3 Things You Must Have to Make Lots of Money Fast

Where ever you are presently in your life you can begin to make large   amounts of money very fast if you understand a few simple principles.  Despite what anyone may tell you these principles of generating money fast do work.

These principles are not difficult but in order to understand them you must process them.  You must take the time to give them some thought, until the thought becomes a part of your very being.  

How to make money fast is one of the hot topics on everyone’s mind.  Most people will tell you that claims of making fast money is a hokes.  Those are the very people who believe that only hard work and struggle can create money.  However despite the hard work, the concept of fast money is still not part of the equation.  After all if you are working very hard you are unlikely to be making the sort of fast money that you would dream of.

I can tell you from first hand experience that fast money does not come through hard work.  If you are marketing your business or interested in accumulating more money struggling will only kill your changes of getting money in a fast and easily way.

     --The First Step--

The first think you need in order to make fast money is to have a clear goal.  How much do you want?  You would be so surprise at how many people want more money but don’t have a clear idea as to how much they want.

Without a clear goal your desire is just a wish, it is not concrete.  Be specific about how much money you want and by when you would like to have it.

     --The Second Step—

The very next step is to take inspired action.  Inspired action comes from the universe as a nudge.  It’s the perfect idea, job or business that will help you in getting your goal accomplished.  

It makes no sense trying to do something that your neighbor or your coworker tried.  What is an ideal opportunity to make fast money for them may not be ideal for you.  Besides your goals are unique and the opportunities that are rightfully aligned for you are rightfully suited for you to reach your goal in the time that you desire.

     --The Third Step—

The third most powerful step is to have a clear and bright vision of your goal.  This is where most people fail.  Most people get caught up in fear and worry that their goal will not be able to materialize and spend lots of wasted time holding back on their actions.

How many times have you been offered a great idea which you may have promised to do but allowed your fears to get in the way?

You must be able to hold your vision in such a way as to feed it with your own personal powerful intention that your vision will materializes money a lot faster than usual.

Many people who understand the power of holding a clear vision have gone on to make money very fast again and again.  Those are the ones who deeply understood the precise way.  With a little time and your deep desire you can literally suck money to you faster.

Over the years I can honestly say that I have tested all these theories and without fail they work in generating money faster than if I did not practice these methods.

"Double Your eBay Sales In 30 Days!"

First, and as important to your success as anything you learn here, is clearly understanding how eBay users find things to spend their money on.

No matter what type of buyer they are, no matter where they come from, they all use the same tool to find auction ads; 

"They use the search bar to type in general terms..!"

Very rarely do buyers check the "Search Title and Description" checkbox  and start browsing the more specific results. Heck; the checkbox isn't even an option on the front page of eBay, you actually have to do an "Advanced Search" to even have that option. This just confirms the importance of your title keywords. 

Some do browse categories rather than search, but we're mainly concerned with general majorities here, not exceptions to the rule. 

In case you're unaware, this means that most searches are ONLY CHECKING YOUR TITLE, not the words in the description area of your ad!!! 

Experience tells me that, since you now know this, you are actually way ahead of 70% of the other eBay sellers out there; and that's a very conservative estimate..!

Now that you have a clear understanding of the importance of your title keywords, here's a priority list for precisely picking the right ones for each of your ads: 

Take these rules literally, but understand that each of these will not apply to every ad that you run. You have a maximum of 55 characters allowed for your title and just try your best to achieve as many of these as possible in this limited space.

1. Obvious keywords that are specific to the product you're selling and make sure that they are spelled correctly.

2. One or Two misspellings of the obvious keywords from the last rule. (Google says that 33% of all searches are misspelled) ...CATCH THAT? One Third! Don't Forget This Part.

3. One or Two general eBay keywords such as "nr", "n/r", "no reserve", "free shipping", or "lot". These are keywords that a lot of pro buyers search for.

4. Other general keywords like "new", "free", "excellent", "pc", "usb", "dvd", "wholesale", or "supplies". You can only use ones that are relevant to the product you're selling, but these are very powerful. 

