometimes consumer confidence numbers being positive shoots the stocks up. If you are there at the time that it’s reported you will make money. In fact when others hear about it they will drive the stock even higher.
Now remember the rule all I want is 1%. Everytime I place a order I put a Sell order on the stock if it ever goes 1% lower than when I bought it. That way if I lose I only lost 1%, but if I win it can go to 22%! Yes, I have had stocks that went up 22%! As you get your Stock education up you’ll see stocks that keep going up like when I recommended Ford and Citibank! I saw these stocks kept moving so after I got past 1% I kept letting the money ride and moving up my sell order to 1% below where it closed the previous day. This way I was betting with the house money but I never lost my gains.
This is exactly what I do everyday and have been doing for the past year. I am beyond the point now where I can simply pick stocks and not go to work at all. I make enough to support my life with extra left over. So what’s the goal of this post? Get the 10K needed to play this game and be disciplined to making 1% and being happy. We are not Stock Brokers and we are just rolling with the winners but, we can make 1% a day for sure. If the stock market is bad that day don’t fret you probably made way more than 1% the previous day. Sometimes I make 18% a week and so if I lose 1% who cares I am still up for the week right?
I know this angle seems slow but do the math. 86 bucks a day times 5 =430, 430 X 4 weeks = 1720 a month! So 1720 a month and you’re not adding up that you actually have more than 10K in there after the first week. So you’ll have closer to 2ooo a month profit. Stay disciplined and wake up early and go all in. It doesn’t work if you keep putting 2k here and here and here. The math only works when you are all in. Now I’m on the West Coast so I wake up at 530 to be able to play when the stock market opens at 6:30am!
Email me at freeman@riseandgrind.com if I lost you. Remember I am not a Stock Broker, I am just sharing my angle with you and you can decide if you want to take a shot at it. See I have no loyalty to the game or any one stock I am only playing to make my 1%. So I buy all kinds of stocks even ones I never heard of at all. It’s not about all that it’s about them reporting they beat estimates and me buying in right at that moment!
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Once I hustle up 10K this summer i’m definitely going to give this a try. Good to make some money ’till next summer! btw how is the tax man with earnings on stocks?
Taxes on stocks are taxed at I believe 10-14% of your earnings. Now regular jobs tax about 33% so it’s better to make money off of stocks instead of getting a job you hold onto more.
I believe only long term capital gains on stocks are taxed at 10-15%. While in our case, short term capital gains are currently being taxed at the ordinary income tax rate depending on which tax bracket you fall into.
Welp I’m glad you looked it up but it doesn’t seem legit to tax the same action in different ways because of duration of keeping the stock. I’ll have to look into it but realistically if you are being taxed that means you made money outside of your 9 to 5.
I don’t know about that as it’s crack law ish! Same drug different penalties.
Freeman,
This is great info. Thanks for it.
I just have one MAJOR issue. I have been trying this for the past few days and the thing is, the company’s earning reports are either released before the market opens or after the market closes. This causes the price of the stock to open with a huge increase even before you buy, making it hard/impossible to profit off of the original jump.
I actually did this this week with Carmax, which was up almost 2% today, but I got in at the opening bell and it opened at 2% and end up going down, making me lose over 1% of what I put in.
Is there a way to bypass this, becasue this has also happened with Adobe and Jabil this week. The price seems to open already showing the increase due to “pre-market” trading (what is that?).
Please help!!!!
LOL I’m not the stockguy that’s your name.
All I can say to you is you are trading during a down market so I don’t trade all of the time. Second check out this link as it lists all the stocks that will report everyday. So you can do some research and probably get in before they report. Third if you look at every stock that reports if you wait for it to rise and then fall it more than likely will return back to the high it had a few days later….
Here’s the link and good luck…
http://biz.yahoo.com/research/earncal/20100621.html
Thanks bro.
10 steps ahead of you on the link already. I understand nothing is guaranteed like that in the market, but this is a really good technique here. I’m currently testing it out, but that seems to be the only problem I ran into.
Now, I actually made gains on JBL because I shorted the stock a day before.
But I’ll keep at it. Thanks!
No problem and tell me how it goes as I lay off during down times. I don’t need to make money everyday I just need to make money overall so I play the market with that focus. If I get 3% two days straight my week is good already. Patience and Discipline is the game.
@StockGuy How is the market working for you?
Freeman, couldn’t stockguy place his buy on scottrade before the market opens?
It’s more like a race than a space in the line. So even if he bought the stock after hours when the market open Scottrade has to trade at the moment it opens and after market trading might have the stock already up 5%. So you can’t reserve a space in line. The best thing to do is buy the night before before the market closes then you have your stock. But it’s hard if you’re playing the speculation game by waiting to see if the stock beats estimates.
