Meet Bob Eldridge

Most people associate the word entrepreneur with risk. But the opposite is true. If you ask Bob if he takes risks his answer is always an emphatic, "No!" You see, a true entrepreneur, like Bob, looks for opportunity first. They add creativity and innovation to reduce risk. Then they put their plan into action.

Back when this all started, Bob was making a decent living working for the Federal Aviation Agency. He, and his family were living on the $35,000 that was left after taxes and benefit deductions from his $70,000 yearly salary. Life was good, but this surely wasn't the American dream.

Bob yearned for more. Buying or starting a business had significant drawbacks. Business start up capital was hard to find. Multi-level marketing wasn't an option either. He found that finding the right people and keeping them motivated was as easy as "herding a yard full of cats". There were too many things out of his control.

So Bob did what he's always done. He sat down and put a list of criteria down on paper. This time he evaluated every possible element for reaching his dream of financial independence.

Any venture must meet the following criteria:

• 1. No employees
• 2. No demanding customers
• 3. No overhead or inventory
• 4. No schedules to maintain
• 5. No liabilities
• 6. No sensitivity to the changing economic climate, and
• 7. No upward limits on producing income

Eureka! Bob found the answer in...Real Estate! He took several classes and tried out the various methods and techniques. After purchasing a few properties it looked like things might finally change. What changed weren't Bob's fortunes... it was a downturn in the economy! Bob kept his optimistic attitude. Although he lost a bit of money, he was better off for trying.

What happened next was almost magical. The stock market caught his attention. A pattern was developing in Wal-Mart stock. He noticed a rising and falling in the price of Wal-Mart stock. The stock would go up 3 or 4 points and then settled back down from where it started. Then it started up 3 or 4 points up again. The cycles repeated. Was this pattern predictable? With a bit of fear he decided to take the plunge and enter the stock market. In preparation he opened an account with a major stock brokerage firm. When Wal-Mart hit the low end of the cycle at $18 he bought 100 shares. During the next month Bob watched it rise to $22, so he told his broker to sell. That was the sweetest $400 he ever made!

Turn Your Dreams Into Reality!

Was his dream becoming a reality? Over the next few months he continued to trade Wal-Mart stock. His trades were successful again and again. He thought maybe this is how he can replace his job.

Bob attended a few classes to learn more. He discovered there were many ways to make money in the market than he ever imagined.

Bob felt he should focus on one simple strategy. That strategy is called covered calls. First you buy a stock then turn around and sell the right to someone to buy it from you for a higher price than what you paid for it. The buyer may or may not buy the stock from you, but in any event they pay you for that right. It was similar to a Real Estate option, where a person pays you some amount of option money for the right to buy your property at a specific price within a specified timeframe in the future.

So, with $6,000 in his account, he purchased 1,000 shares of Copytele stock at $12 per share. Once the broker confirmed the purchase he ordered the broker to sell the $12.50 calls for the next month. Bob had sold someone the right to buy his stock from him at $12.50. Someone paid Bob $1.50 per share for that right. Bob had just received $1,500 for selling the call! ($1.50 X 1,000 shares = $1,500)>

That's right! Within minutes of buying the stock, Bob turned around and sold someone the right to buy it from him at $12.50 a share within the next month and placed $1,500 into his account.

And, since Bob bought the stock on margin he only had to put $6,000 into the transaction and borrow the balance from his broker. He had invested a total of $6,000 and got back $1,500 for the month - that's a monthly return of 25%. Isn't that the kind of returns the top mutual fund managers boast about for a yearly return? Life was definitely improving.

A Possible Answer!

He found a possible business. It was writing covered calls. Bob and his family discussed the opportunity. Soon Bob was selling everything that wasn't tied down to the earth. That's not entirely accurate - he actually he sold his beautiful 3,500 square foot home and rented a 1,300 square foot house to live in. No stone was left unturned. Bob even sold his prized home built aircraft to add to his pile of necessary cash.

When you want freedom bad enough you do what has to be done. Financial independence was Bob's burning desire. Bob rearranged all of his financial commitments and when he was finished he had reduced his monthly outgo to $1,500 and put together $50,000 in cash. Trading started immediately.

Bob had learned several other strategies but now wanted little risk for his anticipated high monthly returns. Until now it was experimental. Now his entire family's future was on the line. So he began by writing covered calls.

Was this move risky for Bob? No, of course not. Remember that Bob strived to become an entrepreneur and true entrepreneurs eliminate the risk before they invest. They exploit the opportunity knowing that success is on their side.

And The Results?

After the first full month of writing covered calls he made a profit of $24,000. The second month of trading netted another $20,000. Eureka! He finally found the mother lode! It was time to make a decision about quitting his government job with the FAA.

You may find this decision an easy one, but for Bob it was pure agony. He was walking away from $70,000 a year and about $1,800 a month in retirement monies. But the lure of having a business with no employees, no overhead, and no customers was too seductive. He let go of his emotional ties and made the move. Bob says it was the best financial move he ever made!

His results were impressive. During the next year Bob averaged over 20% a month. He was now free to work at his own pace with no practical limits on producing income. Today Bob isn't just proficient in covered calls...he's an acknowledged expert!

Bob was invited to be a teacher for a popular stock market seminar company. And, in typical Bob Eldridge fashion, he instantly became everyone's favorite instructor. Bob took great pains to simplify a complex subject matter. Students flocked to his classes.

When a student needed further instructions Bob was always there with the needed time and a helping hand. Bob was often seen teaching stock market principles after class hours while continuing to mentor students late into the night. His generosity and clear explanations were what the students desperately desired. The stock market strategies aren't always easy to understand and execute. Real money can be lost if you're not following directions.

That's why Bob always suggests practicing the strategies before you trade your hard earned money. Bob's advice to his students was to work toward becoming proficient in one strategy and eliminate the risk inherent in every trade. To do this Bob suggested practicing trades on paper before committing any money to the market. First, gain confidence in your trading abilities. Prove to yourself your abilities to use the strategy to produce cash flow. Then, and only then, move on to mastering another strategy. This is what worked for Bob. Now it was working for his students as well.

Now, Share This With Others!

Bob left his teaching duties and went home to relax and spend his day trading. But his past students found him. They continued to call him throughout the day with questions on the stock market. It wasn't long before they were visiting him in his home and spending the day with him. (They were in the area anyway and just wanted to "drop by".)

His days turned into 12-hour marathons where he would trade for himself while continuing to mentor students. Bob was having fun. A student suggested he should put up a website on the Internet so Bob could show his trades and explain what he was doing. And that just about brings us full circle!

Bob welcomes you to his website and invites you to look around. If you feel that using tested and proven stock market strategies to make money and pay your monthly bills is appropriate for you, then Bob invites you to become a member and get educated.