Fact, the average person has one source of income and that’s their J.O.B.
Fact, the average person if they were to use lose that job, that J.O.B. is weeks, maybe months away from being thrown in the street.
Fact, most people will do nothing to change it.
Robert Roy here, founder of WealthBuildersHQ.com, and I’m here to show you how the wealthy make money…
Let’s talk about, what I call, a four-legged stool. Now, you have to understand where that comes from. A four-legged stool says you’re not a person that has one source of income. I want you to have multiple sources of income, multiple streams of income.
Let’s talk about what the four legs of the stool are. The very first thing is you’ve got to your job. I don’t want anybody to quit their job until they learn how to be a successful trader in the market, that’s number one.
Number two, we’ve got futures which are the e-mini futures, they’re low-cost, a great vehicle that trades almost 24 hours a day.
From there you have options which are stock options that you can trade on big companies or small. Then lastly, you have something that is called covered calls. This is the way we do, what is called, renting out our stock.
Let’s dig in. The average person has a one-legged stool. What does that mean? You’ve got your job, if your job gets taken away from you you’re out of business. You have no income, you’re living on unemployment, you’re hoping you have enough money to get you through. You’re tapping into retirement, you’re taking out loans, you’re asking the “Bank of Love,” Mom and Dad, family members to help you out.
Most individuals fail, why? Because they have a one-legged stool. I want you to have more than one. Their job is their one leg. You’re relegated to what your boss says. “Well, we don’t need you anymore.”
The first leg we’re going to talk about today is called options trading.
Now, as an options trader, it’s a leveraged vehicle. You can purchase an option on stock for much less than the stock price is work, maybe 5% or 10% of the overall stock’s price. You use it for building long-term wealth. Now, each one of the legs that I’m laying out for you has a different purpose.
It’s not that I’ve got a four-legged stool and everything does the same thing. Each leg has a different reason, a different purpose for being part of the system. Options are for building long-term wealth. Now, it’s not important what strategy you use. The importance is that you’re building that wealth, utilizing options, leveraged vehicle.
From there, we’ll talk about futures which are e-mini futures, it’s a mini-sized futures contract on things like the market, so could be on the S&P or the Dow, it could be on oil or gold, corn, soy, multiple vehicles could be traded here. We’re looking for a mini contract, so very small money at risk, very small cash required to do the trade. We use these for paying the bills.
I want you to generate enough income each and every month to pay your bills from this trading strategy alone. I want you to think about this for a second, what if you could do that? What if you could take yourself and have no bills to worry about every month? What does your life look like? What does your stress level look like?
You know, if you took an unlimited supply of money and you threw it at your 10 worst problems you’re going to solve nine of them just like that. The one that you can’t solve with money would take more time, and if you had an unlimited supply of money you’d have the time. I want you to be able to pay your bills using this and take away the fears of how do I live each and every day?
It is short-term trading, we are in and out of these trades very quickly, within the same day. Don’t worry if you’re saying, “But Rob, I work when the market’s open.” Mm-mm (negative). One of my favorite times to trade this is 8 PM Eastern when the markets are open at night and we’re trading against some of the foreign markets, like the Asian markets and the Australian markets.
Then, we have covered calls. Oh, I’m a huge fan of these. Your jobs that one income source you have now, many you have a for your 401(k). You put your money in there with absolutely no idea how to invest, what positions to put it then, whether you’re doing good or not, how do you predict if the market’s turning or not in there, and you just throw money at it, leave it there, close your eyes, and hope it’s going to be okay one day.
Instead, we’re going to utilize a strategy called covered calls. Basically, what we’re doing is we’re using this for retirement. We’re building that long-term wealth, our retirement wealth in here. What we’re doing is renting our stocks out, that’s the phrase, write it down if you don’t know it, renting out our stocks. We’re going to look at three different types of covered calls. You’ve got a traditional covered call, you have a diagonal, and there are futures that we trade covered calls on as well.
We look at time requirements for your job. What does that mean? The average person works about 45 hours a week.
That doesn’t mean you put in 45 hours a week because you also get ready for work which is five hours, you travel to work both ways is 10 hours, and I know for some places it can be more it.
