There comes a point when you realize that in order to build wealth it will require you to build multiple streams of income.
The average millionaire has seven.
The stock market is one way you can invest your earned income in order to start earning passive income and multiply your money.
Here’s how to invest in the stock market step by step for beginners.
Welcome to Franknez.com – the blog where you can digest content on personal finance, entrepreneurship, market news, and trending investing topics.
Lets get started!
I’ve been investing in the stock market since 2019.
When I learned how to open a brokerage account and buy company stock, I knew I had to show people how to do it too.
Everything I found online was outdated so I wanted to make it easy for people to start.
Benefits of investing in the stock market
One of the greatest benefits of investing in the stock market is that you get to hedge against inflation.
Inflation is at an all-time high right now and simply letting your money lose its value isn’t going to create wealth.
The stock market also provides an average return of 7%-8% annually which means those CDs and high yielding savings accounts are a thing of the past.
Even so, you can always create a portfolio bringing in 20%+ annual returns!
In June of 2021, AMC shareholders saw a whopping 3000% return on their investment at its high.
GameStop shareholders saw about half!
Although these trades are much different anomalies then traditional long-term investing, it paints a picture of the power of the market.
Let’s get you started!
#1. Set a Budget When Planning to Invest
Before you begin to invest you will need to set a budget on your first investment(s).
The great thing about the stock market is that you can invest with as little as $50 or so depending on the cost of a share.
A share is a fraction of a company you can own and earn money from as the company grows and profits over a period of time.
If you set a budget of $200 and the share of a company you want to invest in costs $50 then you can purchase (4) four shares of said company.
If a month later the shares you purchased are worth $60 each then your shares would now be worth $240, resulting in a $40 gain.
This is how investing in the stock market works.
Note: I highly recommend having your emergency fund built prior to proceeding with investing in the stock market.
It is important to highlight that the money you invest in the stock market will need to be money you can tolerate losing.
The stock market is volatile meaning the value of your assets is constantly going up and down.
Something to keep in mind is that the value of your investments can go down just as fast if not faster than they went up.
Now, this is not addressed to scare you. The stock on average has an annual return of 6-8% per year.
Why should you invest in stocks?
Investing in stocks is a great way to diversify your portfolio.
You don’t want to keep all your eggs in one basket.
For this reason, the wealthy invest in companies they believe have long-term potential to thrive and to multiply their investment.
#2. Know What to Invest In
Now that you’ve set a budget you’ll need to know what you want to invest in.
Once you do, find the stock market symbol of the company on Google search engine.
If you wanted to invest in Coca-Cola for example, you’d search ‘stock market symbol for Coca-Cola’ on Google.
You’ll see that the NYSE (New York Stock Exchange) symbol for Coca-Cola is KO.
This is how you will identify and search for companies to invest in when you’re in the market to buy stocks.
Here are some different type of investments you can invest in within the NYSE.
A stock is a share of a company just like Coca-Cola.
Buying a share from one specific company is a stock.
Stocks are good to purchase if you strongly believe in the continued success of your choice of company.
Invest in companies that have room to grow and are constantly innovating.
Stocks I personally favor are Tesla, Apple, and Amazon.
These tech companies are always innovating therefore I have strong conviction towards their continued growth and success.
An index fund is a fund that tracks and follows the index (growth) of a group of companies.
When you own a share of an index fund, you own a percentage of a pool of companies oppose to just one company.
What makes an index fund great is that if a company within an index fund isn’t performing very well there are other companies that may balance the overall performance of the fund resulting in a fair return.
A popular choice is the S&P500.
This index fund tracks the performance of the top 500 companies in the United States.
This type of investment tends to be a less risky and yield great profits over the long run.
It’s an investors favorite and I personally hold shares in the S&P500.
“Since reopening our first theatres with AMC Safe & Clean in August, AMC has welcomed back nearly 10 million moviegoers nationwide without a single reported case of COVID-19 transmission among moviegoers at our theatres. We look forward to welcoming back our New York City guests to the big seats, big sounds and big screens that are only possible at a movie theatre.”
