Buy Manual Buy CD Download EBook Attend Seminar
How to use this website
FAQ
In response to...
Articles
Book Reviews
Required Reading
Online Brokers
Charting Websites
News/Info Websites
Bearish Websites
Media
Wall Street Inanities
Simplespread Problems
The Investor's Quiz
Glossary
Resources
Press Releases
 
 
Featured Articles

Ominous Tops and Bottoms
(4Feb05)

Featured Resources

Where Should You Have Put Your Money
- Archive


 

 
 
During every year you've been alive, there have been ample opportunities to take money out of Wall Street. Have you gotten your share?

If you haven't, it probably has a lot to do with how you make stock market decisions.

Are you a buy-and-holder? A short-term trader? An indexer? A seeker of value, a cycles follower, a technical analysis whiz-kid, a dividend collector, a high-growth chaser? A rumor mill addict? A chart-reading wizard? A dyed-in-the-wool balance sheet bean counter? A Warren Buffett wannabe? A Peter Lynch devotee? Or a... Simplespreader?

Do you know which stocks to buy, what price to pay for them, when to buy them, how to buy them, how to hedge them, how to manage them, and how and when to sell them?

Which, what, when, how, and most important - why?

And can you make consistent decisions trade after trade, month after month, market after market?

The Simplespread Strategy can. It is the ultimate in consistent thought & action for seeking out profits in the stock market.
The strategy you choose should be consistent throughout all types of markets. Don't be lulled into the mistake of thinking that you'll be able to switch strategies when the environment changes. You are assuming you will accurately predict all future bull and bear markets. Nobody has ever done that with any consistency. Nobody ever will because it involves too many indeterminables.
And with The Simplespread Strategy, you don't need to.
 
Markets are psychological phenomena. Value is in the eye of the (stock) holder. Stocks, bonds, gold, cattle, baseball cards, Swiss Francs, a piece of real estate, a Van Gogh original, a vintage Model T, a Cabbage Patch doll.... Today, they're all worth exactly what someone will pay for them...TODAY. But the act of investing is determining what someone will pay for them TOMORROW. And that's what The Simplespread Strategy is all about.

During my 12 years as a member and market-maker (aka specialist or trader) on the floors of the Chicago Board Options Exchange and the Pacific Stock Exchange, I had the opportunity to try every possible stock market strategy ever invented, as well as watch other traders try every possible stock market strategy ever invented, plus invent a few of my own.

The trading floor became a laboratory to test results in real-time (and real money) experiments. A few traders and strategies succeeded, but most didn't.

Family, friends, and acquaintances would call to ask for my investment advice. "Hey, buddy," they'd say, "you're right there in the middle of the action. Give me the latest rumor. What looks good? What do you like?"

The problem was that they were talking "long-term" and I was trading short term. My idea back then of long-term was a couple of hours from now. I could be a buyer in the morning, sell out everything by noon, then go short in the afternoon, counting on a big drop by the opening tomorrow so I could cover.

But after several years of making excuses of why I couldn't really be of any help, this concept of the trading pit being a laboratory began to take shape in my mind as to what non-floor traders could do to make money in the stock market.

Since you, as a public investor, cannot make hundreds of trades (decisions) a day while watching the news as it is reported minute by minute or watch the order flow as it comes in from the investment houses, I wanted to find something that would be workable for your situation. I traded options so that was where I began my search. Throughout history, call options have been the greatest game in town...for the seller. The unique characteristic of call options is that they are time-wasting assets. They live a limited life. Every day, their value, vis-à-vis the stock they are convertible into, wastes away. Taking advantage of this time decay should be part of everyone's investment strategy because it is the most consistent aspect of making money in the stock market.

Selling call options also provides you with two additional benefits: it sets a price objective for your investment and it sets a time objective for your investment. In a word, we're talking about setting...GOALS. As the saying goes, "If you don't know where you're headed, you won't know when you get there." By selling options on stock that you buy, you'll know where you should be headed and you'll know how long it should take you to get there.

Okay, so the foundation of any profit strategy should be selling call options on stock that you buy. After you buy stock and sell call options, if the stock goes up, you profit. If the stock goes sideways, you profit. If the stock goes down a little (less than what you receive in return for selling the call options), you profit. And if the stock goes down more, at least you reduce your loss, plus there are alternatives that enable you to take additional measures that might even save you from taking that loss.


Aha!

Profits if the stock goes up. Profits if the stock goes sideways. Profits if the stock goes down a little. That means in more than 2 out of the 3 possible outcomes from your stock investment, YOU PROFIT. And remember, the only reason you invest is make a profit. So, play the game to win.

