Showing posts with label strategy. Show all posts
Showing posts with label strategy. Show all posts

Friday, December 8, 2017

New Strategies for Big Gains in an Old Bull Market

2017 is just about done and it's time to look at what worked and what didn’t. If you have gains, you want to protect them. If you have losses, you want to turn things around. With over 10,000 stocks to choose from, sometimes trading can feel like searching for a needle in a haystack.

But you don’t have to try to pick the right stock in the ‘haystack’. With Exchange Traded Funds (ETFs), you can just buy the whole haystack, especially when you’re taking advantage of ETF options.

To show you the right way to take advantage of ETF options, our friend John Carter, CEO of Simpler Trading, is putting on a live FREE interactive webinar just for our readers.

Register Here

If you haven’t heard of John before, he’s traded for over 25 years. He’s not only written a bestselling book on trading [check out Mastering the Trade right here], he’s also earned quite a reputation for catching huge moves.

2017 over $600 billion was poured into ETFs and John sees an even bigger year ahead in 2018. That’s why he’s so focused on his ETF options strategy. You can hedge against your portfolio while limiting your risk. You can even profit from your hedge.

John covers all that, plus:

  *   Why ETFs have powerful advantages even the newest of traders can exploit

  *   When to go for maximum leverage using double and TRIPLE leverage ETF options

  *   How ETF traders can cherry pick sectors to always ‘follow the big money’

  *   How to properly hedge against corrections and crashes without erasing gains

  *   How to take full advantage of the new Bitcoin ETF when it arrives

  *   The latest tools for identifying setups with the potential for triple digit gains (or more)


And a whole lot more.…

When it comes to ETF strategies, the opportunities are vast, There’s something for just about every trading style, from day trading to long term positions, and of course, hedging your portfolio. We got John to break it down for you and make it as simple as possible to maximize your profit potential through ETF options.

If you’re interested, go ahead and grab a spot for this training.

Go HERE to Register

See you Tuesday night!

Simpler Trading

Saturday, July 15, 2017

Momentum Reversal Method Strikes Again with MOBL

In early May, 2017, we alerted our followers to a trading opportunity that resulted in a nearly perfect Momentum Reversal Method (MRM) setup – this trade was MOBL (Mobileiron Inc).  Now that the trade has completed, we wanted to share with you an example of how the  MRM trading strategy works and how successful some of these setups can become.  But first, lets take a bit of time to understand what Active Trading Partners is and how we provide benefit and services to our clients.


Active Trading Partners is a research and analytics firm that specialized in US Equities, ETFs and major Commodities analysis.  Our objective is to continually provide updated research and analytics for our members as well as to actively deploy our specialized Momentum Reversal Method (MRM) trading strategy for our members use and benefit.  As many of you may remember, on June 11 2017, we posted our research that the “NASDAQ would sell off” and the “VIX would SPIKE” on or near June 29th, 2017.  How many of you would have loved to know that we predicted a 6% swing in the NASDAQ and a 52% swing in the VIX two weeks in advance on the EXACT DAY it happened? 
What we are trying to illustrate to you is that we attempt to provide value beyond our trading signals and beyond our daily updates.  We attempt to keep you aware of what is likely to happen in the global markets and how these swings can be advantageous for you as traders/investors.  So, before we get sidetracked on the extras we provide, lets focus on this MOBL trade.
MOBL began to appear on our MRM alerts in early April 2017.  As with many of the MRM type of setups, they begin can sometimes start to alert us to setups days or weeks in advance of the actual move.  In this case, classic technical and Fibonacci analysis assisted in confirming our MRM trigger.  The MRM setup was valid and we simply wanted to watch the MRM setup for signs of price volume/rotation.  We often use this price/volume rotation trigger as a means of setting up entry functions for pending MRM triggers.
In early May 2017, the price/volume rotation trigger was complete and now we had a valid entry into MOBL with projected targets of $5.45 and $6.25.  Our analysts identify the targets based on recent price action, where our entry is located and current price/volume rotation levels.  In other words, if we believe the move will be short term, then we will adjust our targets to focus on immediate objectives.  If we believe the move will be a bit longer-term, then we will adjust our targets to focus on that objective.
Just to be clear, everything originates from the MRM trigger.  We may see 20 or 30 of these triggers each week.  From there, price confirmation MUST occur or have already happened in order for it to be considered for our ATP members.  Additionally, we attempt to gauge the overall global markets in terms of risk parameters for each MRM setup/trigger.  If the US majors or global markets are weak and fearful, then we’ll address that risk by being more selective of our MRM triggers and setups.  If our analysts believe the US and global markets are going to continue to trend, then we may widen our risk parameters a bit more.

On May 11th, 2017, we issued a BUY Swing Trade Alert for MOBL @ $4.65 for a FULL Position.  This exact alert read as follows:
Buy Symbol : MOBL
Max Buy Price: $4.85 or lower
Position Size: FULL
Stop loss: Close below $3.95
Target: $5.45, then $6.25 objective for a 17~35%+ swing potential
Enter FULL position below $4.85 today. A move above $5.35 is expected with a potential for a move above $6.50 later.
As you can see from these charts, we executed the MOBL trade flawlessly. The first target was hit only 6 trading days after entry for a +17% gain.  The second target took a bit longer, but it was eventually hit  26 trading days after entry (about one month after entry).  It was just prior to the second target being hit that our research team indicated that MOBL could run much higher and that we should alert our members that we are going to use Target #2 as a stop adjustment and attempt to let this position run.  Typically, we get about 2~4 of these types of trades each calendar year for our members – you know, the big breakout runners that can turn into 30%, 50%, 120% or more.



