Remember the Apprentice Challenge? That was over two years ago, when I was still working at the Rich Dad headquarters in Scottsdale, AZ.
You heard me right, I no longer work at the Rich Dad headquarters. As of 31 July, I am officially on my own, building my own business.
I still do some work for Rich Dad, but remotely, as a consultant.
I’ve also moved myself and my family about 120 miles north of Scottsdale to Flagstaff, AZ. It has been our dream to move here for 3-4 years now (ask anyone at Rich Dad and they’ll tell you how I’ve talked their ears off about this for a long time).
I want to be up front about how this all came about.
For the past six years I’ve managed the online presence (IT, web, RD Underground, etc) as well as the home office network for the Rich Dad Company. During that time I’ve received what I consider to be the most valuable education anyone could ever receive.
However, there was something I was missing. Sure, I could do the IT work and was extremely successful at building and fine tuning the systems, but there was a problem.
IT was not my passion.
As most of you know, I love making videos. Especially behind the scenes, fly on the wall-type videos of stuff no one else gets to see.
So, I decided to move out of IT and into media production. Well, my skill level and experience did not allow me to do that full time at Rich Dad.
Therefore, the decision was made for me to move on, and do things on my own. This is what I am calling ‘The REAL Apprentice Challenge.’
Robert and Kim were incredibly supportive and encouraging. It was not easy to leave the folks at Rich Dad that I had come to think of as my family.
However, I believe it was the best thing for me and the best thing for the company. We both needed to grow beyond our current context.
So, here is the deal. I have teamed up with a friend of mine who is an incredible entrepreneur, online marketing expert and teacher. He and I are going to be building a team of people dedicated to getting financial education into the hands of the people that are ready to learn.
If you’ve subscribed to this blog, then you will receive a separate email explaining the whole thing.
In the mean time, I am going to keep you all posted on my progress. Hopefully via video, like the first apprentice challenge. The only difference is, this one is for real.
Do or die.
See more here:
This Time It Is For Real
What I see today is that this Silver future contract what I plan to buy is today worth about 2 USD less than yesterday… and it basically means that if I had bought it yesterday (14th of August, as I have already 15th of August and now is 9:43 in the morning) I would have got today a new margin call… But I didn’t 
SLV finished yesterday at price 14.06 USD… silver futures prices show me that silver will go to 12.5 or near today as September 2008 futures contract shows price 12.525 USD per ounce.
My focus from investement side is definetely Silver, so keep on commenting what my real life actions and result are. But my day-to-day activity is building up a Rich Dad’s Franchise in Baltics.
Read more from the original source:
Disclipline pays off
One of the reasons why I write this thing here now, is to keep me accountable and help me have some discipline
So what’s the problem?
The problem is that I got margin call when Silver was somewhere around 14.44 USD. Now in couple of last days it has gone up to 14.86… So I decided not use anymore strategy called buy and pray or wait and lose :-p
But in the back of my head my Little Voice is still telling “Jump in” or “Get an new position, because otherwise you will miss out the opportunity.” etc.
So I decided that my strategy is:
- Buy when Silver price goes over 14-day moving average. And where I look this information is http://www.lbma.org.uk/ and based on that create my own graph.
- Sell when Silver price goes under 14-day moving average.
And I will change the strategy after Silver price will go over 200-day moving average.
In this point the strategy will be:
- Buy when Silver price goes over 200-day moving average. (This last happened 9/20/2007)
- Sell when Silver price goes under 200-day moving average. (This last happened 8/5/2008)
So in the end I will not have many buying/selling going on… and for selling probably I can put a Stop in place. I now found out how I could do that… I just need to try it out, how it works in real environment.
Last thing: I will continue with futures. The main thing why I like the futures is that gain or loss is accounted every day. So I can’t hide myself somewhere and “decide” in some point that now I’m going to be a long-term investor, when my actual idea was to be a short term speculator.
The second point is that when things will go as planned and I create some money out of this strategy I can start removing the money from investing account and move it into other deals.
Original post:
Keeping fingers away from Investment account
Yesterday I wrote “I got a Margin Call on Silver Future position“
This is not End of Game situation for me. The good thing is that I have taken into account Robert’s Big Idea that it’s useful to move from ‘E’ or ‘S’ to ‘B’ first and then to ‘I’.
In this point I’m talking about CASHFLOW Quadrant. The ones who don’t know it yet, I will give the meaning of letters… To understand it better get a book called CASHFLOW Quadrant from Robert T. Kiyosaki and read it.
So I’m at the moment for various reasons in all of four quadrants.
In ‘E’ I’m just for one reason – my company hired me with minimum possible salary so I get to go to the doctors for free, at least that’s the idea. It works with the family doctor but not with specialists as these guys have long waiting lists but it’s possible to pay yourself and get the help needed same or next day
I’m mainly in ‘S’ right now. And focusing of building up the Rich Dad Franchise here in Estonia, Latvia and Lithuania.
And I have some things going on I would call ‘B’ , at least from idea side. I have put up some IT systems where I collect monthly service fee, but as nothing happens mostly – it means these things work without me, then I don’t have spend time other than writing Invoice once a month.
OK, in some rare case I have to act really fast and fix or update something.
And the ‘I’ is left. Here I’m with my learning how to invest… trying out things… like this Silver Future contract. Now I know from my experience what is Margin Call
So the good thing is that nothing bad happens with me after this last deal… I still have money for living expenses and food and all that… so I will put some money which comes in every month to my investment account and jump in again This time being smarter again… and it’s all pre-tax money.
Now I will take into account more also market movements with my new strategy. Probably get burned again, but will learn faster and more
Read the original:
Creating a new Strategy for benefiting Silver futures
When I first talked about “Margin Call” and explained what it means to my girlfriend she understood that someone will call me say something like this: “Peeter, thank you for your money. You don’t have it anymore.”
The real truth is that no one calls you – just there is no asset anymore and no money also…
I have had two earlier posts on this:
So what happened?
After writing “Background story about buying Silver” in some moment I changed to Silver future from SLV position. First I bought one Silver Mini-Future contract which was approximately for same quantity of Silver than I had in SLV before, so for 2500 ounces. Then it felt good and I thought – let’s take some more risk and I changed to one Silver Future contract, postion for 5000 ounces.
So bacically to make it simple, I put 20 000 USD to my investing account and did these earlier mentioned deals. Today just some moments ago I have 4054,69 USD on my account and no position in anything.
Couple of thing I didn’t take into account:
- Silver may go down in price. OK, I read a lot of articles about the price in future… and all those suggested rather higher prices… I even read a realistic article that the price should stay between 15 and 30 USD and hoped for 30 :-p
As long as Silver stayed above 15 USD I had enough funds to cover this position in my account. Today it went under… at least I see SLV price now 14,44 USD. - I didn’t take into account that the Exchange NYMEX will lover the Margin needed… I went in knowing that it is 8000 USD and I thought that when my position is worth less it gets sold automatically. They lowered the Margin needed to 5000 USD and as I found out now it got sold automatically when I had 4000 USD left in my account. Good that I didn’t had any other assets on that account
- I had no stop order on place… accually I even don’t know how to put this into place :-/
Now I can say this was a costly wake-up call. I better start learning more…
At this point I have the plan to add some funds to this account and buy a new position in Silver Futures when Silver price will go over 14-day moving average or 200-day moving average whichever comes first. So I will at least have some kind of other strategy than buy and pray (Just kidding!).
At this moment I’m looking this information at http://www.kitco.com/charts/techcharts_silver.html
So anyone of you knows where I could find real time chart on it, I would appreciate.
See the original post here:
I got a Margin Call on Silver Future position
