There aren't perfect investment Methods. There Are Robust Methods That Perform Well Under Certain Market Conditions. For Individual Investors, The Best Methods Are Knowledge & Discipline!

One must learn to assess markets from a Professional perspective. A Professional perspective will increase your chances of success. Your Personality and Risk Appetite will define the types of methods you can best follow. I will introduce 3 frameworks to help out, but remember: your expectations and risk profile will determine the outcomes!

Investment Myths

There's a lot of high quality information about investing available online. Unfortunately, There is also a lot of false information, misleading advice, misconceptions, and flat-out lies..
Knowing the difference between myth and reality is your ticket to hitting your investing goals. Some common heard misconceptions: it's hard to get started, It takes a lot of money to make money, investing is Too Risky, It's a Rigged Game & Etc.
So let's deal with myths & misconceptions from our perspective here:
Myth 1: Never Use Options: They are too Risky!

Many people believe options are risky. Although any style of investing holds risks, I share the view that trading options mechanically is actually less risky than trading stocks.

One can't say with certainty that you always make more money trading options than stock, but on a risk adjusted basis, If done properly, believe selling option premium can be a less risky solution.

Myth 2 :Follow Buffet's Methods.

Warren buffet is a Brilliant Entrepreneur, Shrewd Investor & Fantastic Public Relations !

With all that said, there is a lot of misunderstanding when it comes to what and how Warren Buffet really invest and generate returns.

Mr Buffet is a Hard Core Activist Investor, Derivatives Trader, and used to be a Hedge Fund Manager Charging the same fees he now so often criticizes.

His main business is Insurance. His business is to play the House - similar to Casinos - knowing that the law of large numbers are on his side. What he does is far more complex than what people like to think or believe.

That forms the core of his activities and was indeed the solid foundation of his success. And, it is usually ignored by the public. I wonder why?

Myth 3: Value Investing is the Only Safe Way to invest in stocks.

Fact: Value Investing is FAR MORE ART THAN SCIENCE!

A valuation will be as good as the inputs and CHOICES made by the analyst. It is very subjective!

Mr. Graham’s GEICO investment broke several of his own rules such as not putting more than 5% into any single company (GEICO accounted to 20% of Graham-Newman) and not holding onto companies that no longer met the requirements of a value investment.

Interestingly, the one company for which Graham violated all his rules, was also the company that accounted for most of his success.

Here is what he said: “Ironically enough, the aggregate of profits accruing from this single investment decision far exceeded the sum of all the others realized through 20 years of wide-ranging operations in the partners’ specialized fields, involving much investigation, endless pondering, and countless individual decisions.>

(The Intelligent Investor, 4th revised edition, Postscript, pg. 289)

What I believe: Many ways lead to Rome

There are compelling to support the fact that hedge fund managers and corporate insiders know more than you do. Why this matters to you?

It matters because hedge fund managers and insiders are at the TOP of the investment chain, and just by learning & understanding a few simple concepts, you can let them do the hard work for you; You can sit back and enjoy the ride.

Sounds fair?

Investment Strategies & Methods

I will introduce 3 methods. I will share who a long side, qualitative selection method can be implemented. For those looking for cash flows, I will introduce options strategies that can enhance returns substantially. For those with risk appetite, we will explore a trend following approach using Futures & Options on Futures.
Let's explore each separately:

Why should I learn these Methods?

Methods bring structure & reduce second guessing.

It helps you to understand how successful professionals make decisions.The method is based upon Education & Knowledge.

Having a structure and having goals will help you in selecting the strategies you wish to follow in order to build your portfolio

Finally, I believe you will benefit by understanding these concepts when you are managing your own money.

Reality Disconnect

The results published by the academia & media in regards to Index Investing performance,make two assumptions that seem to be unrealistic to most individuals.

First, that you will roll you investments indefinitely'

Second, you won't withdraw any money along the way.

Sorry for being intrusive and making assumptions here, but for the large public, that is unrealistic!

This strategy is based upon the premise that you should attempt to leverage the processing power of computers to analyze a business, allowing you to spend more time being the stock analyst.

1). Systematic approach to investing that minimizes influences of behavioral biases.

2). Efficient allocation of resources: more time spent on qualitative analysis of companies and less on number crunching.

3). Easily analyze a larger opportunity set without resource/time restriction to find the best investment opportunity.

4). Form a big picture view of portfolio aggregated from individual stock characteristics.

It follows the philosophy that investments should be made in high quality companies with durable competitive advantages and that are able to grow at attractive returns on capital – creating value for existing shareholders and driving capital appreciation.

There are different ways to apply options to optimize investment performance, generate cash flows and reduce portfolio risk exposure.

One can decide to use covered calls or cash secured puts to generate cash. One can take buy options outright to increase performance with limited risk. Options are flexible and provide endless ways to generate returns and income

A key element when it comes to options is implied volatility. Implied volatility will largely influence and determine the course of action.

it may sound a bit complex now, however, one understood, options become a source of relief for investors. It reduces stress and allows Room For Error. That is quite unique in investments.

This is a Macro Long/Short Volatility strategy , which profits from the active trading of the most liquid and efficient volatility products. Over the past decade, volatility has become a new, generally untapped asset class. To take advantage of this phenomena, an investor can trade VXX and UVXY, “exchange traded notes” which are priced from a constantly rolling managed portfolio of Volatility Futures.

The cost of rolling these futures causes VXX and UVXY to “drag” or “decay” bringing the price of the product down over time regardless of the level of volatility in the marketplace.


Investment Strategies & Methods

I will introduce 3 investment methods. The first method is geared towards investing on stocks (buying or going long) and building a portfolio following a qualitative & quantitative selection method. The 2nd method is geared towards investors looking to generate cash flows with their investments. To reach their goal, I will introduce options strategies that allow to generate income and can enhance returns substantially. Finally, for those with willing to accept higher risks to generate greater returns, we will explore a trend following approach using a combination of Futures contracts combined with Options on Futures.
Let's explore each separately:
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