I realize some of you may be fortunate and work a lot closer to home, but you’re looking at about 60 hours a week for prep time for work. We haven’t talked about getting your lunch ready, we haven’t talked about the cost of going back and forth to work, the wear and tear on your car, we haven’t added any of that in.
When we look at the educational time requirements for trading the market what do we need? Well, the very first one is the futures, the e-minis. I need you to put about two hours a week into trading futures. “Really Rob, that’s all?” Yes, that all it is, about two hours a week.
When we look at options it’s about two hours a week. When we look at covered calls I spend about an hour week in my covered calls, so we’re looking at 5 hours, not 60 hours, a big difference.
It all starts with mindset. You’ve got to get it right up here before you could ever get it right down here, in your wallet. Number one is a commitment. You’ve got to commit to doing it and I’m hoping you will love it. That you will enjoy becoming a trader.
Number two is to be flexible. Don’t become attached to your tradings. Men, we’re the worst. No, no, no, no, no. We just won on 99 trades, the 100th one went against us, it’s XYZ stock and we’re going to get our money back on XYZ. No, it doesn’t work that way. Let it go, don’t be attached to that trade. If the trade says get out, it’s time to get out.
Focus on the execution. The right strategy for the right idea. Make sure you’re trading the right way. In other words, you’re not trading covered calls by using the short-term e-mini futures, which is a day trade. You use the right strategy for the right technique.
Number four is to calculate your expectancy. In other words, what do the numbers look like? Is this one good for us or not?
Hold yourself accountable for the mistakes that you make. It says, “This is the path to improvement.” If you do not take into account what you did wrong and you do not improve upon it you will never be truly successful in life or in trading.
Number six, do what works for you. Don’t worry about what others are doing, what works best for you.
Number seven is to establish a routine. It’s always best to over prepare. I’d rather have more companies to trade and run out of money than not have enough companies to trade.
Determine your unfair advantage, we all have one. What is it that you’re really good at?
Number nine is to remain humble. Do not go around and say, “Look how successful I am at this.” Remain humble.
Number 10 is to visualize what you want and make it happen.
Let’s look at the daily routine. What time do you have to put into your trading business every week? In other words, layout the number of hours that you have, and when you have them every single week. A, how much can you commit to the following: your education, which is probably the most important component? You don’t go and say, “I want to be a doctor, so here’s what I’m going to do.
I can’t afford medical school, so I’m going to go do some operations, I’ll make some money, and then I’ll go to medical school.” No, you get the education first. Certainly, you will not be operating on me if that’s who you are as a doctor. Education first.
B, how much time do you have available for trading? “Well, Rob, I work all day long.” There’s trading at night, there are ways to trade all of these without ever having to be in front of the market when it’s open.
C is testing. Testing out the strategies and the systems that work for you and your risk profile. How much money do you have available to trade each strategy? Not how much do you want to put in, how much do you have available? The figure you’ll want to put in after. What do you have available cash wise to put into the strategies?
Then, number four is to document your plan. Now, let me back up to number three for a second. You don’t need a lot of money, you don’t. You can find stocks that are very low cost and options on them even lower than that.
Now, let’s talk about “10X-ing” your life. I am a huge fan of 10X.
I have students ask me all the time, “Rob, I don’t know how you get everything done. With family, church, running your businesses, trading, teaching us, getting on phone calls, all the free stuff that you do for us, the training that you do. How do you possibly have time to do it?” That’s what I’m talking about here guys, that’s the 10X your life.
What is 10X? It, basically, is doing more than what the average person will do, but being hyper-focused on what you need to do not what you want to do.
Is it for you? Well, I think everybody can benefit from it, and what if you didn’t 10X your life, but you 7X-ed it? Or 8X-ed it, or 3X-ed? You did more than what the average person was doing? I think everybody can benefit from it.
How has it changed my life and business? When I focus, when I got that hyper-focused I was able to find more time available to do the things that I want even though I was putting more time and effort into my business. I had things on my list that would go for weeks, and I would keep moving them down day by day and never getting them done. I focus very heavily on it and make sure that I surround myself with a team that can do the things that need to be done that I am not an expert in.
To 10X your life you need to be uncomfortable being comfortable. Write that down, “Be uncomfortable being comfortable.” Comfort is the enemy of good. Comfort is the enemy of great. Comfort is the enemy of success.