Now, with the odds of profitability on your side, I added a simple but reliable filtering process to choose stocks that are most likely to rally during the immediate future. Then, drawing on what I experienced on the trading floor, I added the most advantageous point at which to buy these stocks. Eventually, in 1986, my research and study resulted in a stock-option combination called The Simplespread Strategy - a refinement on the basic "covered call writing" concept. I presented the strategy in the book Dr. Simplespread, or How I Learned to Quit Losing and Started Taking Money Out of Wall Street

It was a fictionalized account of a seasoned investor who had tried every conceivable stock market strategy but still lost money. The storyline followed him as he searched through the canyons of Wall Street seeking out high-paid gurus to help him overcome his losses. But each guru was worse than the one before. Finally, a young shoeshine boy, learning of our hero's plight, told him of a little old man who worked in a step-down brownstone and taught people the simple way to make money in the stock market. Our investor found the man known as Dr. Simplespread and spent a couple days in his "war room." When he left, he no longer wondered about how the stock market worked. He now knew how to make stock market decisions, and he was ready to go home and start his new life as a successful investor.

Favorable reviews came in. Don Borneman, pension officer at Consolidated Natural Gas in Pittsburg, said at the time, "Damn good book." But there were two big obstacles for the public in implementing the Simplespread Strategy in the late 1980s: (1) high commission costs and (2) insufficient (and uneconomical) computing power to scan thousands of stocks for the right price patterns. We professionals on the trading floors had the access...but the public didn't. So the Simplespread sat and waited.

Fast forward to the Internet revolution. By the year 2000, online discount brokers had cut commissions down to where they barely mattered. And advances in computing power made scanning through 10,000 stocks faster than you could say gigahertz.

The other thing I learned from the 1986 experience was that wealth seekers wanted their investment education organized, stripped-down, and presented in the closest thing to an easy-to-follow manual. They didn't want a good story, they wanted a detailed roadmap.

The new and improved result as I return to the classroom:

"80 Rules For Taking 40% a Year Out of Wall Street"

80 Rules
300 pages (8 1/2" X 11" soft cover)
14 chapters
100 charts
28 illustrations
15 tables
12 graphs
4 forms

- A veritable manual of how to make money in Wall Street -

Chapters 1 to 6 of 80 Rules ready you psychologically for the steps
you will be implementing in Chapters 7 to 14.

Mental preparation first, then action.

Part I: The Basics

- Chapter 1 -

Basic Rules

Chapter 1 of 80 Rules begins with 15 basic concepts on how the stock market works. These are required reading if you are ever to have any chance to consistently profit in the stock market over the rest of your lifetime. Included in this chapter are "Overcome the 2 reasons you lose money," "Rotate or die," and "Understand the psychological drivers." It takes you from the basic covered call writing strategy through what makes the stock market tick. It finishes with "Learn one strategy," "Learn that strategy well," and "Learn what to do next."

- Chapter 2 -

Disregard...

Chapter 2 of 80 Rules teaches you to filter out the noise. Wall Street is filled with enough manure to fertilize all the rose bushes between the White House Rose Garden and Portland's International Rose Test Garden. Eight "Disregards," from the "news," to the financial underpinnings of securities analysis, to the most hallowed of Wall Street strategies, are dissected and discarded.


- Chapter 3 -

Habits

Chapter 3 of 80 Rules teaches 7 habits of successful investors. Five "do's" and 2 "don'ts."


- Chapter 4 -

Goals

Chapter 4 of 80 Rules explains how to set goals and why goals are the bedrock of any investment program.


- Chapter 5 -

Tools

Chapter 5 of 80 Rules lists 7 tools you will need in order to set up a successful investment program. Brokerage accounts, websites, publications, etc.


- Chapter 6 -

Study

Chapter 6 of 80 Rules outlines additional works to study in order to master the art of taking money out of Wall Street.


Part II: The Simplespread

- Chapter 7 -

Find the Right Stocks

Chapter 7 of 80 Rules begins The Simplespread Strategy of searching out the right stocks. By process of elimination, you will be led through the necessary steps to find those few stocks that best meet your stringent requirements.


- Chapter 8 -

Buy the Right Stocks at the Right Prices

Chapter 8 of 80 Rules takes you through the steps to locate the exact right price at which you should buy those right stocks.


- Chapter 9 -

Sell the Right Calls

Chapter 9 of 80 Rules explains what call options are, how they work, and how to choose the right call options to hedge those right stocks that you buy at the right price.


- Chapter 10 -

Enter into The Simplespread at the Right Time

Chapter 10 of 80 Rules determines the right time to buy The Simplespread according to regular fluctuations in the major averages.


