Why are your subscription prices so high?
Do I need a large amount of capital to trade your services?
I have an IRA, can I use this to trade your services?
How do I know the returns on your website are genuine?
How do I cancel my subscription?
Option trading is risky isn’t it?
Do I have to place trades myself?
What happens in a bear market?
Can I change my subscription later on?
Is it safe to enter my personal and credit card details on your site?
How many losing trades have you had?
Can I save money on my subscription?
What is the minimum amount of capital required for each service?
Question: Why are your subscription prices so high?
Why are your subscription prices so high?
Solution:
We do not believe they are high. If you were to place broker assisted trades you would be paying $75min to enter and then the same to exit each trade. Our prices are carefully calculated as a percentage of the minimum investment required for each service combined with a percentage of the expected returns for each service. In that way the less risky, lower yielding services that require less start up capital such as Covered Calls Conservative have a lower subscription cost when compared to the higher return, higher capital requirements of the Equity LEAPs service. We believe that this represents fair value to all levels of subscribers.
Question: Do I need a large amount of capital to trade your services?
Do I need a large amount of capital to trade your services?
Solution:
No you do not. We have a selection of services that can be traded with small or large amounts of capital depending on the funds you have available. The lowest amount of capital we suggest starting with is US$9500, this would enable you to auto-trade 3 Index LEAPs positions. At this level we would suggest you compound your returns to build up your investment funds so that in the future you can trade more positions, or increase the amount per position or switch to or add another service.
At the other extreme we have customers with investment capital of many hundreds of thousand who also successfully use our services. We have a calculator which will help you choose the best service for your needs given the capital you have available, your risk profile, the level of diversity you want in your portfolio and your experience.
Question: I have an IRA, can I use this to trade your services?
I have an IRA, can I use this to trade your services?
Solution:
Yes you can in the majority of cases although it is always advisable to check with your broker just to be sure. The Covered Call and Spread services that we offer are considered some of the more conservative trading strategies and this is why they are suitable for an IRA or 401k account.
Question: How do I know the returns on your website are genuine?
How do I know the returns on your website are genuine?
Solution:
We are aware that unfortunately some financial newsletter websites only show their profitable trades which considerably overstate their returns. We believe in full disclosure and show the results from all of our closed positions on the results pages of our website. We also take the extra step of having all of our trades and results independently and continually monitored by a third party, www.pro-trading-profits.com.
Question: How do I cancel my subscription?
How do I cancel my subscription?
Solution:
For reasons of security we insist that customers cancel their own subscriptions. To cancel your subscription, please log into your account by clicking here and then select [Cancel Subscription] from the left hand menu. This will display your current details and a Cancellation button. Once your subscription has been cancelled you will not be charged again. Also once your current subscription period has ended you will no longer receive the trade alerts and you will have to exit any open positions yourself.
Question: Option trading is risky isn’t it?
Option trading is risky isn’t it?
Solution:
Naked option trading, where you just trade long options, can be risky and unfortunately and quite incorrectly this stigma has been applied to all option trading.
Our strategies cover Option Spreads and Covered Calls and in both cases the underlying stock or option is covered by a short-term call. In this way we buy the long term option or stock and then immediately cover this asset with a short term call for which we earn a premium up front which we keep regardless of what happens in the future. We construct our positions (a position is the term we use for the combination of long asset and short call) so that we always aim to exit the position for a profit. In the overwhelming majority of cases this has happened although it may mean, in a small amount of cases, that we do remain in a position for longer than we would like.
Question: Do I have to place trades myself?
Do I have to place trades myself?
Solution:
Well you can if you want to. However one of the main concerns potential investors have is around the time and cost associated with selecting and actioning trades themselves. This starts with the cost of buying an on-line trading platform and learning how to use it. You will need to buy in real time data to reflect what’s happening in the market and then sit in front of your computer and wait for the ‘right’ prices to appear. For the individual self-trader these are very real concerns indeed.
Anacott Investments has recognized these concerns and has developed our auto-trading interface to complement the auto-trade facilities already offered by most of the recognized and reputable on-line brokers. Our auto-trade facility is completely free to Anacott subscribers and takes all the concerns and monitoring time out of trading. Very simply we can offer you ‘hands free’ trading. Once you have an account with one of our associated on-line brokerage houses we will send our trade alerts to their trade desk who will execute the required trade on your behalf and according to your pre-determined stipulations. These include how many positions you want in each portfolio and how much you wish to assign to each new position. We will help you with this as once you have subscribed to our service you will receive full auto-trade set up instructions for your particular on-line broker.
When we send out a trade alert for your service one alert will go to you by e-mail, as always and if you are auto-trading, the same alert will also go to your broker’s trade desk. Your broker will then execute the trade on your behalf and in line with your pre-agreed stipulations. All transaction details will appear in your broker statement.