When all was said and done, Our VIX/NASDAQ analysis was perfect and the rotation in the tech markets resulted in our MOBL trade getting stopped out July 3rd, 2017 @ $5.85 for a +25.6% gain.  

This single trade resulted in a +$4000 total return for our members – this one trade will cover their ActiveTradingPartners.com membership for almost FOUR YEARS.  Believe it or not, we are expecting MOBL to generate another MRM setup soon that could allow us to re-enter this trade for the next run higher.



This is an excellent example of how our Momentum Reversal Method strategy works and provides benefits for our clients.  Not only do you receive these timely and accurate triggers, but you also receive our advanced research and market analysis.  Like we said early, we alerted our members to a critical June 29th market move two weeks before it happened and our analysis hit perfectly.  We like to ask our clients and viewers this question, “isn’t it time you invested in your future?”.  We would really like to help you achieve greater success and find greater opportunities in the markets, but you have to subscribe at Active Trading Partners .com for this to happen.
Isn’t it time you invested in quality, logical trade research your future? CLICK HERE TO JOIN

Chris Vermeulen
aka the Gold and Oil Guy


Stock & ETF Trading Signals

Monday, August 29, 2016

How to Adapt Your Trades Automatically for Choppy Conditions and Big Trends

Have you noticed we’re getting a lot of brutally sharp reversals in the markets lately? It’s so frustrating because most traders get caught on the wrong side over and over again. So called safe trend trades get destroyed while betting on bold reversals is working like clockwork.

What’s going on?

For years, it was possible to just buy any dip in stocks and crank out winner after winner. But those days are long gone. If you try that now, you’ll burn through your account in the blink of an eye. These days’ trends reverse on a dime, but at the same time, you can’t just blindly pick tops and bottoms either.

Anyone who was short stocks recently learned that lesson the hard way when the market rocketed to new all time highs. The bottom line is that those outdated strategies no longer work. If you want to generate consistent profits in these volatile conditions, you’ve got to adapt. And that’s why this short video by renowned trader John F. Carter is so exciting

You’ve just got to see the breakthrough strategy that allows him to catch massive price swings without breaking a sweat.

See for yourself >>> Click HERE to Watch <<<

If you haven’t heard of John before, he’s a best selling author and trader with over 25 years’ experience. He’s developed a world wide reputation for catching explosive trends in stocks, options, and even futures, too.

So I hope you attend on September 6th, 2016 at 7:00 PM Central for a special webinar called, “Hunting for Tops and Bottoms - Low Risk Setups for Trading Precise Turning Points in Any Market”.

Here’s just some of what you’ll learn....

  *  A simple 3 step process to identify major market turning points in any market

  *  How to find low risk, high probability trades in today's volatile market conditions

  *  Why it’s finally possible to catch tops and bottoms in real time on almost any chart

  *  Why these ‘Bold and Beautiful’ reversal trades can be safer than ‘comfortable’ trades

  *  How to avoid getting suckered into the costly traps that most traders fall into

  *  How to adapt your trades automatically for choppy conditions and big trends

  *  How to know when a support or resistance level is likely to hold or not

And that’s just the tip of the iceberg.

I’m looking forward to this special event and I expect I’ll be taking a lot of notes, too. There may not be a replay and this event will almost certainly fill to capacity – so register now and be sure to show up a few minutes early. Unless you’ve already mastered trading these volatile swings, this could be the most important training you attend this year.

To claim your spot just Click HERE

See you next Tuesday,
Ray's Stock World


P.S.   If you have not downloaded John's free eBook do it asap....Just Click Here



Thursday, March 24, 2016

Bursting the Biggest Myths in Trading - Don Kaufman's Next Webinar

Our trading partner Don Kaufman is treating us to a free trading webinar this Tuesday evening March 29th at 8 p.m. est. Don't put off reserving your spot since Don and his team are only opening up this up for 1,000 traders.

Reserve Your Spot Here

During this free webinar Don will cover....
  • How you can give yourself the gift of time without paying extra so you can give your trade as much time as it needs
  • How you can create a trade with zero exposure to volatility so you never have to worry about volatility again 
  • How you can set your limited risk before you put on the trade so you know exactly what you're risking. Making this strategy the safest way to trade. So much for the myth that options are risky.
  • How you can generate big returns from small moves in a stock
  • How you can use this strategy whether you have a $2,000 account or a 6 figure account
There will be a waiting list of traders for this free class so make sure you log in 10 minutes early so you don't lose your spot.

Click Here to Get Your Reserved Seat

See you Tuesday night!
Ray's Stock World



Don Kaufman


Sunday, March 20, 2016

Four Trading Strategies That Work

If you have been following us this year you already know that our trading partner Chris Vermeulen has been spot on in 2016 and has helped our readers make profitable trade after profitable trade this year. We have followed and worked with many traders over the years so we know what trading information is useful and what is just junk information.

