Welcome to Wealth Builder

Welcome to my Wealth Builder section. In this section I’m going to teach you how to build wealth. This will not be the traditional wealth building strategy: don’t spend more than you make, reduce debt, invest 15% of your income, pay off your home early, earn more, emergency fund, buy cheaper cars, work hard now, automate your savings, etc, etc, etc. yada, yada, yada!

These are all great, well known, wealth building ideas. To learn about any of these subjects you just have to google “how to build wealth.” Many people got rich with all of the above, but I take a different path. I take a path that’s more enjoyable to me. I do not believe in buying a cheaper car or house. I believe, if you cannot afford something, make more money. This is America! Find a way to make more money, Period!

I do not believe in just working harder. You can only work so hard, and make so much money with labor. I believe in making money and have it work for you! Make money, invest money, have money work for you. To me this is pretty simple. I don’t mean simple to do, I mean a simple concept. And if you educate yourself it’s pretty simple to do.

Above I listed all the ideas you will find if you google “how to build wealth.” They’re all great traditional ideas. Many people got very comfortable practicing these ideas. It’s just not my path. My path is to make money trading and invest the profits into longer term holdings. I completely understand everyone does not have the time to be a trader. If not, take some of the money you work for and invest into a portfolio of long term holdings. Today’s trading platforms are basically commission free. Plus you can buy as much, or as little as you want. You can find a stock you love and buy 10 shares at a time. Everything is really set up to give you financial freedom. You can do something as simple as buying 1 or 2 shares of Microsoft once a week during your lunch hour.

This site, Main Street beats Wall Street, teaches you how to trade for a profit. Now, this site also has a new section called Wealth Builder. If you can trade for profit and invest in longer term positions, great! If not, you must find a way to save money and have that money work for you with the principles outlined in this section. If you’re only going to work, and live paycheck to paycheck, you will never get ahead in life and accomplish financial freedom. The sooner you get started the sooner you will be living the life you desire.

If you didn’t already, please take a look at my page 2020 Year to Date (YTD) Report. This is a post I made of my results from Jan 1, 2020 to Dec 1, 2020, 11 months. The profits you see in this report, and past reports, are the profits I used to buy some of the positions in my portfolios you will be reading about in this section. And all future positions will come from my trading profits which will keep my money working for me.

If you’re going to trade options to make money I ask you not to mimic my trades. I want to teach you how to investigate stocks to find the trades that fit into your philosophies, strategies and risk tolerance. You can mimic my trades, and you’d probably make money, but I won’t be here forever. You must learn to do it yourself. Learn how to find the stocks and options that fit into YOUR comfort zone.

Long Term Positions – You Must Have Patience 

Since it’s inception Main Street beats Wall Street I have been teaching options trading. I do have some longer term positions but basically, with Main Street beats Wall Street, I’m a “trader”as opposed to an “investor.” My new Wealth Builder section will change that. I will now have my longer term positions be part of Main Street beats Wall Street.

I added Wealth Builder to Main Street beats Wall Street because not everyone has the time to be a trader. Wealth Builder will help the ones who want to be involved in the stock market but do not have the time, or desire, to be a trader.

Let’s define the terms trader and investor.

A trader measures their returns in weeks or months. Please read my page Rate of Return. Traders look for short-term fluctuations. They seek to capitalize on them. Trader’s typical trading vehicles are options, small cap and midcap stocks, hypergrowth stocks, and other high-beta equities. Their main tool is Technical Analysis

Investors, on the other hand, measure their returns in years, or decades, and ignore short-term fluctuations. Typical investment selections include blue chip stocks, index funds and high-grade bonds. Their main tool is Fundamental Analysis.

The two groups are not mutually exclusive, of course. As you know, I feel the best approach is to be a trader and use the profits to be an investor with long term investments.

My Wealth Builder adds the “investor” in me to Main Street beats Wall Street. Wealth Builder will have 4 portfolios. The 5 Star Trading Portfolio, the Pillar of Strength Portfolio, the Double Dipping Portfolio and the Stock Alternative Portfolio. All 4 will be explained in the pages to follow. The first 3 portfolios will have stock positions. These positions would fit into the investor’s “typical investment selections.” The Stock Alternative Portfolio will have only LEAPS option positions. The LEAPS positions will most likely be with stocks that are held in the 5 Star Portfolio and the Pillar of Strength Portfolio. I probably won’t buy LEAPS on my high dividend stocks. Traditionally they’re lower moving stocks, and options do not pay dividends.

I will be holding stock through the peaks and valleys. No stock moves straight up. Watching stock positions through the lows takes patiences and tolerance. You must rely, and believe-in, the homework that has been done by you and others you follow. Stocks will go up and down with the market. As the stock goes up and down we want it to hit higher lows and higher highs. If I pick a stock and it doesn’t move the way I want, which will happen, and it hits my Trailing Stop Loss Order, the stock will be sold and I move on. These portfolios will have rules and I’ll stick to them. All my “Buy,” “Hold” and “Sell” ratings will be listed with the stocks. You will learn more about the ratings and the Trailing Stop Loss Orders as you read on.

Welcome to Wealth Builder, now let’s get to work!