In times like these you really should think about diversifying your brokerage risk. Spread your capital around.
This way, if something unforeseen should occur, preventing you from gaining access to your current brokerage account, you will not be left out in the cold until things are straightened out. Months might pass. This could put you in a bad spot.
Listen, you simply cannot be too safe in a day and age when U.S. Treasury Bills yield a fraction of one percent. The risk of calamity is very real... Even Cramer agrees!
A Risk Averse Hedge Fund Anyone?
In the spirit of full disclosure I receive a $150 referral commission when you open and fund a tradeMONSTER account. Rather than pocketing this, I thought it better we put it to work in a closed-end hedge fund.
My thinking is along the following lines...
- Of the $150 referral commission I receive from tradeMONSTER, $100 will become your seed capital into the fund and $50 mine.
- Trading would mimic that presently made public via my Trade Notification arrangement, employing the buying and selling of ProShares Ultra ETFs as well as stock index options. Contrarily, the fund could be restricted to trading stock index options exclusively at such time as an anticipated period of heightened volatility appears present.
- Trading would commence either on a certain date or once a maximum number of stakeholders is met.
- The fund will cease operating upon reaching a set objective (say, $1,00,000) at which time the proceeds will be divided among its stakeholders.
A Zero Risk Opportunity
With every indication the stock market is at great risk of suffering a terrible loss over the next few years this raises the specter of a wildly profitable, speculative opportunity trading stock index options, wherein a tiny stake can be multiplied into a small fortune.
Thus, the ideal stakeholder in this Risk Averse Hedge Fund might be someone with little or no experience trading options, because having skin in the game (albeit at no cost) offers a great way to discover the power of options in periods of heightened market volatility.
So, open a tradeMONSTER account, then send me an email indicating your interest in this proposed Risk Averse Hedge Fund.
* * * * *
© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.
There's an easy way to boost your investment discipline...
Get Real-Time Trade Notification!