Wednesday, 17 October 2012

In trading we call it an 8 bagger

As many of you know I am an avid trader of stocks and currencies aka equities and forex. When trading you have a certain amount of pre-determined risk. We call that a risk unit or R. When a trade goes well you want it to run 3, 4, 5 times your R in order to make up for the inevitable 1-R losses that happen. On occasion you hit a home run and get an 8 bagger. That's 8 times your R unit. I've seen numbers as high as 50R in a single trade, in a single day. That's usually a gap trade but I digress.

Risking money in the online world is really no different. You can see from the above paragraph how some of these companies can pay out 1% or 2% per trading day. They are averaging 10% to 20% or more per trading day. I'm still working on my trading skills. Meanwhile you and I can benefit from their efforts and profits.

We send money to Panama for instance and the guys at Felmina invest the money. They trade Forex as I do but with much bigger accounts. They manage their risk and let profits run. Here is a trade I did last week. You see you can make money whether the vehicle goes up or down as long as you are on the right side of the trade. Here I was betting on the EUR/USD currency pair to go down. The Euro fell in relation to the US Dollar. Good news in our economy. But the point is we made money when the euro fell. Lots of it too.


My point is that you have to manage your risk in these programs too. How? You need to be in several programs instead of just 1 or 2. You need to vary your compounding strategy. In many cases you can get larger returns by locking in a longer term. In Felmina for instance you can get an extra .04 percent for committing to a full 180 days. Just as a bank will give you more interest on a 2 year CD than on a 6 month CD, these programs give you a higher return for a longer term or commitment.

You can reduce your risk by having multiple accounts with different terms. You may have heard of laddering CDs. Think of this as laddering terms. Take for example a single program like Goldenarium. They have 3 plans. The bronze plan has a 90 day term but using basic compounding so at any time you can withdraw daily interest. At the end of the term, of course, you can take the principal and interest or re-invest some or all. The silver plan matures also in 90 days but you have no liquidity during the 90 days. Everything is compounded. Bronze pays up to 2.45% and Silver pays up to 3% depending upon deposit.

You may remember "The James". Here we have a strategy to reduce risk by banking daily interest in an effort to get a return a principal as soon as possible. You give up return for safety. In that example the difference was about $85,000. 

The other day I was thinking about how to balance risk and reward in these programs as I do. Here's what I came up with.

#1 - Do your homework and join multiple programs.

Don't put all your eggs in one basket as they say. Diversify. I am in 5 fine programs right now.

My Top Five

#2 - Vary your terms and withdrawal strategy.

I'll use Goldenarium as an example here. Let's look at $1,000 invested in the Bronze, Silver and Gold plan.
$1,000 would fall under Bronze Level 2 which pays 1.4% per day with liquidity. You may compound a while but lets just say you didn't. You pulled a "James" and took daily interest from day one. $1,000 at 1.40% generates $14 per day. So you would break even in 71 days. Ho hum. Your balance at the end of term would be $2260. That's a 226% retrun.

If you just let the $1,000 compound in the Bronze plan after 90 days it grows to $3494 or 349%
Silver and Gold have no liquidity but different terms. At $1,000 Silver Level 2 pays 2.20%. Gold runs for 120 days and pays 2.40% at that level.

A $1,000 in Silver grows to $7088 and in Gold it becomes $17, 218.

Just look at the difference. $2260, $3494, $7088 or $17,218.

What do you see? I see a way to invest $3,000. Drop $1,000 in to each plan. Bronze level 2 grows to $3494 - that's your return of principal with the peace of mind that you could withdraw some daily interest if you needed to. The Silver plan matures at the same time as the Bronze, 90 days and the $7,088 is all profit. The Gold plan runs a few more days and make a massive return. Now you can re-evaluate your goals, capital, and risk tolerance. 

You started with $3,000. Take that $3,000 and a $3,000 gain and put it in a safe place. A CD or money market account, etc.  $3,494 + $7,088 + $17,218 is $27,800. Take $6,000 out. You still have doubled your money and have $21,800 is risk capital. Spread it around and do it again.