Adam aron, President and CEO of AMC Entertainment
For those who thought AMC was a dead company, think again.
The company is now generating big revenue since it’s reopening and has beat every quarter since 2021.
Today, AMC shareholders have saved the movie theatre company again after two major proposals were finally passed following an exhausting lawsuit.
A reverse stock split and conversion of APE shares to common stock will now go into effect later this August.
AMC’s 1-for-10 reverse stock split will go into effect on Thursday, August 24.
The conversion of APE shares into AMC common stock will occur the following day, Friday August 25.
The litigation settlement will then take place on Monday, August 28.
CEO Adam Aron says these dilutive proposals will help AMC Entertainment raise plenty of cash to survive another catastrophic event.
AMC Entertainment answered questions on short sellers covering prior to its newly approved conversion proposal.
Shares of the company fell more than -30% after hours on Friday as APE shares rose +30%.
On Monday, AMC stock is down more than -33% while APE is up nearly +18%.
Will short sellers be required to cover their positions before the Reverse Stock Split and Conversion?
According to AMC’s new 8-K filing, AMC expects that the deliveries under stock borrowing arrangements will be adjusted in the regular way to account for the Reverse Stock Split or, in the case of contracts on APEs, the Conversion.
However, AMC states that it “does not determine and is unable to provide interpretive advice on the impact of these events on the contractual terms governing stock borrowing arrangements.”
How will short sellers be affected by the Litigation Settlement Payment?
“AMC does not determine and is unable to provide interpretive advice on the impact of the Litigation Settlement Payment on the contractual terms governing stock borrowing arrangements.”
AMC’s reverse stock split will go into effect on Thursday, August 24.
The conversion of APE shares into AMC common stock will occur the following day, Friday August 25.
The litigation settlement will then take place on Monday, August 28.
Will there be large failure-to-deliver (“FTDs”) like when the APE was distributed?
AMC Entertainment states that while they cannot predict the trading impact of these corporate events, given the significant transactions that will occur over successive trading days, it is possible there will be large FTDs like when the APE was distributed.
Looking Back at the Events Prior to AMC’s Short Squeeze in 2021
AMC Entertainment has raised more than 2.2 billion dollars in cash
90% of AMC theaters in the United States are now open with New York and Los Angeles finally reopening
Vaccinations and policies are making movie theaters safe
New movie titles are guaranteed to increase sales revenues
CEO and President Adam Aron expresses an optimistic future for AMC Entertainment
AMC Entertainment has implemented a Safe & Clean program under the advisement from Harvard University’s prestigious School of Public health as well as well as the No. 1 U.S. cleaning brand, The Clorox Company. This means movie goers can now return at ease knowing a proper sanitation program has been put in place.
Hedge fund affiliate partners such as MarketWatch, The Fool, and other finance website tried to redirect the public from investing in AMC stock while the company was finally reporting positive news.
That’s primarily because hedge funds were losing so much money daily as share prices continued to rise.
A short squeeze became the ultimate threat to hedge funds with massive bets towards the downside.
Today, AMC Entertainment is in a whole other world compared to where it started in 2021.
Is AMC Shorted?
AMC’s current short interest is around 27.76%, which is much higher than it was when AMC shares skyrocketed to $72.
As of 8/15, we’re seeing 200,000 shares have been made available to borrow, via Stonk-O-Tracker.
While shorts might have the capability to short AMC stock, this is only temporary.
The retail community has made big enough ruckus to where regulators are finally investigating naked shorting, or at least acknowledging the problem.
What does this mean for the AMC shareholder?
Short sellers have used this rinse and repeat process for years now.
The important thing in 2023 is that AMC is able to continue raising cash to eliminate the short thesis.
Not only has bankruptcy been off the table since 2021 (via. Los Angeles Times), but AMC movie theater attendees have increased drastically in 2023.
This in turn has increased revenue and helped AMC Entertainment pay off more debt in the past two years.
AMC Entertainment Quarter Earnings History (2021)
Below are AMC’s quarter earnings for 2021, the year the ape movement began.
AMC announced their Q1 earnings for 2021 on Thursday, May 6th.
