How I Trade Stocks For a Living -- [Chapter 8]

CHAPTER 8:  The Beanieville System (Part 3)
 
The first example is one way you can use The Beanieville System, by using
the Rule of 72, in your favor.  The next example is another way to apply The
Beanieville System.  On this next example, you could have chosen a
business/stock from the solar sector which you think has a very bright
future.  So you pick the best business of the bunch, First Solar (FSLR).  In
fact, FSLR was the solar stock that I first recommended when it was trading
around $50.  (Nowadays, I only mostly buy businesses that are above $50). 
Let's say you bought 500 shares of FSLR at $50 beginning of 2007 on the
breakout.  So you've spent $25,000 investing in this business.  The amount
$25,000 is a lot of money and you're not sure you want to re-invest back
into the business with your $BVI's, because you see several solar companies
and you're not really sure who's going to survive in the long run.  So your goal then would just be to generate the BVI and keep that in cash and ​use that cash to invest in a really good company later on​ ​(again applying The Beanieville System to generate BVI)​.  You can day trade it, swing trade it, or position trade it, with the goal of buying it back lower than the price you sold it.  Fast forward 1.5 years from when you first bought the stock, which would be today, Aug 2008.  Within that 1.5 years, you would have generated plenty of $BVI's, certainly by now enough to pay for your initial investment of $25,000.  So now, you pretty much own the
stock/business free and clear. 

You still have 500 shares but now the price of the stock is at $270.  The value of your business is currently at $135,000 ($270 x 500 shares) and this doesn't even include the income ($BVI) that you have already generated for 1.5 years and will continue to generate for the life of this business until the day the stock implodes and losses all its volume.  This could be a very very very long time for a stock like FSLR. 

What if FSLR becomes the solar intel like I think it will?  It could do a
forward split several times!  Your initial 500 shares could become 1000, and
then 2000 and then 4000 shares!  Even with just 500 shares that you own
right now, you are already generating MASSIVE INCOME ($BVI).  For every
20 BVI (as in, you sell FSLR at 270 and buy back at 250) you generate, you
are essentially creating $BVI = BVI x number of shares = $20 x 500 =
$10,000 in real income for yourself.  For every BVI you make, you are
creating $BVI = $1 x 500 = $500.  Can someone who owns 500 shares of
FSLR make a living trading the stock market, you ask?  The answer is a
resounding YES YES YES!  You bet!  Are you starting to see the absolute
simplicity, logic and power behind The Beanieville System?  It blew my mind
when the light bulb first turned on several years ago, and it still blows my
mind to this day.  By the way, I still own at least 500 shares of FSLR that I
recommended at the beginning of 2007 at $50 per share.  And I still trade it
pretty much everyday to generate BVIs.
 
This is how I can make a living in the stock market as a full time
trader/investor, while so many of my peers continue to struggle and fail. 
I'm not the best chartist or even the best trader around, but what I have is
what I consider the most powerful trading/investing system in the world, bar
none.  Now, you can become a part of it.  These are very exciting times,
indeed.  In my opinion, The Beanieville System makes the stock market the
best business opportunity ever.


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