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  • Seeking Alpha Strikes A Victory For Free Speech [View article]
    Honestly, I'm not sure how it is Victory For Free Speech. If someone posts accurate information, why would he be afraid to do it under his real name? On the other hand, if someone posts articles just to manipulate stocks (both up and down), why would he be allowed to hide behind his anonymity? Wouldn't writers be more careful about the accuracy of their articles if they had to write under their real identity?
    Jul 7 01:18 PM | 3 Likes Like |Link to Comment
  • 6 Signs Of A Correction [View article]
    Arbitrage is different - institutional investors have huge advantage in this area due to lower commissions and super fast computers. With options, there are different levels of expertise. Many individual investors are using options very successfully for different purposes, like hedging or additional income.

    To me, even a simple strategy like buying quality stocks should be substituted with naked puts. 90% of the time, the returns will be higher. Unless you have a small portfolio and it's a high priced stock where you cannot buy 100 shares, why would you even buy a stock and not naked put?
    Jul 7 09:01 AM | Likes Like |Link to Comment
  • 6 Signs Of A Correction [View article]
    Well, I wouldn't recommend to stay away from options - you just have to learn how to use them correctly. I'm trading exclusively options since 2008 and making very good returns. But there is a learning curve.

    I'm trading non-directional strategies only. Not trying to predict the direction. Many people think you cannot make good gains with non-directional trading. Just take a look at my returns to understand how wrong they are - http://bit.ly/MXsvon.
    Jul 7 02:15 AM | 1 Like Like |Link to Comment
  • 6 Signs Of A Correction [View article]
    Good comments leopard.

    Unfortunately, most people use options in a completely wrong way. When you use options as a directional bet, you should be right 3 times: direction of the move, size of the move and timing. Many times the stock moves in the right direction, but not fast enough, and time decay kills the trade. Other times you buy the option during times of high volatility, then volatility comes down and you lose, even if the stock moved in your favor.

    From time to time, those directional bets can produce nice gains, but it's very difficult to make money this way month after month, year after year.
    Jul 6 06:48 PM | 1 Like Like |Link to Comment
  • 6 Signs Of A Correction [View article]
    Tony,

    Yes and no - this strategy can be used with ETFs as well. The main purpose of it is to avoid the big drawdowns that come once in every few years.

    The impact of not experiencing losses in down market years, while only slightly lagging (if lagging at all) in positive and neutral years, is astronomical over any extended period of time. Utilizing the Anchor strategy over a number of years, particularly if any of those years are bear markets, should lead to the strategy significantly outperforming the markets as a whole, as back-testing has demonstrated. Even in prolonged bull markets, the returns should still be positive and lag negligibly behind. The peace of mind which comes with being fully hedged more than compensates for the potential of slightly underperforming the market as a whole in prolonged bull scenarios.
    Jul 6 06:43 PM | Likes Like |Link to Comment
  • 6 Signs Of A Correction [View article]
    Corrections usually come when nobody is expecting them. It's a very difficult task to try to catch the top and predict the exact timing of the correction. This is why we advise our members to be hedged all the time, while trying to pay for the hedge so it's free or almost free. This way we don't need to spend our time on different "indicators" - most of them are no more than 50/50.

    Our Anchor strategy is very simple:
    Step 1 - Select good stocks or ETFs
    Step 2 - Fully hedge
    Step 3 - Earn back the cost of the hedge

    No market timing. No guesses. This way you don't need to have any cash - in fact, you can be invested 150% for leverage and still not to be worried about market correction.

    Another good advise is to be diversified. But not diversified as most advisers think:

    "“If your investment adviser has you in a small-cap fund, a mid-cap fund, a large-cap fund, a foreign investment fund, a commodity fund, a bond fund, and a high dividend fund such as a REIT or pipeline, and tells you that you’re adequately diversified, find a new investment adviser. In a market crash, ALL of those asset classes will get hammered. Sure, on a week to week basis in a bull market you are diversified and relatively protected against company and sector risk. But you are horribly exposed to market risk, and the vast majorities of investment advisers either simply do not understand this or believe that “that’s just the way things are.” However no investor should accept that answer.”