Chris' connects with most readers through his complimentary stock trading and education newsletter which includes simple trading strategies to use with stocks, options, futures or forex.

Get Chris' newsletter "The Four Trading Strategies That Work" right HERE!

We hope you enjoy the free content and learning from some new tips and tricks for your own trading toolbox. To further add value Chris has put together a way for you to learn some of his trading strategies which cover stocks, options, futures and forex.

Bookmark this link since you can only select one free trading strategy at a time when you optin to the form on this special webpage below. But I should note, if you want a second or third strategy you just need to revisit the optin page, optin, and select another strategy.

These strategies are only available for a couple days then Chris takes them down so click the link below and optin to be presented with the four trading strategies.

Click here to get the free "Four Trading Strategies That Work"


See you in the markets.
Ray's Stock World



Stock & ETF Trading Signals

Sunday, May 24, 2015

New Video: Secret Strategy to Get into Stocks Before the Hedge Funds Do

When our trading partner John Carter of Simpler Stocks and Options makes a claim like this we listen and so should you. John has put together a new free video that shows us how to use the habits of most hedge funds to know exactly when to enter positions. And this is easy.

Just click here to watch "Why Now is the Best Time to Buy Stocks"

In this free video John will share:

  *  Why money coming out of a large cap stocks is an opportunity for you

  *  What's the magic price that gets stocks on the hedge funds radar

  *  Why there is still an opportunity in buying stocks today if you know where to look

  *  Why the opportunity is no longer in the stocks you probably own right now

      And much much more.....

This free video will show you the secret strategy John uses to ride stocks UP when the hedge funds start doing the driving.

Watch it here and put this to work NOW!

See you in the markets!
Ray's Stock World


Secret Strategy to Get into Stocks Before the Hedge Funds Do


Thursday, February 19, 2015

Simple Strategy Alert: Premium Decay

We all think we know what premium decay is right? Well, I thought I knew how it worked until I watched this new video from our trading partner John Carter of Simpler Options. I never knew just how powerful and simple it was to apply knowledge of the decay principal to trading options.

Basically it's a way to insure the health of your portfolio even in an unhealthy market.

In this free video John shows us a simple and effective strategy for using premium decay, but he also shows you his strategy to make money on a stock whether it's going up or down.


Here's a sample of what John will share with us.....

  *  How to “control” stocks for a fraction of the price so you don’t risk all your capital - How you can
      generate consistent returns being dead wrong

  *  What “premium decay” is and how you can use to it to give yourself an edge in trading

  *  How you can set up occasional home run trades while generating consistent returns

  *  A handful of the key stocks I look at every day so you don’t go bug eyed looking for stocks to trade


Don't miss the game changing video "Simple Strategy Alert: Premium Decay"....Watch Video Now


John Carter has become well known for his wildly popular free options trading webinars and his free options trading eBook that changed the way traders looked at options trading in 2014.

Download the free eBook HereWhile you still can!

Tuesday, December 23, 2014

Here is the Ideal Year End Portfolio Fix

By Dennis Miller

Some years back, my wife and I embarked on a cross country trip in our first motor home. Driving a 40 foot bus was a bit frightening at first. I was poking along in the center lane of I-75 and big tractor trailers were whizzing past me. The bus came with a Citizens Band radio. I tuned in to channel 19, listened to the truckers, and sure enough they were complaining about my slow driving. So I announced myself, told them I was a rookie and asked for their patience.

There was a brief pause. Then one savvy old trucker came on and said in a deep southern drawl, “Son, there is only one rule you need to know to stay safe. Keep’er ‘tween the lines!” That’s precisely what my team and I recommend every investor do this month: keep your portfolio between the lines. One of the more popular investment strategies is to ride your winners and dump your losers. It’s hard to argue with that approach. You can buy 10 stocks, have five winners and five losers, and still make a lot of money.

Another popular strategy is to buy and hold, particularly larger companies that are big, profitable, and not likely to go anywhere. Those who recommend this strategy point to historical gains. That’s all well and good; but as Mike Tyson said, “Everybody has a plan until they get punched in the mouth.” Many of my friends were punched square in the jaw during the 2007-2008 meltdown.

Many had recently retired, taken a lump sum out of their 401(k)s, and invested 100% of their retirement savings in the market. Talk about a right hook! You work for the better part of 50 years, diligently make projections with your financial planner, and then your life savings shrinks by half... almost overnight. Follow that up with a trip to your advisor who says, “Trust me. Don’t worry. It will come back. It always does.”

Don’t worry?

In this case, they were right, eventually. The market recovered in less than six years. Does it always do that? Should we just hold an index fund and ride it out? The answer to both questions is “no.”

Protect Yourself Against the Next Right Hook


Portfolio rebalancing can be a very effective strategy, particularly with money earmarked for retirement. No one can guarantee the market will come back quickly from a downturn. Retirement investors must protect their principal because they might not have time to recover from a 40-50% drop in their net worth. Rebalancing your retirement portfolio is a critical step in protecting your assets. Instead of trying to maximize gains with excessive risk taking, anyone approaching retirement age should look to avoid catastrophic losses so that their portfolio can steadily provide income if and when they stop working.

