As per my 3rd Trade (26Feb 2014), I have bought in 14lots of AMD at $4 per share & I did a positioning to Sell my AMD shares at $4 on 19th April 2014 if AMD share price is above $4 by end of trading day.
Well, if it does, this means I have to sell my AMD shares away at $4, but heh, didn't i bought my AMD shares in at $4 per share ? Does that mean i didn't make any money at all from this transaction ? Well for a Capital Gain model investing, it really dosen't profit at all. But for Cashflow Investing, I collected nett $234 even before I get to see the end result of my order in April.
From this example, I hope readers can see & understand another point of view on Investing for/from Cashflow. Of course with a slight modification I can have possibilities of making from Both Capital Gains & Cashflow.
Well, I'm expecting the upcoming earnings report for AMD to be pretty much neutral, meaning due to the re-structuring, the profits are mainly just covering the expenses. What if AMD end of day closing on 19th Apr 2014 falls below $4, like $3.90 ? (Under Capital Gains model, I would have lost money, 10cts per share) I'm still in Profit using Cashflow Investing, remember the nett $234 I received in advance ?
Lets see how AMD shows up after Mid-April then.
*Refer to disclaimer