    True diversification comes from using few different strategies, and embedding options into the mix:

    http://bit.ly/1mXCF9O
    Jul 6 12:51 PM | 1 Like Like |Link to Comment
  • Correction 2014: Are You Prepared? [View article]
    This is a mistake that most investors are making. They wait to buy protection till they need it - unfortunately by that time it's not cheap anymore. Protection should be bought when it's cheap. Do you wait to buy your home insurance till your house is on fire?

    There are many ways to own protection almost for free - http://bit.ly/1i9K990
    Jul 6 11:45 AM | Likes Like |Link to Comment
  • SteadyOptions 2014 Half Year Report: 95.3% ROI [View instapost]
    Dear 9coriolis,

    The performance page includes the full list of all trades. You can always plug it into excel, plug your commissions and see the results. The chart on the main page includes commissions.

    As mentioned on the subscription page, commissions would reduce the returns by 2-3% per month. The results would depend on your commissions structure.
    Jul 5 10:45 AM | Likes Like |Link to Comment
  • SteadyOptions 2014 Half Year Report: 95.3% ROI [View instapost]
    They could, but I still have to send the trades to them. Technically, I'm still doing the trading even if they actually place the trades in members accounts.

    Most people simply don't realize how dangerous auto-trading can be in fast moving markets if the trades are not placed directly by the person who is managing the trades. The delays can be critical and cause catastrophic losses.
    Jul 4 08:56 AM | Likes Like |Link to Comment
  • SteadyOptions 2014 Half Year Report: 95.3% ROI [View instapost]
    Please read my response:

    "Unlike SteadyOptions, they are managed by licensed investments advisers. That means that the trades are placed directly by Lorintine Capital, LP."
    Jul 4 08:05 AM | Likes Like |Link to Comment
  • SteadyOptions 2014 Half Year Report: 95.3% ROI [View instapost]
    Thanks.

    There are some issues with auto-trading that many people are not aware of. Here is how auto-trading works:

    Most newsletters send the broker emails including trade alerts and the broker's trade desk places the orders in the client accounts. In some cases (like auto-trading with Interactive Brokers), this is done through third party providers (Global Auto-Trading). Please read SEC Risk Disclosure on Autotrading.

    What are the risks of auto-trading?

    1. SEC considers newsletters that engage in auto-trading to be investment advisers. If the newsletter is not an investment adviser, by engaging in auto-trading they are breaking the law and are exposed to lawsuits.

    2. Is the newsletter a one man operation? What happens if that man gets hit by a truck or breaks a leg? Does he have a backup to continue trading your money? What if the trade(s) need to be adjusted or closed in a timely matter? Are you at risk of catastrophic losses if this happens?

    3. What if the markets starts to move fast? Will his broker get the email with trade instructions fast enough? What if the prices are significantly different by the time the broker tries to place an order?

    4. Do you understand the rationale behind the trades or you just trust the newsletter blindly to place the trades in your account?

    Those are some of the reasons why I cannot auto-trade SteadyOptions strategies. I'm not a licensed investment adviser, I cannot place the trades in members accounts and I'm just not ready to break the law like most other newsletters do.

    We do offer auto-trading for our other strategies. Unlike SteadyOptions, they are managed by licensed investments advisers. That means that the trades are placed directly by Lorintine Capital, LP. By doing that, we are eliminating the middle man (the broker's trade desk or GAT). This creates better and more reliable execution, especially in fast moving markets, and reduce costs. Most other competing services cannot do this because they are not licensed investment advisers. In addition, we have backup, so if for any reason, one of our advisers is unable to place the trades, he is backed up by another adviser who has full access to all accounts. In addition, all trades are placed and discussed on the forum, so you can have a full understanding of the rationale behind the trades.
    Jul 3 08:25 PM | Likes Like |Link to Comment
  • 6 Signs Of A Correction [View article]
    There are many ways to be protected against a correction and at the same time, not to give up too much of the upside potential. One of them is buying long term puts and sell short term puts against them at a certain ratio. See details here:

    http://bit.ly/1i9K990

    We have been doing this successfully for almost 2 years. Backtesting shows that this strategy would produce 4% GAIN in 2008. In strong bull markets, you are likely lag the market by few percentage points, but you are fully protected during bear markets.
    Jul 2 10:11 AM | 1 Like Like |Link to Comment
  • Correction 2014: Are You Prepared? [View article]
    What I did in 2003-2008 was not trading and not investing, but something in between. Well, I guess it depends on the definition of investing. If you define investing as buying and holding for 10-20 years, this is not what I did. I tried to buy good stocks and hold them for 1-2 years on average. And this worked pretty well (I made around 70%) - till 2008. Then I simply realized that if you just hold portfolio of long stocks, at some point you are getting killed. In 2008, there was nowhere to hide. No diversification would help you in 2008.

