Trading Strategy Considerations/Objections
These are some of the broadest, most liquid markets in the varying asset classes. Using them provides good exposure to a broad diversity of markets, thus reducing risk via asset allocation.
Simply put, there is no time decay. Options are wasting assets, which means their value declines over time—a phenomenon known as time decay. An options trader has to pay attention to time decay because it can severely erode the profitability of an option position or turn a winning position into a losing one. Futures, on the other hand, do not have to contend with time decay.
This would not produce higher returns but would increase trading costs as these funds are typically more expensive than passively managed stock or bond funds. The Cake Futures Trading Plan, is, in any event designed to be a supplement to a long-term buy and hold portfolio. The goal is to get strong signals and to enter with a set money management plan that identifies profit targets and has loss limits that meet your risk tolerance.
The uniqueness of this plan is The Cake Trend Identification Line. This indicates in a strong manner what the trend is showing, thus giving confidence at the point of entry. Also, the fact that this strategy is providing a monthly signal means that much of the “noise” of the daily markets is filtered out, giving a stronger more powerful entry signal.
This is a fair question. Simply put, I am looking to raise more trading capital as well as have a full-time gig to pay the bills. This is not inconsistent with the thrust of this plan, as I am suggesting it be a supplement to your long-term investing efforts not an income replacement. The better question for you is, does this plan offer value?
Every plan has a weak spot, stay away from anyone who would claim otherwise. The weak spot of this plan is that there are times during a serious runup or drop that a signal will not be generated because the price never pulls back to the short-term trend line, thus keeping you out of the market during what could be a profitable period. However, this is simply a facet of the fact that the signals are supposed to be conservative in nature. Better to be disciplined and safely profitable than suffer reckless losses. There is a variant of the money management plan than can safely help you offset some of this weakness.