Now, take these rules and create a list on a piece of paper each time you're about to list an ad. Usually the list is way too big to fit into the title. Once your list is done, start narrowing down the list using the priority structure that I just gave you until they do fit into the 55 character limit.

If you have more than one of the item to sell and intend to list multiple copies of your ad, be certain to take the time to create different titles for each one!!! If you don't, and you just use the same title for each copy; you're just wasting money. Multiple versions of the same ad with different titles for each can really increase your traffic.

An Analysis Of Overstock.com (OSTK)

Why is a value investor writing about an unprofitable internet company? Because value investing is about finding dollars that trade for fifty cents; with a market cap of less than 75% of sales, Overstock.com (OSTK) looks like it may be exactly that. 

But isn’t it too risky?

The greatest risk in any investment is the risk of overpaying. So, the real question is: what is Overstock worth? I think it’s worth at least $1.5 billion. With Overstock’s market cap currently sitting around $500 million, my valuation certainly looks far fetched. But, there’s only one way to know for sure. Let’s take apart my argument piece by piece, and see if any of my assumptions are unreasonable.

First Assumption: Over the next five years, Overstock will neither generate truly free cash flow nor consume cash. In other words, its free cash flow margin will average 0%. Cash generation in some years will exactly offset cash consumption in other years. Obviously, this assumption is unreasonable, because there is almost no chance the cash flows will exactly offset. 

That’s not a problem if it turns out Overstock does generate some free cash flow over the next five years. In that case, my assumption simply errs on the side of caution. If, however, it turns out Overstock actually consumes cash over the next five years, there is a problem – possibly a very big problem. So, which scenario is more likely? 

Overstock’s revenues are growing quickly. Gross margins look solid at 13.3% in 2004 and 14.9% over the last twelve months. Overstock’s unprofitability is the result of its selling, general, and administrative expenses (SG&A) which have been growing exponentially. Will these expenses continue to grow? Yes, but not as fast as revenues. Over the last twelve months, Overstock’s spending on cap ex has been 5.6% of sales. That number is an aberration. In the long run, spending on cap ex should not exceed 3% of sales. Considering the business Overstock is in and the expected sales growth, the company will, more likely than not, generate some free cash flow over the next five years. Therefore, the assumption that Overstock will be cash flow neutral over the next five years is not overly optimistic.

Second Assumption: Over the next five years, Overstock’s sales will grow by 15% annually. Is this an unreasonable assumption? Again, I don’t think it is. Very few industries are expected to grow as fast as eCommerce. Overstock’s revenue growth in 2003 and 2004 was over 100%. In the past year, that growth has slowed. However, it is still closer to 50% than it is to 15%. Overstock isn’t in a cyclical business. So, there is no reason to believe current sales are abnormally high. 

Also, all that spending on advertising is increasing consumers’ awareness of Overstock. A review of Overstock’s traffic data shows it has not only been gaining more visitors; it has also been climbing the ranks of the most popular web sites. While it is a long, long way from the Amazons, Yahoos, and eBays of the world (and will never reach those heights) Overstock is becoming a well known internet destination. This fact was most clearly evident in the weeks leading up to Christmas. Shoppers who visited Overstock during the holiday season obviously know it exists, and may very well return at some other point in the year. Analysts are predicting very high growth rates for Overstock; however, they are also recommending you sell the stock. I don’t put any weight in their estimates. But, for the other reasons given, I believe the assumption that Overstock will grow sales at 15% a year for the next five years is not unreasonable.

Third Assumption: Six to ten years from today, Overstock will have a free cash flow margin of 3%. Ten years from today, Overstock’s free cash flow margin will rise to 4% and remain at that level. Now, of all the assumptions I’ve made, this one is the most questionable. Sure, Amazon has that kind of free cash flow margin, but Overstock isn’t Amazon, and it never will be Amazon. Overstock’s gross margins are less than Amazon’s. In fact, Overstock’s gross margins are less than Wal – Mart’s. However, Overstock’s fixed costs will eat up a much smaller portion of its sales than is the case over at Wal - Mart. 

