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Statement of principles

What makes us different from other trading websites and investment newsletters?

  • Value. Your monthly subscription costs about as much as you pay your broker for one or two option trades.
  • Accountability. When we highlight the big returns and monthly averages that our service produces, you can be confident that those numbers include our mistakes, too. We believe in learning from our mistakes, not pretending they don’t exist!
  • Exclusivity. You can’t make trades with 10,000 other people - it just doesn’t work! We limit our membership to give everyone a chance to pick up the positions we spot.
  • Community. Come for the great calls…stay for the great conversation. Our active daily forum is unique – no other investment newsletter or trading service has such a busy community of informed members offering their own opinions, ideas, and input.
  • Phil is often an active participant, not just a name on the marquee. If you’re an amateur or professional trader, you’ll find that our members are some of the smartest and most experienced around. No matter who you are, you’ll benefit from the dialogue our subscribers have with each other every single day.

A message from Phil:

There’s nothing I hate more than people who tell you what you would have made if you had done some perfect entry and perfect exit on a trade they vaguely recommended out of dozens that didn’t work out.

It’s never going to happen here!

Not only do we publish a spreadsheet of every single entry and exit with dates (often with stop prices) but you can review every single word we’ve said since November of 2005 and see for yourself what you think of our picks!

Do I need your credit card so you can look? No, why should I - the picks should stand on their own. If you think they would have helped you in the past than you may decide on your own whether you want to sign up for our daily live site.

See our Performance section for a real rundown of our last 6 monts worth of trades! How can we give all that away for free? Because our performance is not a fluke, we do this all the time and we’re pretty sure there will be a brand new trading opportunity for us tomorrow - the old ideas you can keep with our compliments!

This is not your run-of-the-mill dry, financial reporting! According to Google, there are 11,500,000 stock picking pages on the web and they all think they’re smarter than us… We don’t try to out shout the masses - we just try to have some fun and make some money!

Now I’ve been told by marketing experts that I need to put in giant letters that say we make more trades, more often than most newsletters (we do), that I should make a big deal about how we try to pick real, well-known companies that are fairly liquid so you can get your money in and (more importantly) out and I’m supposed to make a big deal about beating the markets month after month (we do).

I’m not going to do that. When I used to look for a financial newsletter I would always read that stuff and go “blah blah blah” in my head until I found some kind of sample of the actual numbers.

Well, we give you the numbers. All the winners and all the losers, not just selected “samples”. There’s a weekly update free, right on this site and you can take a look most Fridays or Saturdays for yourself and you can check out my style for yourself and decide if it would annoy or please you to read me every day.

All right, so I’m not good at marketing - but that’s not why you’re here is it?

I am an amateur investor, like you, who just got sick of all the BS I was getting from all the “professional” services and I decided to start my own. I’m not a broker or a pro trader and you would be nuts to make any trade you read about here without consulting a professional financial advisor as to its suitability for your portfolio… But, if you like to talk about stocks and pick up some tips that might work without all the hype and nonsense - come join us!

So why listen to me? I do have sort of a knack for spotting trends and picking winners and I’m happy to share what I know with you. No other reason. Nothing bad will happen to you if you don’t sign up with us - there is no pressure and this is not a limited offer. Come back any time we are accepting new members - the door will always be open.

Looking forward to meeting you,

- Phil

 

Phil's Favorites

Case for coordinated rate cut

Willem Buiter argues that world market conditions call for Central Banks to cut interest rates now.  Courtesy of Willem H. Buiter, Professor of European Political Economy, writing in the Financial Times' blog section.

The case for a coordinated rate cut

With the collapse of privately owned and lightly re

more from Ilene

Trading Goddess



more from Goddess

The Options Report

By Andrew Wilkinson and Rebecca Darst



No end in sight as declines at European bourses replicate 1987 crash

Today’s tickers: Today’s tickers: : VIX, RIO, C, XLF, STJ, SWY, EAT, PX & JBHT

VIX – CBOE Volatility index. – Options volume is pretty heady in the fear gauge today, which stands at elevated crash-time readings. You have to look back on a monthly or weekly chart to see levels above a reading of 50. Today the VIX is 18% higher at 53.28, which has seen the call side of the options market most heavily traded today. It looks like some profit taking may have been behind the 35 call strike where 23,000 out of the 25,700 lots traded was sold at the bid. Open interest here of 74,142 contracts has been declining over the last week indicating some bright investor may have reached their goal. At the October 37.5, 50 and 55 strikes more buying was evident as investors clamored for protection higher up the ladder. It appea

more from Andrew

Stock and Option Trades
(Advanced option strategies)

Fuzzy Math!

Have you ever seen literature from a fund posting attractive gains and comparing its performance to that of the benchmark S&P 500?  Have you ever investigated how the figures listed were calculated?  If not, you will definitely want to read on! Let's take a fairly representative example.  Fund Manager Joe Bull, for example, is very good at generating profits in bull markets.  Let's say Joe Bull made 20% in each of the years 2004, 2005, 2006 and 2007.  But Joe Bull does not have the toolset to survive bear markets and finds in 2008 that he is down 30%.  What has Joe Bull's return been over 5 years? It turns out, the answer to that questions depends greatly on what Joe Bull wants to report as his return!  Why? Because little regulation exists to prevent Joe Bull from choosing any number of mathematical approaches to calculate his return! For example, fund manager Joe could simply take the average of his returns over 5 years.  This would be calculated as the sum of 2 more from Option Trades

Option Sage
(Strategy and Education)

Trivia Time!

Let's say you decide to deposit $100,000 into a brokerage account.  You decide you will check your portfolio on a weekly basis.  Now let's further assume that the first week has passed and you are about to log in to your account.  But before you do, you are told that one of two things has happened in the past week.

[1]  Your portfolio went up $10,000 and then dropped $10,000

[2]  Your portfolio went up 10% and then dropped 10%.

So, the trivia question is:  In case [1], what should you expect your account value to be and is that the same figure as in case [2]?

If you answered $100,000 in case [1], you would be absolutely correct!  If you answered that this is the same as in case [2] you would be absolutely incorrect!  Why?  Well let's take a look at what happens when the portfolio rises 10% first; it goes from $100,000 to $110,000.  But then we're told it drops 10%.  10% of $110,000 is $11,000 more from Option Sage

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