Okay, now we're going to go through the overview. Basically, you want to start with a discount broker because you want to keep your commissions to a minimum. You can use each trade or TD Ameritrade, Schwab, fidelity, whatever. And you want to buy the bottom five or the dogs of the Dow. I basically go to that website that I showed you earlier screen for them usually once a month, sometimes a couple times a month. And it should I eat this strategy should only take about 10 minutes a month to do really.

If you can, if you have enough money, and you're familiar with option trading, you feel comfortable doing it. Sell puts, pick up those bottom five if possible. That way you get it a little bit cheaper than the list price. And if the stock gets put to you, you can own the stock at a discount if it doesn't get put to you click to premium and do well. If you can use Put, if you don't want to, that's fine, you can just stick with by find the bottom slide, I usually buy the bottom five first, then if I have access to funds, I just do the puts. The rationale is that I don't want to miss out any of the moves on the bottom five.

Because if you do selling puts only if the socks suddenly move up, you'll get to keep the put premium but you miss out on that move. So you can actually make more money long term despite the bottom five, but I like doing the bottom five and then any excess funds, doing put selling puts, if you can. Why you're sitting on those stocks waiting for the move, you're capturing the dividend. And whenever possible, I like through the discount broker doing a drip dividend reinvestment program. It should be free through your discount broker. Always check with them make sure you're not getting charged any Commission's for dividend reinvesting once the stock moves off that bottom list and the bottom list means Bottom 10 lows, usually at a profit anywhere from 15 to 20%.

And I've seen stocks move anywhere from a couple months up to a year, sometimes longer. And when they do move off, that's when you can explore selling covered calls. I like to sell coaching calls, generating one and a half to 3% per month premium on a stock has already moved up. If it has not reached this one and a half to 3% premium, I don't bother selling the call, because I'm already at profit here. And that is don't want to give it away and lose any additional premium. not worthwhile.

So when it moves out to lists, you have an option you can do cover calls. Or you can just sell the stock outright, which is fine. Either way, it's fine. When I do my put strategy selling puts when they're on the bottom of the list, I like to see a two to 3% premium to make it worthwhile. It's less than that I don't bother Am I shortcut method to figure out these numbers is just to look at the strike price either at the money, which is if the stocks trading at 30, or 30.2, or whatever, I look at the $30 calls as the $30 puts, and that's at the money. And I to see if these numbers come up.

And then I look at out of the money or it's slightly above four calls, slightly below. Actually the other way around. It's slightly below four, or slightly above for puts, and slightly below for calls. The rationale here is if the stock is taken away from me, I'm going to make this amount of profit. If I'm sold the put and put stocks actually put to me. I make this amount of profit which of course lowers my cost basis in the stock.

And in the examples I gave, you can use a calculator, basically divide The premium price into the strike price. And that gives you an approximate percentage, of course, multiplied by 100. And that lets you know if you're in this target area, I always do 30 day options or less. I don't do longer than 30 days because you just signed up your money, or either they take away the stock from you for a covered call, or they put the stock to you. Using the put strategy when it comes close to expiration, usually the last few days, you'll see the option price dramatically move either for or against you. If it drops quite a bit, I can buy it back and make about 80% profit.

I will do that. And if it doesn't come close to this or it's a negative number where it's going to cost me money. Then I just ignore it and be happy with the deal I made because I know I already locked in my mind. profit. Of course, we talked about risk earlier 510 percent rule, never risk five or 10% in any particular stock or stock trading strategy. With options, I usually do less than that.

Two 3% on options, because options can move against you fast, and you can lose money fast. So I try to limit it by using different rules. I also talked about in the beginning of the course about paper trading, especially with options and I think that's a good rule. Always pay per trade first until you're familiar with the techniques presented to you feel comfortable. One thing about option plays in dogs of the Dow strategy, you're basically working on value stocks. So the percentages that you make are very small comparison to some non dog stocks, especially Currently, the technology Do stocks such as Apple, or Facebook or Google, those Scott stocks you can actually make a tremendously lot more money.