That’s why you have to be kind of disciplined and get your 1% and bounce. If you’re greedy you think you lost 5% but if you want to make money you’ll take your 1% and call it a day and play again the next.
I see, to circumvent playing the speculation game. Maybe we could look at the financial statements for companies who will have earnings reports the following day. It seems worth a shot.
Yep, you can usually gather some good data leading up to a report and actually the market will start trending that way. You might make your money before the reporting actually happens as when Christmas comes around Amazon always does well….
You’ll start moving from speculation to doing some research and actually looking at the stock historically. Some stocks make moves at the same time every year….. OF course DVR Jim Cramer from MSNBC and you’ll have some insight into what’s coming…
yeah, been watching cnbc like crazy. so you buy on monday and sell tuesday. and buy again on weds and sell thurs??
I am not buying in this market as I’m waiting for the next round of bad news to hit then they’ll be some more deals. Otherwise it’s time to take the money from the market and start a small business as I think that’s a better return on the money when things are cheap. Real estate is even cheap right now so it’s time to accumulate assets and get those passive chips.
i see. the reason i ask is because how do you go about avoid getting hit with the day trading pattern rule. For example, you sell a stock when the market opens(bought on the previous day) and before the market closes on that same day you buy another stock(from a different corporation). you do this 5 days a week and your broker labels you as a pattern day trader, and according to sec rules if you are a pattern day trader you must have 25k equity in your account. thanks for your help
Day trading usually can be done if it’s done I think only 3 times a week. So you can do it with Scottrade, if you look up the rules of whomever you trade online with they will flat out tell you what you can and can’t do to avoid that rule…
Truth be told call them up and get the can’s and cannots so you can set up your game to make sure you don’t hit them. Most of the time day trading is to ride the speculation but if you sit back and think about the seasons and do some research you’ll do just fine trading on a next day basis.
ok, so what kind of trading do YOU do. i’ve tried re-reading your post numerous times but can’t figure out what you are doing. are you using a cash or margin account?
i plan on opening up an account with scottrade btw
I actually watch CNBC every morning and every afternoon. While listening I have a pen and pad that I write down certain stocks they say will move soon and why. I research them to see what was their high in the past 52 weeks. Then I’ll see if they are close to it again which means probably hardly no movement or if they are far from it which means movement up will be good on any news.
It’s a cash account that I use with Scottrade. Like I said I’m not a Stock Broker so don’t try to find the genuis in it. It’s a simple plan to execute if you would slow down on the greed and try to make your 1%. The speculation you are looking at is what I say I do when there’s no earnings to look at, that wasn’t my everyday angle.
I write down stocks and research them then pull the trigger and get my 1% and most of the time more. There’s no secret to it just simply taking a chance and averaging more wins than losing. If you think you are going to win everytime then you’ll never make any money because you’ll quit.
well in your post you mention being able to do this 5 days a week(in an up market) and if you have 10 gs in a scottrade cash account. then you say you buy a perticular stock(on monday) and put all your money on that. well when you sell the next day(tuesday). how do you buy ANOTHER stock the following day(wensday) without getting hit with liquidation penalties.
“there is a three-day settlement process in the u.s. if you sell a stock on monday, the funds will “settle” on thursday(three full business days later, not counting the trade date). however, let’s say you buy stock on monday but sell stock on tuesday to pay for it. the funds will be due for the purchase on thursday but the proceeds will not arrive until friday thus resulting in a liquidation.”
Aztek, look how many times do I have to tell you I am not a stock broker. When I traded my stocks my money was settled now I had more than 10K in the account so that may be why I didn’t have the settlement issues you had.
Maybe you have to start off with 5K and keep 5k open for settlement purposes. But, either way, the ball is in your court to execute it.
You have to see the difference between Step oriented plan and the theory. The theory of the plan works but you’ll have to tweek it yourself to find that magic mix of money in order to execute it.
I don’t know what else to say to you about it because I put it out for free. If I charged you for the information like a seminar then sure come back and ask for your money back but since it’s free take it and use it for your own purposes. I am not a stock broker and I don’t know how many times I have to let you know that so you stop expecting me to have all the answers like I am one! C’mon man it really ain’t that serious and if it is go to stockbroker website and let the experts tell you the ways around it.
my bad, you said you’ve done this so i was trying to see how you put it down.
No offense taken. I did it but I had more money in my account and I didn’t run into the penalties. Don’t sweat trying the things out but as I said numerous times I am not a Stock Broker so anything past the basic theory is fools gold.
You ran into problems from it and you put it on here and that’s good for everyone. So I didn’t sweat it you implemented and now you have to find a way to tweak it to perfection. That’s what I want everyone to do with the information but I can’t give a 100% guaranteed way to make money as that just doesn’t exist.
Good info. I am going to do this when I get 10gs extra, besides the money in my bank account. Where can I get more info on this 1percent rule?