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How to Make More Money Than I Do

Diary, Newsletter

By now, most of you have figured out that I love calling readers every day and milking them for ideas on how to improve my service.

Often they think I am an imposter, a telephone salesman, a machine, or an algorithm. It's only after listening for a few seconds that they recognize my voice from the biweekly strategy webinars and realize that it's the real me.

I don't do this to get renewals, because everyone renews anyway. Where else do you get a 62% annual return with no serious drawdowns?

No, I do it because the information I pick up from subscribers is golden. Some of my best Trade Alerts are inspired by reader questions.

One of my favorite Einstein quotes is that "There are no stupid questions, only stupid answers."

In fact, I have discovered that a lot of subscribers are making much more money from my service than I do.

I'll tell you how they do it.

First, let me remind readers that every Trade Alert I send out includes recommendation for a call or put option spread, a single stock, or an ETF.

The trading performance charts that we published are based on the options spread positions only.

1) Raise the Strike Prices

Move the strike prices up by a dollar. So instead of buying the Barrick Gold (ABX) September $15-$16 deep in-the-money vertical bull call spread, you pick up the $16-$17 call spread instead.

Generally you make a profit that is 50% greater on this higher spread than with the original recommendation. But you are also taking on higher risk.

When 90% or more of our Trade Alerts are successful (the hit rate has been 100% for the past three months), this has been a pretty good bet to make.

2) Buy the Call Options Only

Instead of buying the call spread, you buy the call option only in half the size.

When it works, your upside is unlimited. When it doesn't, you just write off the total value of your investment.

This is a great approach when the stocks I recommend take off like a rocket and double or more, as have Apple (AAPL), Tesla (TSLA), and NVIDIA (NVDA).

Option spread buyers leave a lot of money on the table with this scenario, but get lower performance volatility.

I have observed that many of my Australia readers pursue this approach, as they are fighting a 14-hour time zone disadvantage with the New York Stock Exchange. Not many want to trade at 4:00 AM.

The payoff is that they earn about double what I do trading the same stocks.

3) Buy a 2X or 3X Leveraged ETF

This is moving out even further off the risk curve.

Almost every one of the 101 S&P 500 sectors have listed for them 2X and 3X bull and bear ETF's. In theory, the best-case scenario for one of these funds is that they will rise three times as fast as the underlying basket.

In theory, I said.

By the time you take out management fees, tracking error, and execution costs, and wide spreads, you are more likely to get 2.5 times the basket appreciation, if not 2 X.

I normally steer investors away from 3X funds. But 401k traders, who are not allowed to deal in stock options, swear by them.

4) Trade Futures

This is a favorite of foreign exchange, precious metals, and bond traders. A futures contract can deliver up to 100 times the performance of the underlying currency, metal, or Treasury bond.

Get a good entry point, run a tight stop loss, and the potential gains can be astronomical.

Every year we get a couple of followers who earn 1,000% profits using our market timing for entry and exit point, and they always do it through the futures markets. Yes, that is a 10X return.

This is also a much higher risk, but higher return strategy. Your broker will present greater disclosure requirements and need a higher clearance level.

But potentially retiring in a year is ample bait for many professionals to go through with his.

5) Read the Research

I know a lot of you only buy this service only for our industry beating Trade Alert service.

But my decade long experience in watching readers succeed, or fail, in their executions is that the more research they read, the more money they make.

Don't try to skim though with a minimal effort.

It's really very simple. The more work you put into this, the more profit you take out.

Understanding fully what is happening in the markets, indeed the entire global economy, will give you the confidence you need to take on bigger positions and make A LOT more money.

There is no free lunch. There is no Holy Grail.

Having said all that, good luck and good trading.

Looks Like I Got Another One

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https://www.madhedgefundtrader.com/wp-content/uploads/2017/07/john-rifle-shot.jpg 485 363 Arthur Henry https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Arthur Henry2017-11-07 01:06:012017-11-07 01:06:01How to Make More Money Than I Do

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There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

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