Wealth Insider Alliance » Weekly Q&A

Daily Q&A With Greg Roy

ryan5billion — Tue, 22 Mar 2011 15:40:43 +0000

Question:
Hi there! I was going to do this trade but found out that I didn’t have an options account. So I set this up and am now ready to do a trade. Yey!

I am so very new at this that I wondered if I could run this by you. Scottrade is my broker, and I was going to do the following: Buy to Open, 10 contracts, QQQQ, Put Expiry 4/2011. The strike price is showing at 43.00 and I have a limit order type. What I don’t know how to enter is the limit price. Should that be entered in cents? Or in dollars, i.e., $9.00? And then do I do an all or nothing selection? I’m guessing no on that part but am not sure.

Answer: Enter it in dollars, and in this instance I WOULD list the trade as all or nothing.

Daily Q&A With Greg Roy

ryan5billion — Tue, 15 Mar 2011 15:57:05 +0000

Question:
When will there be another Speed Retirement trade? There hasn’t been anything for months… and you guaranteed 5% returns per month when I signed up.

Answer: Trade coming this week, or next week at the latest.

Question:
Hi Greg. I’m looking at buying some silver. I live in Australia. A 1kg Kookaburra Coin costs $1,241.43 & a 1kg Silver Bullion (both products produced by the Perth Mint – today’s prices quoted) costs $1,178.43. Which one is the better to buy? When the time comes to sell will it be better to hold coins or bullion?

Answer; The Kookaburra coins are very, very popular throughout the world, including here in the US. But $60 is about an extra 5%. Perth Mint silver bullion bars should be just as easy to sell as the Kookaburra coins, although the kookaburra coins may develop some additional premium due to collector value over the years, whereas silver bullion in bar form will not. This is a toss up, and either would be a good decision, but I would personally buy the kookaburra if I was planning on holding for a long time (due to the potential to develop collector value), and would go with the bullion if I was just going to hold for a shorter period of time.

Daily Q&A With Greg Roy

ryan5billion — Tue, 08 Mar 2011 20:58:11 +0000

Question:
If you have the space/means to store physical copper; in your opinion do you think it will perform aswell as silver & gold?

Answer: I think copper will do well, and will probably match the gains that are likely to be seen in gold, but I think silver will outperform both copper and gold.

Question:
Greg – I am approaching my 1st year of participation in your SRS program and am down nearly 25% in funds I allocated for this program. We have not had a new Trade Alert in 2 months (1/3/11). Your online Trade History has not been updated for a year, and your online P&L chart is 9 months old. I don’t feel I’m getting what I paid for a year ago in terms of profitable trades or current and accurate online information. I am semi-retired and cannot afford further losses such as I have experienced this past year. Fortunately, I also signed up for John Thomas’s Macro Millionaire program and have made up some of the losses suffered under your SRS program. What do you foresee for SRS the remainder of 2011?

Answer: New trade alert coming out within 1 week. Most trades will be instituted to protect against and profit from the debasement of the U.S. Dollar. We are headed into an inflationary period and nearly everything will gain, including stock prices (as we have been seeing). However, the key will be to find gains that at minimum equal inflation, and ideally are better than inflation. That is where the focus of the trades for SRS will be this year.

Daily Q&A With Greg Roy

ryan5billion — Tue, 01 Mar 2011 03:26:29 +0000

Question:
I am still holding the QQQQ March Put spread and the PCLN April Put Spread. (I know I should have unloaded a long time ago, but I didn’t). Do you think, given yesterday’s and today’s (so far) correction this is as good a time as any to close these and take the loss or do you think there might be more correction to come so hold off?

Answer: I think there is more to come, but I think the market will get some outside help before an outright torrent of selling develops. There is not much time left in March, i would exit those by March 4.

Daily Q&A With Greg Roy

ryan5billion — Fri, 18 Feb 2011 16:33:24 +0000

Question:
Greg, thanks again for your most significant insights. Since I’m not prepared to stockpile assets of the physical variety, I wonder if shifting the money I make into a healthy foreign currency (CA$, etc) when I make it. Eventually, the hyperinflation catches most of us, so any insights you might have would be most appreciated.