That's my new plan for January 8th. I think I'm going to leave $5,000 in Felmina, enhance it and let it grow to $171K or so by October 2013. We can then have a mortgage burning party. Yea!

I'm going to pocket some and put the bulk of it to work. Nice problem to have. What to do with $33,000. Still working on this. 

Leave $5,000 in Felmina at 2.1%. 
Drop $5,000 in Profitable Sunrise! at 2.17% 
Drop $5,000 in Goldenarium Gold at 2.7%
Purchase advertising in Banners Broker with $5,000
Drop $5,000 in ProfitClicking
and bring the rest home  $8,000

The Felmina grows to over $171,000 in 180 business days. My second term.
Profitable Sunrise! should grow to $47,000 by June and gives me daily available interest of over $1,000
Goldenarium Gold reaches $122,299 in 120 business days or about July - factoring in holidays.
Banners is harder to project but should not only grow nicely but also help recruit new members all around.
ProfitClicking is a monster. Liquid from day 1. 2.0% weekdays, 1.0% on weekends. No holidays. Big return.

If 4 out of 5 go bust I'll still be OK. Net net I'll probably still be looking at a 20 bagger in 6 months. If they all pan out... look out. Debt free and a million dollar income. Yee haw.

Thoughts?


 
Ward Hammond - Regional Rep
geo: Greer, South Carolina (USA)
cell: (864) 325-0277
skype: ward.hammond
email: ward.hammond@gmail.com
bloghttp://worldprofitwp.blogspot.com/
splashhttp://www.tinyurl.com/123mm


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You are just a click away. Claim your FREE gift Now!  CLICK HERE WHY BUY TRAFFIC & GET PAID? Risk-free An investment with a certain rate of return and no chance of default. Although various investments (for example, savings accounts or blue chip stocks) meet these requirements, a Treasury bill is the most common example of a riskless investment. Risk-free investments have such a low level of risk that it may be ignored.SimpleAll our loan operations are insured and each one has a security which is equal to the amount of loan plus the interest on the loan. We use the funds invested by our members. So all your investments are insured by default.Options About A good name is better than precious ointment, and the day of death than the day of one's birth. Ecclesiastes 7:1 Good Day, my name is Roman Novak, I am the owner and founder of Profitable Sunrise. I hope our services will be of interest to you. Since you are reading this, I assume that you have already shown interest. We are a team of professionals that will lead you to prosperity and peace. If you follow us, you will shortly praise the Lord that he led you here. By putting your money to work with us, you will make the right decision. You will not only increase your savings, but will also help those in need. Allow me to introduce my team to you. My brother Radoslav Novak is a lawyer and apart from the legal issues is responsible for the marketing. Ruth Ellington is our accountant. Nosuke Koyama is the technical expert responsible for the smooth operation of our website. Everyone is welcome to join us. Our doors are and will always remain open to you.Invest with us I have shown you all things, how that by so laboring ye ought to support the weak and to remember the words of the Lord Jesus, how He said, ‘It is more blessed to give than to receive.’ Acts 20:35 Our investment model is based on short-term investments and generates income way greater than most regular investment models do. Our business model combines tried and tested investments with certain state-of-the-art innovations that bring the risk of loss to a minimum. We have been doing this for over 6 years now and successfully lived through the stock market turmoil several years ago. Moreover, we have grown big and confident enough to start safely offering our services to private investors and companies. We provide short-term loans to numerous companies throughout the United States. This way we not only help those companies, but also help revitalize the national economy and create more jobs that are so desperately needed. Unfortunately, we cannot help every company as we have to make sure that we do not put our investors' money at excessive risk. In addition to that, our investments are insured by a leading investment bank. We allocate a significant amount of our earnings to charity as there are so many people out there that need help. Do you need cash to finance your business or re-finance your current loans? More information about the loans can be found here. 
Ward Hammond trader father family man

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