August 17, 2017

Buy and Hold is A Crock – Cash is a Position – Diversify Through Strategies Not Stocks

The major market averages continue their struggle to push higher over the past three trading days. I still think the market pulls back to close the 9/1/10 gap over the next few months.

However, as I always say, all of the noise truly doesn’t matter to me, I trade market extremes and volatility. So, it doesn’t matter to me where the market goes or how it performs over the long-term. These are uncertainties that have zero statistical advantages.

I don’t diversify in stocks – I diversify in strategies. This is how to effectively invest your money. This is why I use the High-Probability, Mean-Reversion Strategy and the New Theta Driver strategy. It exposes me to a limited number of days in the market. I am often in cash. I only trade opportunities and the opportunities that I trade have to have statistical advantages.

Here is a great video of Entreprenuer Mark Cuban. Love him, or hate him one thing is certain – you can’t deny his success. While I think his options strategy of buying out-of-the-money calls and puts is a bit naive (I would love to speak with him about more effective options strategies as I know he would be responsive), Mark seems in line with what I have been trying to convey for years about investing. Cash is a position. Take advantage of extremes, etc. Don’t miss this video – very insightful. Check it out!

Theta Driver Options Strategy

I placed my first official trade in the Theta Driver options strategy Monday. For those of you still interested I have a few remaining spots left 8 to be exact.

I am very excited about my new income options strategy because I have said for years that diversifying your options strategies is the best way to make long-term consistent gains in the options market.

High-Probability Options Strategy

As you can see below there are not that many ETFs in an extreme state. However, I have my eye on DBA at the moment. If the agriculture ETF opens higher tomorrow there could be a trigger in the strategy. This could be the first signal for August. Remember, it is the long-term results that we are after. There will be slows periods just like there will be periods of heavier trading. I do not force trades. Subscribers stay tuned for an email alert/tweet if the trade indeed comes to fruition.

Market Mumbo Jumbo

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