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…found this interesting article in Singapore’s ‘Today’ newspaper last week. It’s written from a Singaporean perspective, but the validity is truely global.
It goes in the same direction as “Retire young, retire rich”; that it’s best to not (only) have a salary, but let your (and other people’s) money work for you - thus earning rent, interest, dividends and having value appreciation of your assets as ‘other’ streams of income.
In this way you can reach true financial freedom and independance from any employer or nasty boss. This concept is especially important for us Nomads, no? 
Having Only One Income Stream Is Not Enough
by Valerie Law valerie@newstoday.com.sg
Dr Clemen Chiang is the chief executive of Freely Business School, the first private school in Singapore to offer an options diploma course. Dr Chiang shares about ways to create multiple income streams.
Why should a person have multiple streams of income and how popular is this concept in Singapore and Asia?
I believe it is a very popular concept. In a typical household, fathers were the sole bread-winners in the past. Nowadays, both the husband and wife work.
Sometimes, even the combined income is still not sufficient. Having multiple income streams is critical in today’s landscape because of uncertainties in the world. In 2000, there was the dotcom crash; in 2001 the terrorist attacks; then in 2003, the Sars crisis hit Singapore’s economy very hard.
Today, there are also job uncertainties due to China’s and India’s emergence.
Creating a secondary source of income does not necessarily require you to migrate. You can be mobile yet remain in the same country - that is the essence of creating multiple sources of income.
Why do you believe in using options trading to create the first alternative source of income?
It is a question of seed capital - how much money you have today. Say your starting capital is small - less than $10,000, there are not much things you can do to build a business.
So you shift your focus to investment instruments by asking: “Which instruments will grow the seed capital from a small sum to a big sum?”
If your capital is small, you should focus on one instrument first - options. In the United States, there are 3,000 option-able stocks out of 30,000 tradable stocks, and these options come from the very best companies.
Options allow you to trade when the market moves up, down or sideways.
When you reach your target, you may then take that lump sum cash to invest in real estate in Singapore as another source of income.
How feasible is it for an employed adult to have multiple sources of income in Singapore, given that today’s jobs may require long hours?
The employee must know how to mange his/her time, and passion to create multiple sources of income. Nobody is stopping you from investing your own money.
Most individuals have the traditional mindset towards income generation, thinking you must appear physically at a place at fixed hours. For me, earning an alternative source of income means being mobile, keeping in touch with the latest products and technology, and becoming a self directed investor.
For investing and trading, you do not have to appear physically somewhere.
You can make money using the Internet, and you do not need to face suppliers or competitors. You just need to face yourself.
So how much time do we need to get to half a million dollars?
There are three variables:
1. How much seed capital do you have?
2. What is the lump sum amount you wish to have?
3. What is the performance target for your capital each month?
Let us use an example based on the principle of compound interest:
Starting with US$5,000 ($7,900) and earning 10 per cent return per month on your seed capital.
It will take 58 months or less than five years to reach a million dollars.
But you must be committed - it is a marathon. You may need to commit 30 minutes per night at first, and later choose to become full time traders.
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bkit walang adobo,?he.he Filipino is the best….
Let get it straight, Clemen Chiang, doesn’t trade options to become rich, he make his million dollars by conducting training seminars, his money comes from the students. Not from his trading account.
So how can he be qualified to claimed that by using his strategies, you can become financially free from $5K by trading options?
Unless he can show me his trading account every year to prove that he walks his talk.
If you go to http://www.freely.com website, you see many “freely” motto, but I tell you, “To become a Millionaire” is just a marketing strategy, just like selling fake medicine on the street.
So attending any trading seminars is worse than paying tax to the government, you not only pay a lot of your hard earned money to the trainer, but also to the market !!!
The “Telling Other People How to Make Money” business is the biggest scam going on the Internet. Most investment wizards would love to earn a 10 percent monthly return, but can’t.