But on the other hand, stress levels are much, much, much higher, because those options can move quickly and against you and you can lose money quick. So I like doing it strictly on value stocks, dividend paying stocks, I'm stuck with the stock for a period of time if it goes under, I can collect those dividends, why wait for it to come back. Once it moves into a profit zone, I can choose to sell or do a cover call. And if I'm looking at a stock down the road, the purchase especially a good dividend player, like selling puts, if I make a little premium, why wait if I get put the stock I usually get a discount and just repeat, capture the dividends and wait for it to move up and sell the call. Of course with options when it comes time to expire, check a day or two out See if you can buy it back at 80%.

And that's a good deal. If not just let it expire and move on to the next stock. In life, you want to minimize risk. So take your profits from the strategies that we gave you here and invest in the couch potato method. I mean, outside of what we're doing here, you can put money into growth and value in the us grow stocks and value stocks by buying big sector ETFs. Usually through Vanguard Vanguard or Schwab, or TD Ameritrade index funds, a lot of them are practically free now.

Same with ETFs. Very low maintenance fees. When you buy an ETF, you pay a commission charge. Some of them are commission free now especially at TD Ameritrade. The investment to end Funds you can, which is fine. Usually there's no cost to invest and then the transaction fees or the Commission's and maintenance fees are very, very low.

So I like to split between growth and value you never know what's in style for the upcoming year. For couch potato method is for growth and value sectors, you just buy the large indexes the large ETFs split it 5050 at the end of the year, if one is bigger than the other you rebalanced by selling off the higher one and reinvesting the lower one. So for example, growth was the big winner. In 2017. You would sell off your growth to a 5050 level and invest the difference in value. value may be the better one next year if it is you sell that off and put into growth.

So that way you kind of play both sides of the coin. You also want anywhere from 10 to 30% of portfolio in foreign markets, non us and again using index funds. And ETFs just buying the whole markets and investor profits in there as well. foreign markets the last few years surprisingly, last year 2017 actually outperform our market. So with foreign markets, I don't like to do tiny little sectors, for example, Bulgaria or Romania or South America, it's too volatile. I would rather just buy the whole area like Latin America or Europe, or just international in general.

The main thing is don't duplicate us always get it non US foreign markets 10 to 20% your portfolio should also go into alternatives, closing funds, which we talked about, rates which we talked about, you can also look at preferred, non traded reads, currency commodity so on and so forth. On these I like to usually buy the funds or the ETFs for three weeks, only because it's easier, less expands and you cover the whole sector for closed end funds. A really good site. If you find a close in front of interest, or even a read, which I gave you is down below we're going to talk about is Seeking Alpha, you can actually put the stock symbols in and get an idea of what's in it. If you use TD Ameritrade or some of the other discount brokers, usually, if you put in the symbol, they'll tell you the top 10 Holdings, which I always like to see.

So for example, if I was looking at closing funds, and I know the Fang stocks had been out of control, the Facebook Apple so on and so forth. I probably want to avoid investing in those because I think they're gonna fall down the road so I would rather pick up closing fun and some beaten up sector. That's having a hard, tough time that I know is starting to turn around coming back reads have been under a lot of pressure for years. And they've had a tough beginning this year. So they're kind of an out of favor stock. So long term, I would like to pick up either individual reads, or just the best and a refund in general.

So 10 to 20%, and your stock alternatives 10 to 30% of your fortunes, and then your balance going to the US where he's tried to split 5050 and growth in value. And then as this entire pool here you still have five to 10% in the dogs of the Dow strategy, which we talked about with minimal option plays. When in doubt, you can always go Vanguard, they have us total stock market index and a total bond index. I like these long term they don't move much, but they don't decline much. So you ever get concerned about the market. You think market Go down substantially.

Or you're worried about losing money especially close to retirement, you may just want to go ahead and sell your shares off and put the balance in a mix of total stock and total bond. And we've talked about this a little bit, where of course, depending on your age of retirement, how much risk in the stock market you want. You could have 70% in stocks, 30% in bonds, down at 50% of stocks, 50% in bonds. And again, the stocks and bonds. Huge funds don't move much, but they're very safe and stable.