The Best Protection


At Miller’s Money, protection starts with our three investment category allocations: 50% in Stocks, 20% in High Yield, and 30% in Stable Income (cash account substitutes). Within those categories we’ve implemented significant asset class and geographical diversification. We also recommend holding no more than 5% in any individual investment.

Rebalancing is nothing more than readjusting your portfolio at least annually to keep’er ‘tween the lines.
If you start with a $100,000 portfolio, then allocate $50,000 to your personal Stocks category with no more than $5,000 in any single investment. If you have a good year and your nest egg rises to $120,000, you adjust your stock allocation to $60,000 with no more than $6,000 in any single investment.

We hope that every year our portfolio grows and we have to sell some stocks at a gain to rebalance. Our strategy is to ride the winners and cut short any losses, minimizing the potential for Tyson style punches to the mouth. Buy and hold may work for 30 somethings, but it can be a death sentence for someone approaching retirement age.

Mr. Market does not care if you are working or retired; at some point there will be another sizable downturn. Rebalancing is key to keeping your wealth in tact when that happens. And, if you’re wondering where (if anywhere) bonds fit in to today’s best retirements plans, you can download a complimentary copy of the new Miller’s Money special report, The Truth About Bonds here.

The article The Ideal Year End Portfolio Fix was originally published at millers money


Get our latest FREE eBook "Understanding Options"....Just Click Here!



Tuesday, December 2, 2014

Investors That Do Not Understand The Power Of Seven Will Lose Money in 2015

Investors and traders around the world continually search to find or increase their edge in the financial markets to boost profits. The next few months are going to be critical for investors because the number seven is now in play for the stock market.
In magical lore seven is a magical number., While all numbers are ascribed certain properties and energies, seven is a number of power, a lucky number, a number of psychic and mystical powers, of secrecy and the search for truth. Seven is used 735 times in the bible and if you total up all words including “sevenfold” and “seventh” there is a total of 860 references.
The origin of seven’s power lies in the lunar cycle. The moon has four phases lasts about seven days. The Sumerians gave the week seven days. Life cycles on earth also have phases demarcated by seven, and there are seven years to each stage of human growth, seven colors to the rainbow, seven notes in the musical scale, seven petitions in the Lord’s Prayer, and seven deadly sins.
More importantly for investors the number seven and multiples of seven have a powerful influence on money. The U.S. stock market is now trading in the seventh year window and it should not be taken lightly. While I could go into a lot more detail about how I use seven in my algorithmic trading strategy to swing trade the S&P 500 index. This article focuses on the investing outlook.
I am fortunate enough that I have been trading since 1997 and have seen the how the stock market cycles affect human behavior and businesses specifically the financial newsletter industry which I have been involved in since the first day my trading career. The stock market appears to be nearing a critical turning point that will change the lives and behaviors of investors for years to come.
The good news is that I have experienced four of these turning points and human behavior shifts in my career before and we currently entering the fifth turning point. I feel obligated to share this valuable insight with those of you who read my work. The next major market move could have a dramatic impact on your wealth and retirement years.
Insight on Investor Behavior and Business
Being heavily involved in the financial newsletter industry I have not only seen but survived several of these major cycles which forced many newsletters to go out of business. The cycles at play here are the market trend and the behavior of traders and investors.
The combined forces of these two cycles are what cleanse the newsletter industry of poor quality services. It becomes almost impossible to obtain new clients without word of mouth/referrals from happy users and if the quality of the newsletter is poor, eventually they lack enough users to make it feasible to operate. Unfortunately it’s the brutal truth, and over the last couple years I am seeing newsletters and even to top trading magazines that have been around for decades closing their doors.
The business cycle can easily be explained by observing the chart below of the SP500 index. In short, when the stock market has been rising for six or more months investors start to become confident in that they can make money on their own. And in fact they can if they buy and hold during a bull market.
But what happens as the market continues to rise for many years is that more and more investors and traders realize they can make money on their own.  The longer the uptrend remains intact the less will need the help of a trading and investing newsletter making it difficult to get new customers in this highly competitive industry.
Currently investors are behaving almost identical to what I saw during 1999 – 2001, from 2006 – 2007, and now 2014 – 2015 market tops.
Let’s now take a look at the best times in the business cycle where traders and investors are in desperate need of help and start subscribing to multiple paid financial newsletter services. The strongest times for business took place during 2002 – 2003, and again in 2008 – 2010. This is when investor not only lost most of their wealth, but their faith in how they invest, who they invest with, and the stock market as a whole.
Did you notice any these also? They are 7 years apart also…
spx-7
 Investors 7 Year Financial Outlook
Those of you who follow me know that I do not pick market tops or bottoms. Rather I focus on identifying trends and cycles in the market and only trade and invest with the active confirmed trend.
You also know that trying to pick market tops and bottoms is a suckers game and a sure fire way to lose a lot of money and build a serious complex that the market is manipulated, not tradable, and that it may be time for you to give up on trading all together.
Well, I am here to say that the market is tradeable, and can generate traders and investors a boat load of money once you understand how and why it moves. Most importantly you need to understand money/position management and be patient for consistent long term gains.
Take a look at the chart below for a clear visual of 7 year cycle highs and lows at play.
 seven