Things have been looking particularly bullish and optimistic since that point.
The only thing getting in the way has been market makers who have big advantages over the average retail investor.
If you missed the conference call years back, you can view it here for your viewing pleasure.
AMC Q1 2021 highlights
The AMC community is recognized
Q1 earnings are higher than last years 4th quarter
Expectations for Q2 – Q4 are much higher
Food and beverage sales are up by 45%
Sales revenue will continue to rise as new titles are being released
It’s really hard to tell when an AMC short squeeze may occur.
Experts, analysts, and shareholders can’t identify an exact date and time because of how random the probability may be, as seen in 2021.
However, the possibility of an AMC short squeeze is certainly possible given that it is still a very heavily shorted stock.
We also now have more data then ever before that indicate a massive short squeeze is almost certain to happen.
Especially now that the SEC has announced some crackdown on shorting.
With Melvin Capital and other hedge funds out of the picture, it’s only a matter of time before others close their positions.
That is if retail investors can build enough buying pressure in 2023 like they did in 2021 to drive share prices up.
In the end, it truly is all up to retail investors!
Will investors be able to create another AMC short squeeze in 2023?
That might be a little harder now with all of the company’s dilutive proposals going into effect soon, but it doesn’t mean it’s still not possible.
Trey’s Trades AMC prediction
With that being said, Trey’s Trades predicted a short squeeze in 2021. Trey was a leader in the AMC community back in the day, though he’s recently taken time off from stock content on YouTube.
Data points towards AMC stock reaching $1000+ per share according to his research.
See what Trey had to say.
The real question is, how can retail investors make this AMC short squeeze happen?
We know that short-sellers eventually have to close their positions. This means that they will eventually have to buy AMC stock at the current share price.
If retail investors continue to drive the share price up by buying the dip and holding their positions, short-sellers will have no other option than to buy from the retail investor at a higher share price.
2. Retail investors will also need to buy the climbs in order to show a demand for the stock. This doesn’t have to be huge buys, rather incremental to validate the current share price.
This play essentially creates a supply and demand scenario between retail investors and short-sellers.
However, demand must exceed supply by a monstrosity amount, as we saw in June of 2021.
The results? A short squeeze.
Just make sure to take your profits this time.
The last thing you want is to see your gains turn into losses.
Hedge funds are doing everything they can to prevent a short squeeze
How are they doing this?
By promoting false information through MSM (we’re certain you’ve seen it)
Through strategies such as short-ladder attacks in the market
Dark pool/off exchange trading
HFT and Spoofing
And, by restricting certain brokerage accounts from allowing its retail investors to purchase or buy shorted stocks as seen with Robinhood (Robing hood)
This is what retail investors can do to fight corruption:
Share content that presents facts, like this article and others to raise awareness (blog posts, analysis videos, etc.)
Continue to educate yourself and make investment decisions based on your personal analysis
In 2023, investors will need to identify the primary reasons to invest in AMC Entertainment stock today.
Redditors have touched base on this topic and are determined anything below $100 is a buy, for a short squeeze that is.
However, with so much dilution happening in 2023, you might want to consider writing and coming up with your own best-case and worst-case scenario plan.
The approved proposals is a massive win for the movie theatre company whether you strongly agree with them or strongly do not.
Identifying why you’re still invested in this company or why you would like to is something that will vary from individual to individual.
“The steps we will be taking now are shareholder approved and mean the following to AMC:
AMC will be more resilient: Were it not for our ability to have raised equity over the past three years, AMC simply would not have survived the pandemic-induced decline in our business. Looking forward, the flexibility to raise equity capital at the appropriate times is an absolutely vital tool for any large company, and AMC is no exception.
We eliminate capital raising inefficiencies of APE units trading at a significant discount to AMC shares: Converting APE units to AMC shares results in a single price for all AMC equity. This single price eliminates the unnecessarily high dilution caused by the lower market price of APE units. For the past full year, for example, to raise cash, AMC could only sell APE units, and they only could be sold at a great discount to AMC shares. With single equity capital structure, I believe AMC will be able to raise equity capital more efficiently and on better terms in the future.
