Despite what many analysts and financial planners would have investors believe, trading through the use of strategy that focus on protecting capital first and then making a profit second, can build a portfolio quickly and with safeguards in place.
The idea that buying something and hoping in the end that will return a handsome profit for the risk taken is not an investing strategy. There is no safety net, no safeguards to protect capital that is placed at risk.
This is not a method I would ever use since it is full of risk. This is as bad as the idea that young people can invest in risky assets because they are young and have years ahead of them to make up for losses. In fact that is the worst piece of advice for young investors. Starting young and investing properly means years of compounding returns that will grow a portfolio quickly. Imagine starting investing at age 30 and then at age 45 sitting with losses or no gains because “at one time you were young”. Consider instead starting at 30 and earning even just 8% a year through strategies that can grow capital and protect it. Who will end up being the multi-millionaire at age 45? The investor who risked his capital or the investor who used strategies that protected his capital while also growing it?
Case in point is the Trade Ahead Of Earnings Strategy. It is rare when this strategy does not grow capital. It definitely offers a very high level of protection. The trade started yesterday which I outlined before the markets open on Wednesday, was closed today with a return of 87%. Not bad for a trade that was strongly protected but also allowed capital to return a profit, once protection was in place.
Trade Ahead Of Earnings Strategy Discussion
For investors learning the Trade Ahead Of Earnings Strategy, this article looks at the trade in American Airlines Stock (AAL) and discusses the steps done in closing the trade and locking in profits.
The rest of this trade strategy article is for FullyInformed Members..
Learning The Trade Ahead Of Earnings Strategy
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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