While I do not invest based on this major seven year cycle I do actively trade a smaller market cycle which provides roughly 35 – 65 trades per year. This strategy allows me to profit during these major bull markets and also during the multi-year bear markets when the majority of investors are losing boat loads of their hard earned money.
The reason I do not invest in the seven year cycle is because the market can still have 30+% price swings within bull and bear markets and that type of volatility is beyond what I am comfortable with. Also because I can actively invest with my automated trading system so I don’t need to lift a finger or watch the stock market each day, week or month.
I hope you found this report useful in some way, and I ask that you share it with others.


Get our latest FREE eBook "Understanding Options"....Just Click Here!


Thursday, November 20, 2014

Cut Trading Risk and Increase Reward with a Strategy I Know You're not Using

"Amazing insights...THANKS!"

"Whoa, completely changed my mindset on ETFs"

Those are two quotes from people who watched John Carter's latest video on trading options on ETFs: John's Favorite Ways to Trade Options On ETFs

He shows you how his strategy allows you to cut risk, increase rewards, and grow your account [of any size we might add] using options on ETFs.

Don't worry...it's VERY clear and easy to apply (Watch Video)

John also shows you....

   *  Why trading options on ETFs cuts your risk so you can sleep at night

   *  How you can profit with ETFs from the unexpected move in the dollar

   *  Why you avoid the games high frequency traders play by trading ETFs

   *  Why most analysts have the next move in the dollar wrong and how to protect your investments

   *  What are some of the markets that will be impacted by the dollars next move

This is crucial information that I highly recommend you take the time to review...it's FREE after all.

Stream the video HERE

See you in the markets putting this to work,
Ray's Stock World


Get our latest FREE eBook "Understanding Options"....Just Click Here!


Saturday, November 15, 2014

New Video: How You Can Profit with ETFs from the Unexpected Move in the Dollar

You've seen us talking about a new Options strategy that John Carter was working on recently...and he is finally sharing it with us.

Video: My Favorite Way to Trade Options on ETFs

This strategy is the "sleep at night as you trade options" strategy. And we ALL need that!

Here's just a taste of what John shows you in this video:

*  Why trading options on ETFs cuts your risk so you can sleep at night

*  How you can profit with ETFs from the unexpected move in the dollar

*  Why you avoid the games high frequency traders play by trading ETFs

*  Why most analysts have the next move in the dollar wrong and how to protect your investments

*  What are some of the markets that will be impacted by the dollars next move

Here's the link to watch the video again

Enjoy the video,
Ray's Stock World


Reserve your seat now for John's next FREE webinar "Why You Should Trade Options on ETF's"....Just Click Here!


Thursday, October 30, 2014

Heads Up.....Our New Options Related eBook and Some Insider Info

First of all, read this eBook if you're interested in Options, you actively TRADE options, or want to lay the groundwork for being a successful options trader.

Understanding Options by John Carter

It's a great book from an options expert who's taught THOUSANDS of traders over the past year alone to conquer the options market like he has...and trade successfully!

Just Click Here to Read it NOW! 

Second, related to the above ebook, I received from an inside source that John's been perfecting and trading a new options strategy focusing on leveraging the huge potential of ETFs...and he's going to be SHOWING people exactly how it works...start to finish!

I can't disclose much, but if you trade ETF's and want to leverage trade them using options, then keep an eye out for when I'm 'officially' allowed to tell you about it. (hopefully in another 2 weeks according to my source)

For now...Read his eBook FREE! 

See you in the markets!
Ray's Stocks World



"Understanding Options"....Just Click Here!

Monday, May 12, 2014

What You and Monica Lewinsky Might Have in Common

By Dennis Miller

Collateral damage can assume many forms—and though some may be more newsworthy than others, the latter are no less real, nor any less frightening.


On Tuesday, controversial radio talk show host Rush Limbaugh called Monica Lewinsky “collateral damage in Hillary Clinton’s war on women,” saying that President Bill Clinton and his wife destroyed the former White House intern “after he got his jollies, after he got his consensual whatevers.”

Last month, Jeremy Grantham, cofounder of GMO, a Boston based asset management firm that oversees $112 billion in client funds, dubbed savers “collateral damage” of quantitative easing and the Federal Reserve’s continued commitment to low interest rates.

Would it be worse to be known as the “president’s mistress” for more than a decade and, as Lewinsky claims, to be unable to find a normal job? Maybe. But it’s no laughing matter either to find yourself penniless in your “golden years.”

Signs of Monetary Collateral Damage Among Seniors

 

The 55-plus crowd accounts for 22% of all bankruptcy filings in the U.S.—up 12% from just 13 years ago—and seniors age 65 and up are the fastest growing population segment seeking bankruptcy protection. Given the wounds bankruptcy inflicts on your credit, reputation, and pride, it’s safe to assume those filing have exhausted all feasible alternatives.