“Some of you fear dilution is a mistake no matter what. You are wrong.
To the contrary, sometimes raising money is an absolute imperative.
Over the past twelve months, for example, AMC raised $418 million of cash through the sale of APE units.
As of the most recent June 30 quarter end, AMC had $435 million of cash on hand.
Can you imagine how dire our circumstances would have been if we hadn’t had the foresight to raise that cash?
Companies that run out of money face financial ruin.
Just ask Cineworld/Regal shareholders, or ask Bed, Bath and Beyond shareholders.
But at AMC at the moment, we have a positive market cap, and we are so much stronger because we raised money along the way,” said Adam Aron on Monday.
Where was AMC trading at before the pandemic?
AMC was actually trading between $30-$35 back in the booming party economy of 16′!
AMC stock started to decline as their debt increased and hedge funds began to heavily short it.
However, AMC Entertainment Holdings, Inc. is in a completely different world today than it was during the pandemic with box office number reaching pre pandemic levels.
Analysts have been expecting big earnings results from the movie theatre chain due to the rise of this year’s second quarter box office numbers.
“While we still have much work ahead of us on this front, AMC’s glide path to eventual recovery continued with significant pace in the second quarter of 2023 as our results set new records and represent AMC’s strongest second quarter in four full years.
Following an impressive start to the year in the first quarter of 2023, the second quarter yet again showed great progress.
AMC saw more than a 12% growth in attendance, a 15% growth in total revenue and a 71% increase in Adjusted EBITDA compared to the second quarter of 2022.
Indeed, Adjusted EBITDA was $182.5 million, the highest such quarterly figure since the fourth quarter of 2019,” said AMC CEO Adam Aron.
Barbenheimer Produces Big Results in 2023
Towards the end of July, AMC Entertainment broke a 4-year weekend high record as “Barbenheimer” produced results bigger than expected.
The results demonstrate AMC’s path to recovery is also strong in Q3 of 2023.
“Barbie” ended up with $162 million in its first weekend of release, above Sunday’s already record-breaking estimate of $155 million. The Warner Bros. film, starring Margot Robbie declined just 9% from Saturday to bring in $43.7 million on Sunday.
Those ticket sales rank as the biggest opening weekend of the year, besting “The Super Mario Bros. Movie” ($146 million).
“Barbie” also marks the biggest debut ever for a film directed by a woman, overtaking Anna Boden and Ryan Fleck’s 2019 blockbuster “Captain Marvel” ($153 million), says Variety.
“Oppenheimer,” also beat expectations with $82.4 million, slightly higher than Sunday’s huge $80.5 million projection.
At the international box office, Oppenheimer added $98 million for a global tally of $180 million.
“The box office powered to its fourth-biggest weekend in history with over $300 million industrywide, said Variety.
What If a Short Squeeze Doesn’t Happen?
If an AMC short squeeze doesn’t occur, AMC stock price should still go up during the longer term process allowing shareholders to make at least some sort of profit.
That is, as long as the company continues to improve going into 2024 and the rest of the decade.
With AMC theaters now open since 2021, it’s inevitable that the company will begin to see bigger sales revenue every time a new title is released.
Keep in mind that AMC’s share price during the booming party economy of 16′ was roughly around $30 per share.
If a short squeeze doesn’t happen, fundamentals will continue to bring the stock up as more investors are buying the stock.
It’s also important to keep in mind that majority of the float is also held by retail investors, so the company has a huge support.
Interactive Brokers Chief Strategist Steve Sosnick says there’s big demand to short AMC Entertainment (NYSE:AMC) stock.
He says the biggest reason aside from the company’s fundamentals is its new merge with its equity (NYSE:APE).
“It’s very hard to keep the momentum in these things because economic reality does take hold.
Bed Bath & Beyond, at one point was the best performing stock on the board until reality set in and they began defaulting, averted bankruptcy, but using a deal that is so dilutive that it’s unavoidable.”
Sosnick says AMC is in a very special situation because of the proposal to merge APE with AMC common shares.