    Now, you say that for long term investors it doesn't matter - I disagree. A lot of retirement portfolios were destroyed in 2008. And it might take years to recover. Some portfolios will never recover. And if they do, it might be just when the next crisis will come.

    Think of it this way: on average, you can expect to make around 10% in the stock market. If you make 10%/year for 6 years and then lose 40-50%, you are hardly back to even. The current bull market is not typical, it doesn't happen very often.

    Hedge will reduce returns most of the time. But if used properly, you will lag the market only slightly. Our Anchor strategy lags the markets by 2-5% in strong bull years, and matches the markets returns in neutral to slightly positive years. But it returned +4% in 2008, compared to -38% of S&P 500. This is HUGE.

    What I'm doing with my non-directional trading is completely different. I don't depend at all at market direction. But of course this is not for everyone. It requires much more time and effort, but I'm a full time trader.

    And yes, I completely agree about why 90% of the investors lose money. They try to time the market, act on their emotions, etc. But even those who follow the "rules" will still experience severe drawdowns once in 5-7 years. Depending on their holding, time horizon etc. some will recover, some won't. This is why I'm such a big advocate of hedging.

    "Or would you say that properly used hedging strategies work. That would also mean that properly investing without hedging also works."

    Properly used hedging strategies might reduce returns most of the time, but they will help you dramatically when you need them (once in 5-7 years). Properly investing without hedging also works - most of the time, EXCEPT for once in 5-7 years, when without hedging, you are getting killed.
    Jun 10 08:52 PM | Likes Like |Link to Comment
  • Correction 2014: Are You Prepared? [View article]
    @BBwetrust,

    Skepticism is always good, as this industry is full of crooks and charlatans. So each claim should be checked and verified carefully.

    All our trades are posted to members forum in real time. Those are real fills, not hypothetical returns. They are also verified by pro-trading-profits and you can check the returns on their website.

    However, since we are talking about options strategies, they cannot be implemented in multi-million dollar accounts, so unfortunately I will not be richer by Warren Buffet.
    Jun 10 10:20 AM | Likes Like |Link to Comment
  • Correction 2014: Are You Prepared? [View article]
    @mjs_28s and @22643611,

    I believe you completely missed my point.

    Yes, many people make good returns without hedging. How many? Well, there are different statistics, but over 90% of individual investors lose money in the stock market in the long term. The main reason is that they might make nice returns for few years and then lose it all in a big down year like 2000 or 2008. If you are among the 10% - good for you.

    The impact of not experiencing losses in down market years, while only slightly lagging (if lagging at all) in positive and neutral years, is astronomical over any extended period of time. Of course the returns depend on many things - when you started is not the least important. Those who started in 2009 might afford some losses after accumulating nice gains. What about those who started at the peak (2000 or 2008)?

    I appreciate the advise about hiring PR person, but I just let my returns to be my PR. I also let my members to speak for me - http://bit.ly/P72HgM. SteadyOptions is ranked #1 out of 700+ newsletters.

    @22643611, when you said "anybody with a lick of sense can do well in a bull market." you probably missed the part where I mentioned that those returns have been achieved without taking any directional risk. I trade non-directionally, I DON'T CARE what the market will do. In fact, my best month was August 2011. And I actually have been trading since 2003, not 2011. I had pretty good success trading stocks in 2003-2008 and then lost huge in 2008. This was a wake-up call. I realized that I don't want to depend anymore on what the market does.

    If my previous post insulted anyone, my apologies, this was not the intention.
    Jun 10 10:12 AM | Likes Like |Link to Comment
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