But even seniors in less dire straits are finding it difficult to navigate low interest rate waters. Thirty seven percent of 65 to 74 year olds still had a mortgage or home equity line of credit in 2010, up from 21% in 1989. For those 75 and older, that number jumped from 2% to 21% during the same timeframe—another mark of a debt filled retirement becoming the norm. With an average balance of $9,300 as of 2012, the 65 plus cohort is also carrying more credit card debt than any other age group.

While climbing out of a $9,300 hole isn’t impossible, the national average credit card APR of 15% sure makes it difficult. For those with bad credit, that rate jumps to 22.73%—not quite the same as debtor’s prison, but close.

None of this points to an aging population adjusting its money habits to thrive under the Fed’s low interest rate regime.

Minimize Your Part of Comparative Negligence

 

A quick side note on tort law. Most states have some breed of the comparative negligence rule on the books. This means a jury can reduce the monetary award it awards a tort plaintiff by the percentage of the plaintiff’s fault. Bob’s Pontiac hits Mildred’s Honda, causing Mildred to break her leg. Mildred sues Bob and the jury awards her $100,000, but also finds she was 7% at fault for the accident. Mildred walks with $93,000. (Actually, Mildred walks with $62,000 and her lawyer with $31,000, but I digress.)

Comparative-negligence rules exist because when a bad thing happens, the injured party may be partly responsible. For someone planning for retirement, the bad thing at issue is too much debt and too little savings. Through low interest rates, the Federal Reserve is responsible for X% of the problem.

Though ex-Fed chief Bernanke doesn’t seem to see it that way—in a dinner conversation with hedge fund manager David Einhorn, he asserted that raising interest rates to benefit savers wouldn’t be the right move for the economy because it would require borrowers to pay more for capital. Well, there you have it. And there’s nothing you can do about that X%. You can, however, reduce or eliminate your contribution.
In other words, you don’t have to be collateral damage; you can affect how your life plays out.

Money Lessons from Zen Buddhism

 

This might sound like a “duh” statement, but it bears repeating from time to time. Inheritance windfall from that great-aunt in Des Moines you’d forgotten about aside, there are two ways to eliminate debt and retire well: spend less or make more.

Rising healthcare costs, emergency car repairs, and the like are real impediments to reducing your bills. Costs rooted in attempts to “keep up with the Joneses,” however, are avoidable. Those attempts are also futile. A new, even richer Mr. Jones is always around the bend.

Instead of overspending for show, make like a Buddhist and let go of your attachment to things and your ego about owning them. Spring for that Zen rock garden if you must and start raking.

One of the wealthier men I know drove around for years with a gardening glove as a makeshift cover for his Peugeot’s worn out, stick shift knob. It looked shabby, but this man wasn’t a car guy and had no need to impress. As far as I know, the gardening glove worked just fine until he finally donated the car to charity and happily took his tax deduction. Maintaining your car isn’t overspending, but you catch my drift. Dropping efforts to show off can benefit us all.

That said, keeping up isn’t always about show. You may feel pressure to overspend just to be able to enjoy time with your friends and family. Maybe you can no longer afford the annual Vail ski week with your in laws or the flight to Hawaii for your nephew’s bar mitzvah. Maybe your friends are hosting caviar dinners, but you’re now on a McDonald’s budget and can no longer participate.

Spending less in order to stay within your budget can mean missing out on experiences, not just stuff. If you’re in this camp, there’s no reason to hang your head. As I mentioned above, you can spend less or you can make more. The latter is far more fun.

An Investment Strategy to Prevent You from Becoming Collateral Damage

 

While it’s tempting to start speculating with your retirement money, resist. If you have non-retirement dollars to play with and the constitution to handle it, carefully curated speculative investments can give you a welcome boost. However, if all of your savings is allocated for retirement, just don’t do it.

Unless you’re still working, how, then, can you make more money in a low-interest-rate world? At present, my team of analysts and I recommend investing your retirement dollars via the 50-20-30 approach:
  • 50%: Sector diversified equities providing growth and income and a high margin of safety.
  • 20%: Investments made for higher yield coupled with appropriate stop losses.
  • 30%: Conservative, stable income vehicles.
No single investment should make up more than 5% of your retirement portfolio.

Whether you’re designing your retirement blueprint from scratch or want to apply our 50-20-30 strategy to your existing plan, the Miller’s Money team can help. Each Thursday enjoy exclusive updates on unique investing and retirement topics by signing up for my free weekly newsletter.

Don’t let the Fed’s anti-senior and anti-saver policies unravel your retirement.  

Click here to start receiving Miller’s Money Weekly today.



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Tuesday, April 22, 2014

How to Momentum Trade Gold & Silver Stocks

Back on April 9th I posted a short tutorial on how to momentum trade gold along with my short term gold forecast.

Today I wanted to do a follow up video for my gold market traders for three reasons:


1. I had lots of great feedback from traders taking advantage of what I showed to profit in the past week.
2. To show you how and why this strategy works better with gold stocks and silver stocks.
3. To provide my short term gold forecast so you are on the right side of the market for next week.
4. Also you should see my major long term Gold Forecast



 

Get my gold forecast and gold trade alerts at The Gold & Oil Guy



See you in the markets!
Chris Vermeulen


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Sunday, February 2, 2014

What are Business Development Companies?

