Compound Stock Earnings - Compound Stock Earnings
Compound Stock Earnings (CSE) was founded by Joseph Hooper in 1999. The company specializes in educating investors on what is known as the covered call method.
The covered call investing procedure involves the investor selling option contracts, rather than the actual stocks. The company conducts seminars on the subject of covered calls. After learning the company’s techniques, an investor can earn up to 10 percent return per month on his investments.
The company suggests that the money be used for attaining such goals as:
• Saving for college
• Planning for a special vacation
• Paying off loans
The covered call method is not a get-rich-quick scheme. However, the experts at CSE do say that it frequently generates a stable monthly income for most investors. It is the goal of these experts to teach investors the skills required to master this method of investing.
In order to learn the fine points of the stock market, CSE suggests practicing on paper first. This might be in the form of using an online simulator, or by using spreadsheets and doing it by hand. Practicing writing covered calls can be an invaluable tool in developing expertise. In choosing the right stocks, for both purchasing, and covered calls, the company recommends the following guidelines:
• Stay away from companies that have a lot of debt. Compare the company with others in the same industry. If the debt seems too high in comparison, avoid that company’s stock as an investment.
• Look at a company’s earning statements. A company that has a sound, consistent rate of earnings is better than one that is unstable.
• A company should be growing, both in the earnings it brings in, and in profits.
• A company should have a growing cash flow.
• Avoid fad companies that won’t be around in a few years. Pick those that are practical and will still be in existence in the future.
The experts at Compound Stock Earnings say that a major advantage of writing covered calls is the relative low risk. It does not involve buying or selling actual stocks. Thus, covered calls are not as subject to the volatility of the stock market. By learning the techniques taught by the experts of Compound Stock Earnings, an investor is capable of developing a steady and consistent monthly income.