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I am completely new to Options Trading. How do I learn about them?
We have had many members who have little or no experience trading options. Since we provide easy-to-follow and precise trading signals, many of our subscribers have little difficulty following our trade recommendations. However, it is always best that you have some knowledge of entering options orders before joining us.
I've never traded credit options spreads, but would really like to get started in it. Would I be able to follow your recommendations?
Most of our subscribers started with no knowledge of Spread Writing. Today, they have a better understanding and most of them are still with us because we consistently deliver results to their portfolio. Once subscribed, it is best to review previous trades and send any questions you may have to us. If you are new, it's best to join us 2 weeks before expiration week to give yourself time to understand how we work.
Are you a SEC Registered Investment Advisor?
No we are not. We are traders to share our trades via our electronic newsletter, The CashFlow Advisor.
Why do you not post your monthly returns on your website?
We do not post our monthly returns to comply with SEC regulations. SEC does not allow even registered investment advisors to advertise in such manner. However, all previous trade recommendations are available to all subscribers in our newsletter.
When are new recommendations posted?
We sincerely do not know. Please refer to the below question.
When is the best time to join?
It is difficult for us to answer because we do not have a fixed date or day to enter into new positions. When we feel the technical setup is right, the market condition is good, and the reward justifies the risk, we will issue new trade recommendations. If we enter the market based on a date or day, then we will force a trade when there is no good trading opportunity. We trade only when we feel right. There are some months we just completely stay out of the market.
What kind of brokerage account do I need?
You would just need to have a brokerage account that allows you to trade options - credit spreads and iron condor spread.
Can I reinvest my profits each month?
This is a decision that only you can make. Start compounding when you feel comfortable.
How much money do I need?
We recommend that you start with a minimum portfolio of $10,000. It would be best if you have $20,000.
How long is the average holding period?
Our trades will be open for approximately 30 to 45 trading days.
How many recommendations are given each month?
Typically 3 to 6 trade recommendations per month. The number of trades is not important. What is important is the quality of the trade recommendation.
Do I need real-time stock quotes and option quotes?
That is something nice to have. But since you do not need to constantly monitor your positions, you do not need real-time quotes. However, some brokers do provide it for free.
What does the members' area actually contain?
The members' area will contain our trade recommendations and instructions. You would also be able to view past trade recommendations since June 2005.
Do you tell us when to exit a trade?
Yes we do. We will also provide updates on a weekly basis on all open positions. Most of time, we will just let the options expire worthless to further save money on commission.
Would your recommendations be based on stocks?
No. All our suggestions are only options based on major indices. Remember, our goal is to preserve and accumulate capital. Occasionally, we may enter into higher yield positions in stock options when our index options look likely to profit.
Would your trade recommendation employ other options strategy?
We are mostly into credit spread and condor spread. Occasionally, a small percentage of our portfolio would be allocated into straight calls and puts.
Do you leave all the positions to expiry?
Yes, most of the time. When we leave our positions to expire, it means we are profitable.
Can you send me your track record the since inception. Are your returns based on hypothetical trades or based on actual trades?
Refer to our past performance. Actual past trades are available in our members' area.
Do you trade your own suggestions?
Absolutely! We are traders too - full time. You can be sure that we are out there with you on each and every trade recommendation that we make.
Are your published results actual real time trading results or are they results of system testing (i.e. hypothetical)?
The results are based on actual trades but brokerage fees are not included.
What are the disadvantages of your strategy?
Many investors feel that they would have to be actively trading numerous positions in order to be successful. Success is not determined by the number of trades but by the quality of trade. We have only 3-6 good trades per month. We prefer to have quality over quantity. So it may be quite monotonous looking at the same positions and have nothing to do except to wait for time.
Can you elaborate on some of the risk management, and adjustment you employ to preserve capital?
We will post pre-determined exit points once a trade has been filled. While there are many ways to repair a bad trade, we prefer to use close out a bad trade rather than to repair it. Repairing a bad trade is not a good idea to us because when emotions run high that is when we can make even more mistakes. The best is to close the trade - survive today to fight another day.
Do you employ stop loss orders?
Yes we do. To be successful in the trading game, we have to defend ourselves well.
In what market condition would your strategy work?
This strategy have worked very well so far in a bullish, bearish, and sideway market. We do a little of market timing to maximize our profit. The beauty of this strategy is we can be sometimes wrong yet still be profitable most of the time as it provides room for error. Of course, past performance does not guarantee future results. Then again, if you do not evaluate a newsletter based on past performance, how else do you evaluate?
Do you trade index options and stock options?
Yes. We trade both index and stock options - Credit spreads and Iron Condor Spreads for Indices and straight calls/puts for stock options.
What Indices do you trade?
Our favorite is SPX, RUT, MID, and OEX.
If you have 3 to 6 trade recommendations per month, how should I allocate my portfolio?
Please refer to our portfolio allocation guidelines.
Do I need to be at my computer when the markets open, or do you place most trades the night before?
It depends. Like we have said before, we trade for profit - not for
convenience
- it is not the time or date that matters to us. Rather it is the appropriate market setup and volatility that will prompt a trade recommendation. If you are looking for convenience, then you should not be trading.
How are memberships cancelled?
Memberships are cancelled by writing to us. A notification will be sent to you within 24 hours to confirm cancellation. We will leave your membership running until your subscription period runs out.
Do you provide any refund?
No we do not. We have provided a trial period for all interested 1st timers to get to know us. If our trading approach is not suitable or not to your liking, please write to us to stop all recurring billing before your subscription renews. Once your subscription is rebilled, we will no longer provide any refund. If you would like to cancel your subscription, please do so with at least 36 hours before your subscription renews.
If I sign up for 3 months or 1 year and I would like to cancel if I feel the trading style does not suit me, would I still be able to get a refund?
Unfortunately not. If this is not for you, please cancel before your trial period expires.
Are there alternatives to subscribing on-line?
At the moment, we only accept credit cards. Sorry....
I still have a question not found on this page. What should I do?
If you still have any questions, please ask our Customer Service.
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