- Chapter 11 -

Getting In

Chapter 11 of 80 Rules instructs you on how to get into The Simplespread. It includes the calculations that must be made, the restrictions you must put on the investment, and the entry of the order.


- Chapter 12 -

Chapter 12 of 80 Rules concerns itself with the managing of The Simplespread. It covers the business aspects of The Simplespread Strategy.


- Chapter 13 -

Getting Out

Chapter 13 of 80 Rules shows you how to get out of The Simplespread. This chapter summarizes each of the possible scenarios that can and will happen to the investment while you hold it. How you get out of an investment is much more important than how you get into an investment.


- Chapter 14 -

Wrapping it up

Chapter 14 of 80 Rules wraps up the foregoing content by summarizing the complete course on how to take money out of Wall Street. It emphasizes proof that it can be done.


Appendices

Forms, lists of charts

Bibliography

SUMMATION


By the time you come to the end of The Simplespread Strategy, you will have learned to go from the chaos of 10,000 stocks, to a limited number of prime candidates.

By the time you come to the end of The Simplespread Strategy, you will have learned to go from buying stocks at whatever price you hear about them, to one limited, opportunistic price area.

By the time you come to the end of The Simplespread Strategy, you will have learned to go from no better odds of profitability than barely 1 out of 3, to better than 2 out of 3, complete with firmly established time and price goals.

By the time you come to the end of The Simplespread Strategy, you will have learned to go from entering the market whenever you get the urge to buy, to a point in time when both the stock and the market are most likely to rally.

By the time you come to the end of The Simplespread Strategy, you will have learned to go from fear and trembling at the thought of having to make another stock market decision, to the comfort of a consistent methodology that you can understand and implement continuously for the rest of your life.

By the time you come to the end of The Simplespread Strategy, you will have learned to go from hit-and-miss panics and manias, to a professionally self-managed investment portfolio.

By the time you come to the end of The Simplespread Strategy, you will have learned to go from acting on emotion, to closing out positions in a rational, planned-out way, designed to take advantage of the best deal Wall Street ever gave you.

By the time you come to the end of The Simplespread Strategy, you will have learned to go from a state of confusion to the satisfaction of one, consistent, decision-making approach to the greatest wealth-making machine mankind has ever devised.

Simplespreading is not for most investors. We know that when everybody is using one strategy, that strategy will no longer be profitable. (Remember, a trade is based on a difference of opinion. You buy from someone who wants to sell, and you sell to someone who wants to buy.) But we rest assured that as always, a great majority of Wall Streeters will continue to bypass this "best deal" ever created, happily wasting their time searching for that long-shot fabulous growth stock which might soar 1000% or that unearthed bargain-basement value which no one else has found. We know that only a relatively few investors are really serious about growing their investment funds geometrically. We also know that only a relatively few investors are willing to spend the time and energy required to learn about this ageless technique that has stood the test of time. So, let others haphazardly chase the hare while you plod along on the road toward the goal of taking 40% a year out of Wall Street. Then see who ends up at the finish line first. Investing is a process, and it is the journey from Rule #1 to Rule #80 that gets you to your destination.

DO IT NOW

(1) Make the decision today to use the best strategy available to investors - The Simplespread Strategy™.
(2) Begin today to gain the confidence to make the right decisions at the right time...continuously.
(3) Learn Simplespreading today in order to save time through standardized decision making.
(4) Choose your method of how you wish to learn: Hard Copy Manual, CD, downloadable eBook, or Seminar.
(5) Resolve today to put the odds of profitability on your side and enjoy investing for the rest of your life.
 
  • Do it for the losses you've already suffered.
  • Do it for the profits you've already missed out on.
  • Do it for for your and your loved ones' future.
(6) Warning: Don't risk another dollar in the stock market without it.

Remember that each day, each week, each month, each year...somebody is
taking money out of Wall Street.
Why not you?

The Simplespread

"80 Rules for Taking 40% a Year Out of Wall Street"

 

Disclaimer

Simplespread.com (The Simplespread Strategy™) is an educational website, not a registered investment advisory service, and therefore does not give investment advice. Neither the information contained herein nor the opinions expressed throughout this website constitute a recommendation to purchase or sell any types of securities. References and illustrations using stocks and call options are for demonstration purposes only. Neither the author nor publisher have financial interest in any securities used for demonstration purposes. All information and data are taken from sources believed to be credible but accuracy cannot be guaranteed. Both stocks and options involve considerable financial risk and are not suitable for many investors. Any funds placed at risk can lose real money. Consult your financial consultant, advisor, broker, banker, lawyer, accountant, psychologist, or other professional before committing funds to any investment. As in any learning experience, confirm the facts and theories on your own prior to embarking upon any at-risk investment program.