“Right now we’re seeing such a demand to short AMC partly because of its difficulties but partly because of the special situation.
This really is what they were looking for in some ways as the mother of all short squeezes.
The borrow rate, it costs you 700% to borrow the shares overnight — if you can find them,” said the Interactive Brokers Chief Strategist on Yahoo Finance.
Is AMC Entertainment stock about to squeeze this year?
It already sounds like heaven doesn’t it? To become mobile and successfully make money online while traveling?
The great news is that it is most definitely possible! But are you willing to put in the effort to see these seeds bear fruit? Here are 5 hustles that allow you to work from practically anywhere in the world.
Welcome to Franknez.com – the blog where I publish posts on personal finance, side hustle ideas, entrepreneurship, and trending investing news.
Let’s get started!
#1. Take On a Commission Based Sales Position
An outside sales position is going to provide you with the freedom to travel as you please while earning money based on your monthly performance.
These types of positions don’t ground you to an office which makes it easier to become mobile.
You can take on one of these commission-based sales positions from all type of industries. The premise would be to sell a service or product for a business where you’d take a piece of the cake at the end of the month.
When you have a nice basket of clients your living expenses will be taken care of quite easily.
You can then shift your focus on creating another source of income that can either surpass your commission based sales position or continue to build both ventures while doing it from essentially anywhere in the world.
How much do commission based sales positions offer?
Commission percentage will vary from business to business in a given industry.
Expect to see from low to high anywhere from 5% to 35%.
Do I need a degree to be in sales?
More often times than not, you don’t need a degree to be in sales. Sales are based on results, not on what school you went to. Although I majored in Business Administration, we never went through sale scenarios or physically worked on that aspect.
Schools are businesses too, and professors are human beings too. Book theory is nothing compared to the real world.
#2. Create And Sell Digital Goods Online
Are you a great designer or professional in creating digital services and goods? You might want to consider selling your talents online.
Here is a list of digital services and goods you might want to consider providing online:
Posters and fliers
Vectorizing or digitizing
Personalized business templates
Mockups and other virtual designs
This is what makes creating and selling digital goods such an awesome gig. Not only do you get to have fun doing what you’re really good at but you get to make money online while traveling.
Like all of these hustles, you’ll see that all you need is a laptop and an internet connection to make money online.
You can make money online and you don’t even need a degree for this! If you’re good at designing, then you can make more money than the person who got a degree but never pursued the career.
Find your target audience and begin to market your service or product.
How much money can I make with designing artworks?
Depending on your niche, designers are charging anywhere between $10-$100 per design.
For example: Digitizers and vector creators can charge $10-$45 while business logo designers can charge upwards of $100 for an art with consultation included.
#3. Dropship Hard Goods on eBay or Amazon
For those of you who have read that drop shipping is dead, it simply isn’t. Drop shipping is a great way to provide value to those looking for a specific product that you are able to provide exclusively to them.
What I personally love about drop shipping is that you can be anywhere in the world and out of nowhere you receive a notification that an item sold. The following notification advises the buyer has paid and now it’s time to ship.
I pull out the laptop, order the item, and have it ship directly to my customer. Boom! Takes five minutes and there’s no labor included.
Drop shipping hard goods has allowed me to make money online while traveling with my family. It feels amazing when you learn to make money outside of a job that doesn’t require you to clock in for 8+ hours.
How much money can I make drop shipping?
If you start a drop shipping business you can earn as high as six figures in revenue. If you’re drop shipping as a side hustle, expect to earn anywhere from a few hundred dollars to thousand per month.
Clothing and apparel is a very successful niche but you can sell just about anything online.
#4. Start Consulting Online Using Fiverr
A lot of people still don’t know about Fiverr which is very surprising.
Fiverr allows you to sell consulting services online, teach a language online, show people how to level up on games, proof-read peoples papers, and so much more! Yup, all from anywhere in the world.
Do you have a passion for teaching or helping people advance in certain areas of their career? Fiverr is a great platform for you to sell online services and tutorials.
Another benefit of using Fiverr is that you can also buy other peoples services. This can further help you excel in your business endeavors.