If you compare Overstock to other online retailers, you will see that if Overstock does experience strong sales growth, a 3% free cash flow margin six years from now is not unreasonable. I assumed Overstock’s sustainable free cash flow margin will be 4%. There’s a case to be made that 4% is too high. I won’t make that case, because I don’t believe in it. Remember, that 4% number comes ten years out. That gives Overstock plenty of time to grow sales and thus reduce SG&A as a percentage of sales. 

Fourth Assumption: Six to ten years from today, Overstock will be growing sales by 12% a year; eleven to fifteen years from today, Overstock will be growing sales by 8% a year; thereafter, Overstock will grow sales by 4% a year. Let’s see what this really means. According to these assumptions, Overstock’s sales will be as follows:

Today: $707 million

2011: $1.59 billion

2016: $2.71 billion

2021: $3.83 billion

2026: $4.66 billion

2031: $5.67 billion

2036: $6.90 billion

Seven billion dollars is not an unreasonable target – if you have thirty years to achieve it. To put that figure in perspective, Amazon.com currently has sales of about $8 billion. So, even after thirty years, these assumptions don’t lead to Overstock reaching the same size as today’s Amazon. Don’t forget these numbers assume some inflation. For instance, if inflation averages 3% a year over the next thirty years, Overstock’s projected $6.90 billion in sales only translates to $2.84 billion in today’s dollars. So, these assumptions only lead to a fourfold increase in Overstock’s real sales over a period of thirty years. I think that’s pretty reasonable. 

If you take these four assumptions together, you get a value of $1.5 billion for Overstock. Today, Mr. Market is offering it for $500 million – that’s why I’m writing about an unprofitable internet company.

3 Steps To Profitable Stock Picking

Stock picking is a very complicated process and investors have different approaches. However, it is wise to follow general steps to minimize the risk of the investments. This article will outline these basic steps for picking high performance stocks. 

Step 1. Decide on the time frame and the general strategy of the investment. This step is very important because it will dictate the type of stocks you buy. 

Suppose you decide to be a long term investor, you would want to find stocks that have sustainable competitive advantages along with stable growth. The key for finding these stocks is by looking at the historical performance of each stock over the past decades and do a simple business S.W.O.T. (Strength-weakness-opportunity-threat) analysis on the company. 

If you decide to be a short term investor, you would like to adhere to one of the following strategies: 

a. Momentum Trading. This strategy is to look for stocks that increase in both price and volume over the recent past. Most technical analyses support this trading strategy. My advice on this strategy is to look for stocks that have demonstrated stable and smooth rises in their prices. The idea is that when the stocks are not volatile, you can simply ride the up-trend until the trend breaks. 

b. Contrarian Strategy. This strategy is to look for over-reactions in the stock market. Researches show that stock market is not always efficient, which means prices do not always accurately represent the values of the stocks. When a company announces a bad news, people panic and price often drops below the stock's fair value. To decide whether a stock over-reacted to a news, you should look at the possibility of recovery from the impact of the bad news. For example, if the stock drops 20% after the company loses a legal case that has no permanent damage to the business's brand and product, you can be confident that the market over-reacted. My advice on this strategy is to find a list of stocks that have recent drops in prices, analyze the potential for a reversal (through candlestick analysis). If the stocks demonstrate candlestick reversal patterns, I will go through the recent news to analyze the causes of the recent price drops to determine the existence of over-sold opportunities. 

Step 2. Conduct researches that give you a selection of stocks that is consistent to your investment time frame and strategy. There are numerous stock screeners on the web that can help you find stocks according to your needs. 

Step 3. Once you have a list of stocks to buy, you would need to diversify them in a way that gives the greatest reward/risk ratio. One way to do this is conduct a Markowitz analysis for your portfolio. The analysis will give you the proportions of money you should allocate to each stock. This step is crucial because diversification is one of the free-lunches in the investment world. 

These three steps should get you started in your quest to consistently make money in the stock market. They will deepen your knowledge about the financial markets, and would provide a sense of confidence that helps you to make better trading decisions.