Get the book ‘The 10X Rule’ by Grant Cardone. We’ll put a link down in the description below where you just click on it and learn more about it. Great book. If you haven’t picked it up, I’ve got the book, I’ve got the audio, I’ve seen the live training for it. Phenomenal book folks for your life. Not just for trading, but for everything that you do.
To get your three additional legs in place first and then and only then do you focus on additional legs, but once they’re in place your first three legs, the futures, the e-minis, covered calls, options those are in place then and only then will you focus on additional legs.
You’ve got things like real estate, “Oh but Rob, real estate is a great investment, why don’t I do it now?” Well, I don’t know. Let’s see, the cash requirement might have something to do with it. “Oh but Rob, I’ve got the cash.” I talked about numbers, you need to know the numbers. Run the numbers. On covered call my goal is 3% a month, if you can make 3% a month that’s 36 for 36% a year.”Yeah, but Rob I can make that on real estate.” Awesome. Except in a $400,000 home you need $80,000 to get started. “Well, I know some ways around that.” Mm-hmm (affirmative), many people do, and it was called the bubble of 2007 when the market crashed. To do it right, as an investment property, you’re putting 20% down. I’m not saying don’t buy your own home, what I’m talking about is buying it as an investment. Make the money in the market first then and only then should you put the money into real estate.
Gold and silver. There’s a training that we’ve got on our schedule to do about gold and silver and where gold and silver will be going, and what the expectations are. Keep your eye out for that in the future. Guys, that’s a vehicle that I invest in all the time. We’ll talk about the hows when we get there.
Futures, you can use for hedging, offsetting your risk.
Then, cryptos is another one. “Oh, but Rob, BitCoin is dead.” It is, but cryptos aren’t. There are still ways to make money on cryptos.
Then, alternative investments become more speculation. Not something to do now, we’ll talk about on the curve where you belong in there and when you should be looking for investments for alternative investments, sorry, but it’s not today.
What’s needed for you to move forward? Big question. “Rob, how do I get started doing this?” A commitment from you. It’s not from me, it’s from you. I’m committed, I’m there. I’m doing this training that we’re posting here for you guys to learn exactly how to do what it is that I do.
It’s an internal decision to make this work. Are you committed to it? Are you ready?
You need time. “Oh, but Rob, I don’t have a lot of time.” You know what? Did you ever notice notice at your kids’ schools, as an example, that the busiest parents are the ones that are volunteering every single week and month for everything that’s there? It’s the same parents over and over again. Why? Busy people get things done. You find time for what’s important to you. Make this important to you. It’s your financial future, your financial health.
Money. “Oh, Rob, how much money do I need?” You don’t need a lot to start, but you are going to have to set some money aside for starting. You’re going to need money for education, you’re going to need money for tools, you’re going to need money to trade with. You’re going to have to have some cash to do so.
Now, talking about 10X-ing your education. We’ve got some different tools that we use guys, like Power Option Plays, E-minis, Covered Call Explorer, Monster Market Movers, our Trading University. All of these are tools that are advanced tools that are available guys. This is how we do it, this is how we help individuals get there quicker. You can do it any way you choose guys, I just need you to focus on these three: covered calls, options, and futures.
Rob’s stool or stools. See, that’s my financial life. I have multiple legs, multiple streams, multiple stools in there. I did that training in one of our trainings I did around the country was in Atlanta. One of the students in there came up at the end of the event and said, “My question was going to be for you today what do you do? And you showed that slide,” and he said, “It made perfect sense.” Having multiple businesses, I have corporations in multiple states, I own multiple businesses, I invest in some “speculative,” type businesses. There’s trading, futures, options, covered calls, spreads, and many other things that I choose to do in there as well.
Folks, there you have it. That is how the wealthy make money. You have to understand that these three are just a starting point. I need you to get started, I need you to get take the first steps, I need you to start moving forward. Don’t settle for that J.O.B., that’s what the average person does. That’s the sheep being led to the edge of the cliff and having no idea what’s going on in their life.
Add these three income sources. Remember, options, e-mini futures, covered calls, add those immediately to your list. If you want to be successful we can help you get there. In the description below I will put a link to free training that we’ve done to help you towards your own success.
There you have it, folks, make it a profitable trading day. Continue on the quest to becoming a great trader. Keep crushing it and I’ll see all of you at our next video.