The only requirement in auto-trading is that you regularly monitor your on-line broker account. This is to ensure that you have the required number of positions in your portfolio at all times. This is so that new positions are opened until your required portfolio size is reached and that when a position closes out the broker knows to open the next new position that is sent out for your service. This keeps your portfolio funds fully invested and earning maximum returns. Anacott have endeavored to make this monitoring as easy as possible. The absolute maximum you will have to check your account is daily but in practice and as you become more familiar with our trading activity, this requirement may well lessen.
Question: What happens in a bear market?
What happens in a bear market?
Solution:
We are asked this question all the time. We take the view that over the long term the overall direction of the market is upwards and historical data bears this out. However the one fact that we are certain of is that over time and within this upward trend the market will fluctuate up and down and our services take advantage of these up and down ticks. Even when the market trends downwards in a bear market the market still ticks up and down in its descent. With our many years experience of options trading combined with our sophisticated analysis software we are able to construct our trade positions to suit either a bull, bear or neutral market. So you are still able to achieve consistent returns with our service whatever the market conditions.
Question: Can I change my subscription later on?
Can I change my subscription later on?
Solution:
Yes of course you can. We do of course advise all of our potential customers to read our website, look at our results pages and ask up any questions they may have before signing up to be sure that our service is right for them, we even offer a free 30-day trial so you can ‘try before you buy’. Even so you are able to change to a different service, add another service or change your payment frequency if you wish. All you need to do is go to the contact page and e-mail us using the form provided. To help us answer you more quickly please select ‘subscriber billing’ from the drop-down subject menu.
Question: Is it safe to enter my personal and credit card details on your site?
Is it safe to enter my personal and credit card details on your site?
Solution:
Absolutely! We have made sure that our website is extremely secure so that any information you enter is carefully protected by SSL encryption verified by Comodo. Our website is also monitored by ControlScan, their logo is on the left hand side of the page, who ensure our site is safe from hackers, that our business background has been investigated and customers are protected from privacy and identity theft. And unlike some of our competitors all the customer testimonials we display on our site have been independently verified by Trusted Testimonials. Clicking on any of these logos on our site will give more information on the companies involved and the services they provide.
With regards payment processing, in order to provide the most secure ordering and payment service we do not process orders directly. Instead, we have chosen one of the most reputable e-commerce companies available, Plimus Inc. based in California, US, to do this on our behalf. Anacott does not store or even 'see' the financial account information, such as credit card numbers, that you submit. Anacott will never sell or share any of your information with any third party; please see our Privacy Policy for more details.
Plimus is our payment service provider and they use the highest level of encryption throughout the entire order and setup processes. Credit card processing is done by Wells Fargo, one of the largest and most trusted financial institutions. Plimus follows all Internet standards for validating credit cards and implements its own fraud detection and prevention mechanisms. Plimus is a licensee of Thawte Authentic Site secure payment system and Hacker Safe certificate. All the personal data you provide Plimus are strongly encrypted by the standard SSL (Secure Sockets Layer) procedure.
Question: How many losing trades have you had?
How many losing trades have you had?
Solution:
Very, very few. Since we started the website in 2003 we have conducted hundreds and hundreds of trades and have only had a handful of losing trades to date. Unlike some newsletter subscription providers who only publish their best trades we have a policy of full disclosure and we publish the results of ALL of our trades on the results pages on our website, including the few losing trades we have experienced. We try and learn from all our past positions and use this experience to continually review and improve our selection procedure so we can keep our losing trades to a minimum and increase the profitability of our successful trades wherever possible.
Question: Can I save money on my subscription?
Can I save money on my subscription?
Solution:
Our services are very competitively priced and we believe give good value for money. We do offer substantial discounts if you extend your payment frequency. There is a 10% discount on the monthly cost if you pay on a quarterly basis, a 17.5% discount on 6 monthly subscriptions and a 25% discount on annual subscriptions. On the standard Equity LEAPs subscription this equates to a saving of $45 for the quarterly subscription, $155 for the 6 monthly subscription and $450 for the annual subscription all compared to the monthly equivalent. Many of our customers enjoy the benefits of these discounts and most of our subscription base choose to pay on an annual basis.
Question: What is the minimum amount of capital required for each service?
What is the minimum amount of capital required for each service?
Solution:
The rule we tend to follow is to allow a minimum of $3000 per position and then keep 5% of your total capital back for possible management moves. The number of positions you hold in your portfolio will depend upon the service you are trading. All of these elements contribute to the minimum capital requirement to trade each service. I have listed the minimums below although you are, of course, able to commit more funds per position if you wish.
| Service | Suggested number of positions in portfolio | Minimum required capital | Expected return per position | | Equity LEAPs | 7 to 10 | $22,000 | 5% | | Index LEAPs | 3 to 5 | $9,500 | 5% | | Covered Calls Conservative | 4 to 7 | $12,500 | 4 to 7% | | Covered Calls Aggressive | 4 to 7 | $12,500 | 7 - 15% |
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