By Andrey Dashkov

Business Development Companies (BDCs) are publicly traded private debt and equity funds. I know that description isn’t terribly sexy, but keep reading and you’ll find there’s a lot to be excited about.


BDCs provide financing to firms too small to seek traditional bank financing or to do an IPO, but at the same time are too advanced to interest the earliest-stage venture capitalist. These companies are often near or at profitability and just need extra cash to reach the next milestone. Filling this void, BDCs provide funds to target companies in exchange for interest payments and/or an equity stake.

BDCs earn their living by lending at interest rates higher than those at which they borrow. Conceptually, they act like banks or bond funds, but with access to yields unlike any you’ll see from a traditional bond fund. The interest rate spread—meaning the difference between their capital costs and interest they charge their clients—is a major component of their business.

Oftentimes, a BDC will increase its dividend when market interest rates have not changed. Like a bank, the more loans it has in force, the more it profits. Increasing its dividend payout will generally have a very positive effect on its share price.

Unlike banks or many other traditional financial institutions, however, BDCs are structured to pay out more than 90% of their net profits to the shareholders. In return, BDCs don’t pay any income tax. In essence, their profits flow through to the owners. Many investors like to own BDCs in an IRA to create tax deferred or tax free income. The opportunity to use them for tax planning purposes, access to diversified early stage financing, and the impressive dividend yields they deliver make them a perfect fit for the Bulletproof Income strategy we employ at Miller's Money Forever.

The Clients

 

As a business model, BDCs emerged in response to a particular need: early-stage companies needed funding but couldn’t do it publicly due to their small size. At the same time, these companies didn’t match the investment criteria of so-called angel investors or venture capital providers. Enter the Business Development Company.

BDC teams, through expertise and connections, select the most promising companies in their fields and provide funds in return for a debt or equity stake, expecting gains from a potential acquisition scenario and a flow of interest payments in the meantime. The ability to selectively lend money to the right startup companies is paramount. It makes little difference how much interest they charge if the client defaults on the loan.

With limited financing options, BDCs’ clients may incur strict terms regarding their debt arrangements. The debt often comes with a high interest rate, has senior level status, and is often accompanied by deal sweeteners like warrants which add to the upside potential for those with a stake in the borrowing company.

In return for these stringent terms, the borrower can use the funds to:

•  Increase its cash reserve for added security;

•  Accelerate product development;

•  Hire staff and purchase licenses necessary to advance R&D, etc.

•  Invest in property, plant, and equipment to produce its product and bring it to market.

Turning to a BDC for funds allows a company to finance its development and minimize dilution of equity investors while reaching key value adding milestones in the process.

What’s in It for Investors?

 

In addition to the unique opportunity to access early-stage financing, we like BDCs for their dividend policy and high yield. The Investment Act of 1940 requires vehicles such as BDCs to pay out a minimum of 90% of their earnings. In practice, they tend to pay out more than that, plus their short term capital gains.

This often results in a high yield. Yields of 7-12% are common, which makes this vehicle unique in today’s low yield environment. The risk is minimized by diversification—like a good bond fund, they spread their assets over many sectors. This rational approach and the resulting income make the right BDC(s) a great addition to our Bulletproof Income strategy.

BDCs and the Bulletproof Income Strategy

 

In short, BDCs serve our strategy by:
  • Providing inflation protection in the form of high yields and dividend growth;
  • Limiting our exposure to interest rate risk, thereby adding a level of security (some BDCs borrow funds at variable rates, but not the ones we like);
  • Maintaining low leverage, which BDCs are legally required to do;
  • Distributing the vast majority of their income to shareholders, thereby creating an immediate link between the company’s operating success and the shareholders’ wellbeing… in other words, to keep their shareholders happy, BDCs have to perform well.

How Should You Pick a BDC?

 

Not every BDC out there qualifies as a sound investment. Here’s a list of qualities that make a BDC attractive.
  • Dividend distributions come from earnings. This may sound like common sense, but it’s worth reiterating. A successful BDC should generate enough quarterly income to pay off its dividend obligations. If it doesn’t, it will have to go to the market for funds and either issue equity or borrow, or deplete cash reserves it would otherwise use to fund future investments. An equity issuance would result in share dilution; debt would increase leverage with no imminent potential to generate gains; and a lower cash reserve is no good either. We prefer stocks that balance their commitments to the shareholders with a long term growth strategy.
  • The dividends are growing. This is another characteristic of a solid income pick, BDC or otherwise. Ideally, the dividend growth would outpace inflation, in addition to the yield itself being higher than the official CPI numbers. This growth can come from increasing the interest rate spread and also having more loans on the books.
  • Yields should be realistic. We’d be cautious about a BDC that pays more than 12% of its income in dividends. Remember, gains come from the interest it receives from the borrowers. Higher interest indicates higher risk debt on a BDC’s balance sheet, which should be monitored regularly.
  • Fixed-rate liabilities are preferred. We need our BDC to be able to cover its obligations if interest rates rise. Fixed rates are more predictable than floating rates; we like the more conservative approach.
  • Their betas should be (way) below 1. We don’t want our investment to move together with the broad market or be too interest-rate sensitive. Keeping our betas as low as possible provides additional opportunities to reduce risk, which is a critical part of our strategy.
  • They are diversified across many sectors. A BDC that has 100 tech companies in its portfolio is not as well diversified as a one with 50 firms scattered across a dozen sectors, including aerospace, defense, packaging, pharmaceuticals, and others. Review a company’s SEC filings to see how many baskets its eggs are in.