[...] In Real Estate it’s all about location, location, location. Not here! After all I want to live there for a longer time, without ransacking my life savings, plundering my retirement money or working my *ss off in the tourist industry. We are talking Nomadic Lifestyle, here. Streams of income in hard currency, expenses in weak ones, right? [...]
I too am suspicious. I have friends in the City who claim to be making 20% returns in emerging markets such as Brazil, but they live and breathe finance, and yet they’re not millionaires. To trade options without doing thorough research would be suicide… I’ll play it safe with my 6% savings account return, thanks :p
There is definitely money to made in options. But, it requires a lot of risk and hard work. The owner of this blog makes some money from this blog. Like him many bloggers and internet marketers make money using Google Adsense and affiliate marketing methods. Right now, I have a link to to a great site that I belong to that has helped my get closer to my dream of exiting the rat race.
well.. juz wanted to say that after paying a good month’s salary for something i thought would change my life, it was not such! well.. i must give credit to the fact that it was a nice introduction to options trading but those of us who are willing to be a bit more hardworking, a lot of the information can be found a click away.
anyway, the information was good but i did not like the fact that students were psyched into thinking that blind gratitude had to be paid to dr. clemen in order for them to make money. those who challenged him often met with an almighty reply “U DID NOT FOLLOW THE RULE” crap. Then for those who did not follow his sacred rules and made money, he would not hesitate to publish it as his success of teaching.
finally, it is my firm believe that he does not trade options to make money. I had challenged him to share his trades once and all that was returned was hoo haa on not giving up.
i am writing this to help create some feedback of the matter and so that those who want to fall prey can do so with a bit more awareness.
you could invest $5k on a blog or a small network of blogs and grow that to $5k a month in 2-3 years. by then you should have enough seed capital to invest in bigger things. sound simpler than the reality i know, but it’s still very much do-able considering how young the internet is and how many information hungry folks are out there!
I really made a fortune in options. They are a well-hidden secret to infinite wealth.
The trick, of course, is to charge for every trade. Make the market. Then let the fools in. It helps of course that I love to see them lose their shirts.
Mwa HA HA HA HA HA HA
>
i agree money can be made in options as there it is a powerful tool.
Nonetheless… Freely’s way of earnings releases and then betting on market direction is a big load of crap. Furthermore, their 7000% return on this is probably a fluke in a 500 stocks. this is called the “Freely Most Powerful Strategy” cheating scam.
As for “Freely Powerful” Cheating Scam, it is said that each time a stock gaps up or down… there will be another gap up or down as the novices start coming in… those more experienced traders know again this is a load of CRAP.
Lastly, “Freely Dynamic” Cheating Scam… or i should say.. increase your loss strategy…. says that a properly selected stock will continue to sink if it gaps down for a 45 degree up up and away chart…. all i have to say is HA HA HA…. sometimes it stays flat and you lose money!
Hi Freely Ex-Student :
I can sympathize with your frustrations. Been there - done that.
Options are usually high before earnings announcement, that’s 1 obstacle to overcome. Volatility collapse after earnings announcement would be the next one. The crucial obstacle would be anticipating the direction correctly. I admit it’s difficult to predict the direction correctly. I’ve tested with different signals, comprising technical & fundamentals aspect, but they were not consistent in determining the direction of gapping every time. The magnitude of the gapping is also another concern. gapped too little even in the correct direction cannot rescue the situation.
I don’t trade frequently with this technique nowadays. But I would wager a little if I assessed the premium to be worthwhile going in & the signals are leaning towards a probable direction of gapping.
In my opinion, there is no free lunch in the world. This also apply to option market, hahaha u need to put effort in order to make money.
For me, option is just a business that dealing with volatility (to be exact is probability). I am absolutely agree to Tony, in order to protect the well being of option sellers, the option is already priced with higher premium before the earning announcement, Hence, freely’s method doesnt seems to work well in most of the cases.
However, human mind is prone to be tempted by “suvivorship bias”. Thus, This type of speakers always making use of human weakness to earn their “million dollar”. HAHAHA