Some folks will say that newsletter writers should ‘eat their own cooking’. That is, they should invest their own money in the recommendations they issue to their readers.
Our parent company has had a long-standing general rule on this. While it isn’t illegal to invest alongside readers (providing you disclose it), it’s generally unwise.
Your editor has always agreed with that view. In the 20 years we’ve been in this business, we’ve never once invested in a stock we’ve recommended.
As a publisher of others’ content, the rule has been slightly more flexible. As long as we aren’t involved in selecting the investment and have no influence over whether it’s a buy or a sell, and we keep in line with the company trading rules, we are free to invest alongside readers.
Over the past 20 years, we’ve done that sparingly. Mostly because it’s fraught with the potential for danger – especially if we’ve bought a stock and the editor and marketers decide they want to feature that stock in a sales promotion.
It could give the appearance of ‘front-running’, which is to say, benefiting from a type of insider trading. That wouldn’t be a good look.
But that’s not the reason your editor won’t follow the recommendations in our new soon-to-launch options trading service.
There’s a much simpler reason.
Don’t get us wrong. We love the options market. We became an accredited options advisor back in 2005. We’re qualified to advise on both basic and complex option strategies.
Plus, over that time, we’ve traded in and out of options positions many times. We’ve made money and lost money.
But the simple reason we won’t follow the strategy of the service we’re about to launch is because it’s not the right strategy for our investment portfolio, nor for our investing style.
The fact is that your editor is far too conservative. We always have been when it comes to our personal investments. In fact, if we implemented a rule saying we could only endorse ideas that we invest in ourselves, we would only be able to recommend dividend-paying investments (and gold and silver).
That wouldn’t be a great business. And it wouldn’t be right to deny others the opportunity to invest in riskier assets – such as crypto, small-cap stocks, or certain options strategies.
Bearing in mind, the options service we’re about to launch has an impeccable track record. We explained that last week. For every loss, it has generated around 2.5 wins. And the average win so far has far exceeded the average loss.
But that’s a key point. In order to make the most from any options trading service, you have to take every trade. You can’t pick and choose. That’s the same with any trading service.
Because of that, you have to be willing to take losses here and there. You even have to be willing to go through losing streaks – in the same way, you’ll be happy to go through winning streaks.
Every good trader knows that. Every good trader understands that. Every good trader who wants to make money from trading is willing to do that.
Your publisher isn’t a good trader. We’ve tried many times over the years, but we just don’t have the temperament for it. Even when we’re following the advice of great traders, we just can’t do it.
We always end up taking profits and losses too early… or too late…basically, we end up doing everything wrong!
We eventually realised that even with the best trading ‘mentor’, it wouldn’t help us overcome our mental weakness as a trader.
We say all this as a word of encouragement and caution to you. If you have the mental strength to be a trader, there’s no question our upcoming trading service could be beneficial to you – the track record to date suggests that.
Conversely, if you have a similar mental weakness as your editor, the track record will likely be irrelevant… as you’ll make all the mistakes that will prevent you from making the most of the service.
This is where we go ‘inside baseball’, and the general issue of launching new services. We’ve received a comment or two to the effect of ‘Not another new high-priced service.’
We don’t apologise for that. It’s an important part of our business. It’s possible you may have figured things out already, but we publish investment services at two different price ranges.
Our entry-level services normally cost below £100 per year for the first-year discounted price. These services are designed to appeal to as broad a range of investors as possible.
They will usually (but not always) be relatively conservative in terms of investment risk and will incorporate a relatively straightforward investment strategy.
That contrasts to our premium level services. They will usually be riskier in terms of investment risk, and will normally incorporate a more complex investment strategy.
This will include options services…trading services…more advanced cryptocurrency ideas…currency trading…microcap or small-cap services, where we may need to restrict membership numbers due to trading volume concerns.
Or it could be for a ‘special situation’ opportunity… to exploit an investment opportunity or idea that may have a finite or limited timeframe.
The point is, these premium services aren’t for everyone. In fact, each premium service is normally suitable for no more than 10% of our customer base.
That’s why you’ll see us periodically launch a new premium service as various market circumstances and factors change.
That brings us to our final point.
Just because we launch a new service, it doesn’t mean you should subscribe to all of them – you probably shouldn’t. Instead, you should weigh up each service according to your investing style and your investing strengths.
The type of investor who is suitable for our new options service is someone who is the direct opposite of your editor.
If you have trading discipline, this service could be for you.
If you have trading patience, this service could be for you.
If you can follow detailed instructions and implement them, this service could be for you.
If you understand that the occasional losing trade is the price you pay for access to winning trades, this service could be for you.
We repeat, a premium options trading service isn’t for everyone. But neither is it the kind of service you should automatically dismiss without thinking about it fully.
As far as we’re concerned, the track record isn’t in question… and therefore shouldn’t be the reason for declining the invitation to join.
The only issue for you to address is whether you have the mental strength to be a part of it.
Cheers,
Kris Sayce
Editor & Publisher, Investor’s Daily
P.S. The launch is coming up fast — and the earlier you’re on the list, the better prepared you’ll be. Get on the list here.
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