Say your business needs a logo. Many graphic designers sell their services here for as little as $10! Now say you need an animated advertisement video with music and compelling visuals for your business. You can use Fiverr to find professionals who sell these services to you.
So, I can sell my own services AND buy other services?
This is why Fiverr should be a website all upcoming entrepreneurs need to have bookmarked.
This platform allows you to sell your service, and purchase other services without having to hire a team or spend money on an overhead.
#5. Monetize a Blog
Not only is blogging an awesome platform for you as an individual to express your opinions, but it’s also a platform where you can provide lots of value and information to the rest of the world.
When your blog begins to consistently attract traffic, you can monetize it and begin making money online.
Here are a three ways bloggers are making money online while they travel:
Advertising their blog with Google Ads
Selling their own product or service to their readers
Commission from affiliate programs
If you’ve ever thought of blogging about cars, music, travel, health, fitness, or even sports,you will find blogging is a very fun way to earn money from a writers perspective.
Everyone can make money online. Yes, even you. It doesn’t even have to be with any of the mentioned topics. You can create your own means of providing value to the marketplace online.
One of my first side hustles online was doing reviews. I created a website, put my creative touch on it and took action. People saw a need for what I was offering and it was the first time I made money online.
I knew that that side hustle was just the beginning.
How long does it take to make money online?
Honestly, it takes as long as you prolong it. But it’s more than that. I monetized my blog with Google AdSense the first month of inception. Yes, I got rejected multiple times, but I didn’t quit.
It’s going to take as long as you see it through. And although it took me a month to make money online from blogging, it was only cents.
It then took 15 months for my blog to be bringing in hundreds of dollars per month. Franknez.com then began to earn its first $1,000 and eventually thousands per month with some months earning 5-figures. I just kept putting the work in.
If you truly want to make money online you will find a way to do it. I support you 1000%.
Let me know in the comments section below which of these ventures captures your attention the MOST.
Leveraged income is probably one of the best incomes you can have.
You essential create something once and get paid for it multiple times!
Guys, this is how you can end up generating what Dan Lok calls F.U. money.
This type of passive income is what’s going to set you free.
Here are 5 ways you can earn leveraged income.
Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
Lets get started!
There are 3 Types of Income
But before I get into them, let’s quickly discuss the different types of income.
There are three main types of income, all of which require different resources in order to move them.
Linear Income – The first is linear income, which is the type of income most people have. It’s where the resource you trade for money is your time. This is your typical 9-5 job, freelance, etc.
Passive Income – Passive income is money generated through investments. This can be income from a high interest CD or savings account. It can also be in the form of dividends paid out from shares of stocks. Passive income may also be generated from rental income if you own property. The resource required for this type of income is capital.
Leveraged Income – And finally, there’s leveraged income. Enough leveraged income and you no longer have to rely on linear income to pay your bills. Leveraged income is earned by creating something once and getting paid continuously for it. You’ll need an audience in order to make the most out of this type of income.
If your goal is to become wealthy, you need to get rid of your linear income.
This income is holding you back more than you know.
Why work 8 hours for someone else when you can use 8 hours of your day to work on growing your own business.
How can I escape my 9-5 job?
Escaping your 9-5 is going to require a lot of work on your part but it is certainly possible.
You’ll need to pick up a side hustle while you’re employed.
You can also choose to start your own business or follow an art project, with financial support from a licensed moneylender.
Once you’ve chosen what you’d like to pursue, work on this idea every day after work.
When I learned that Elon Musk and Steve Jobs all had the same hours in a day as I do, I really started using my time wisely.
Figure out how to earn money outside of your job so you’re not 100% dependent on your linear income.
Start setting yourself up for passive income
One way I started was by setting myself up for passive income.
I then downloaded the app Mint by Intuit to track my net worth. It gradually went from $6K to $10K and so on.
It has since reached +$100k.
I began putting money in stocks and in a high yield savings account where my money would do something.
Rather than have it collect dust I figured I’d put it to use.
When I saw returns I let go of fear that was holding me stuck to the 9-5.