Wrap up......

 

Right now, BDCs look very interesting to income-seeking investors. They provide excellent yields, diversification opportunities, and access to early-stage companies that previously only institutions enjoyed. They also fit in with Miller Money Forever's Bulletproof Income strategy, the purpose of which is to provide seniors and savers with real returns, while offering maximum safety and diversification.

Catching a peek our Bulletproof portfolio is risk-free if you try today. Access it now by subscribing to Miller's Money Forever, with a 90-day money-back guarantee. If you don't like it, simply return the subscription within those first three months and we'll refund your payment, no questions asked. And the knowledge you gain in those months will be yours to keep forever.


Posted courtesy of our trading partners at Casey Research


Sunday, November 24, 2013

Free webinar: How to Boost Your Returns With One Secret ETF Strategy

Join our trading partner John Carter of Simpler Options this Tuesday evening, November 26th, for his FREE webinar "How to Boost Your Returns With One Secret ETF Strategy".

It all gets started at 8:00 p.m. eastern but get registered right now as there is limited seating and Johns wildly popular webinars always fill up right away.

If you watched this weeks new video you have an idea of what we are up to. And how we are trading ETF's in such a way that the market makers can not get the upper hand on us. In this weeks class John will be taking his methods to another level. And he is sharing it ALL with you.

In this free online class John will share with you....

    •     A Powerful Simple Strategy for Trading Options on ETFs

    •     The SAFE Levels to Take Trades

    •     How to Minimize Your Risk

    •     The Very Best ETFs to use

    •     Which ETFs You Have to Avoid Like the Plague

           And much more...

Simply click here and visit the registration page, fill in your info and you'll be registered for Tuesdays FREE webinar.

See you on Tuesday,
Ray's Stocks World


Watch "How to Boost Your Returns With One Secret ETF Strategy"

 


Thursday, November 7, 2013

Who is Picking Stocks for These Fund Managers?

When successful fund managers make it a daily practice to sit down and review the trades and trading techniques of this staff of traders.....you have to wonder why.

But I’ve gotta say, after watching this presentation on how to select the highest probability stocks for the strongest expansion moves – now I know why these guys have been the “go to” people behind several Wall Street pros and million dollar market makers. So why would you try this alone...they don't! But, you want to know the best part? They’ve just created a free video giving away their entire stock selection strategy.

Trust me, this is really good stuff!

Unfortunately, this video [2nd in a three part series] will only be up for a couple of days.

So stop everything you’re doing and watch it before you miss out.

Good trading!
Ray's Stock World

P.S. Inside this rare presentation, you not only get their proprietary stock selection strategy for narrowing down over 7,000 candidates to just under a dozen in 15 seconds – they’re also blowing the whistle on a dirty Wall Street secret that’s intentionally designed to keep you in the dark.

Click Here....to watch this presentation right away!




Friday, April 26, 2013

Are you trading with us....or against us?

Our trading partner Doc Severson is giving away one of his favorite options trading strategies. He just released a few copies of this new & revised version of  The Iron Condor Trading Strategy as a way to restore hope to struggling traders. This is not a promotional tease, it's a 100% fully disclosed options trading strategy.

Having looked at the new version myself I can tell you that you are going to want to reference this material over and over so be sure to save it to your computer while the link is still live.

With it's limited availability you'll want to click here to Download Your FREE Iron Condor Trading Strategy PDF file right away.

Doc offers a really unique perspective on options trading and chances are this will be the first time you've ever seen a trading strategy like this before. This system is so simple that you'll be able to go into the markets and trade it right away. This strategy is detailed in an easy to understand training video and blueprint with no strings attached.

Now you decide, are you trading with us or against us?

See you in the markets,
Ray's Stock World


Download Your FREE Iron Condor Trading Strategy


Saturday, May 19, 2012

Todd’s Secret Weapon, the 30 Minute Breakout Strategy

It was American writer Orison Swett Marden who observed, “A good system shortens the road to the goal.”

If you have a trading goal, but the lack a proven system for getting there, grab veteran trader Todd Mitchell’s step by step blueprint for setting up a profitable trade right now.

Get Todd's "30 Minute E-Mini Breakout, valued at $497"

He’s fine tuned and perfected a system for making money during just the first 30 minutes of the trading day. Yes, only 30 minutes....Please don’t miss out on this.

If you visit this website right now, you can download this strategy at no cost to you whatsoever. Everything you will need to know about trading this strategy is revealed to you. Nothing is being held back.

Take a few minutes to just click here and watch the 30 Minute E-Mini Breakout video and see what I mean.

Todd Mitchell is only making this free report and trading tutorial available for a limited time.

Get the free strategy now ... trade it tomorrow.