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Sunday September 07, 2008 |
Bedford
Tradecraft Platinum Service Vital Statistics
Q. Options carry
more risk, why do you trade stock options instead of the underlying stocks?
A. We trade stock options to reduce the risk. It is true that the entire
premium paid for a stock option is at risk. However when trading stock options the actual
out-of-pocket money is far less. Only that money is at risk (as opposed to the total cost
of the stock). Moreover by trading stock options we greatly increase our leverage. For
example if we are bullish for GM ($55) we might buy 20 GM 55 calls for $1. We control 2000
shares of GM for $2,000. If we buy the stock out right our cost would be $110,000.
Q. How do you determine which stock options to buy?
A. We use the same proprietary technical and fundamental systems used for our
institutional research. Once a security has been selected the next step is to decide which
option and series offers the most reward for the least amount of risk.
Q. What has been the track record of the Bedford's
Tradecraft Platinum service?
A. Our monthly returns are online. You can explore our trade by trade
history.
Q. You do a great deal of trading. How will I keep pace?
A. Before we enter each trade we will send you email. You can decide if you want
to take the trade or stay on the sidelines. Intra-day alerts are
broadcast at 9:15 a.m., 10:30 a.m., 11:30
a.m., 1:30 p.m. and 3:30 p.m. All times are Eastern Standard
(ET).
Q. Your trades seem to be very short in duration. Don't you run the risk of
missing the big move?
A. The mandate of the Bedford's Tradecraft Platinum
service is to execute short term trades. If
a stock hits our first upside target or stop level we liquidate the position. It is
this
discipline that has led to our impressive returns.
Q. How much money do you invest at any given time?
A. We will not normally have greater than $20,000 total invested. Our concept is
to remove trading profits in excess of that amount each week.
Q. Do you trade the indexes?
A. Occasionally we will add index options, however our primary focus is
individual stock options.
Q. The market experiences periods of strength and
weakness, how does the Bedford's Tradecraft Platinum service deal with this?
A. We trade both sides of the market. Traditionally stock prices fall twice as
fast as they rise. We looking for trading opportunities
regardless of the direction of the markets.
Q. You trade options, but I am more comfortable with the actual underlying
stocks. Can I trade stocks based on your advice in the Bedford's
Tradecraft Platinum services?
A. You can trade stocks based on the Bedford's
Tradecraft Platinum service. However if you
really want to focus on stocks we suggest you look at Silver
service.
Q. How do I get started?
A. You can subscribe to The Bedford's Tradecraft
Platinum service by becoming a Bedford &
Associates Research Group member. Subscription prices are $295.00 for 1 month, $797.00 for
3 months and a 2 week trial is FREE to new members. Click here to become a
member.
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