1) How profitable is your strategy?
Historically, we are profitable on well over 90% of our transactions. Nine out of ten trades have been profitable. That is the best profitability ratio we have ever seen.
2) What strategy do we use?
Our strategy is very simple. We look to short stocks after their stock prices have appreciated a significant amount and become overvalued. Conversely, we look to go long stocks after their stock price has fallen significantly and become undervalued.
3) How much of a gain to you try to get on each position?
Our goal is to make “easy” money. That translates into trying to make 10 to 15% per position, and then move on to the next stock.
4) How long is you average holding period?
We typically hold a security for roughly two weeks.
5) How successful has your selling naked options been?
Very.. Many of our naked options, in the past, have made 80% to 100% gains.
6) How much money will you put into one stock?
We strongly urge everyone never to invest more then 5% into any one security.
7) How long will you hold a stock?
We will hold a stock until it either works, or we get out because the fundamentals or something changed. Keep in mind we run a hedge fund, so we have many different positions. If we held onto a stock for 12 months, and we made 10%, that is much better then you can do in the bank. But our average holding period is roughly two weeks.
8) How many positions will you hold at once?
I would say we typically could have 20 positions.
9) How many transactions do you make a month?
As many good opportunities as we see, we mention.
10) Do you ever take losses?
Yes, we take losses from time to time, everyone does.
11) Who is this strategy right for?
We feel that this strategy will work best for active traders, and investors that can place an order by phone or computer after receiving an email alert.
12) How are subscribers alerted of suggested trades?
We send everything via email.
13) Is there a section to log onto the site?
No, everything is sent by email.
14) How do I get a list of the open positions?
We try to send a email twice a week, with the open positions. You can also request an open position list whenever you want.
15) Do you use stop losses?
Normally we do not use stop losses, most of our trades do not have losses. However, from time to time, if a stock is not working out we will either buy calls or puts for protection, or sell covered options to bring in money, to reduce our risk. We suggest to never invest more then 5% into any stock, this way, if it starts to go against you, you can hold it till it works out.
16) Is there any other reason you do not use stop losses?
Yes. Lots of small losses add up to be big amounts. If you loose $1 on 30 trades, that is 30 points of losses. If we took small losses, we would not have taken over 160 gains this year.
17) How much do you invest in each position?
It varies, but we will NEVER suggest to invest more then 5% into any security.
18) Why do you send suggestions by email?
Because with time being of the essence when you invest, we want you to see the suggestion as it is happening.
|