Answer: Pretty much all currencies are being debased, just some faster than others. I like the CA$ better than the US$, but I know that precious metals will outperform the CA$. Even if you only have $100 available, $100 placed into physical silver will do much better than $100 placed into CA$.

Question:
have a question for Greg. Is there some kind of a law that forces the Fed to come clean with the whereabouts of all the money they have spent, and where they have spent it some 2 years after the fact or somewhere in that area. It seems like I read that somewhere but am not sure as to this and if that be the case then is it not about time for some of the problems the Fed has caused to start showing up for the world to see?

Answer: No, there is no such law. Last year Congressman Ron Paul introduced a bill to fully audit the FED in order to see exactly what you describe. While the bill gathered over 300 co-sponsors, it was never passed. The FED has never been fully audited.

Question:
I have been a member of both the Crash Protection and Speed Retirement programs for approximately a year. I joined based soley on your past track record with the hope of improving my trading results. At the outset, two webinars per week were held, one for each of the programs. Trade recommendations were frequent and specific to the goals of each program.

Over the course of the year things changed. The content of the webinars began to be redundant. The same topics and issues became the subject of both the Speed and Crash program webinars. The number and frequency of trade recommendations began to wane. The last trade recommendation was an option trade with a one year out expiration. How does that fit into either of the two programs? Now we are down to one webinar per week with no distinction between what was two different investment programs and trading approaches. I no doubt have learned a great deal from the webinars and I do enjoy them. I have listened to every webinar held since joining, but my goal in joining both programs was to make money, pure and simple.

I will continue to participate in the webinars, but I feel the program has strayed off course. Trading continues in the markets each day, but trading recommendations are few and far between. I would appreciate your thoughts on this

Answer: This market is not the same market as when you joined, or the same market of our entire lifetimes. Sadly, the market is no longer a price discovery mechanism between willing buyers and sellers of shares of companies. This market has become a tool of the Fed to “manage” everything the Fed wants to manage, including public perception.

In reality, it is no longer even a genuine market. It’s is merely a policy-maker’s tool. In simpler days gone buy, when stocks were undervalued, you’d buy them, and when they were overvalued, you’d sell them. Those basic rules no longer apply. The “market” responds to the Fed, and does what the Fed wants.

Pure and simply, the way to make money in this environment is to allocate a substantial amount of your liquid funds into physical silver. The Fed is greatly debasing the U.S. Dollar, and precious metals prices are increasingly becoming a safe haven (which they have been for over 5,000 years of history). There is a small trickle of money continually flowing into precious metals that will grow to a torrent.

“Trading” this market is fruitless, as technical indicators, like fundamental indicators, no longer apply. The only thing that applies is Fed actions. The way to make money in the current stock market, is merely ride the trend of the debasement of the dollar, which is the strategy that I am implementing. Buy, hold, and ride that trend using shares and options on shares of precious metals mining companies.

Question:
Why are we still holding PCLN? As of close Thursday, it is up to 455.43.

Answer: No, exit PCLN.

Daily Q&A With Greg Roy

ryan5billion — Thu, 10 Feb 2011 18:24:49 +0000

Question:
Pasted below is my original question and your answer. Nowhere in my question did I say I was filled at 10.30. What I was trying to get an answer to was if you thought we would get filled at 7.00, I mean I entered my order and the fill price was 3.30 away from my order price, that seemed to me to be a large gap, and now SLW is at 12.27. Why are you doing all caps in LIMIT? I thought the question was easy enough to understand.

Question:
In Greg’s trade alert today he said to enter a limit order gtc for 7.00 on slw. I did that, but the fill price was around 10.30. Does he think that will be filled or did I miss something?

Answer: I would need to see all the details, but if you entered a LIMIT order, and the LIMIT that you were willing to pay was 7.00, I don’t understand why you were filled at a price much higher than 7.00. You probably should call your broker to investigate.

Answer: I’m confused. You state “Nowhere in my question did I say I was filled at 10.30″ yet, in the first question you state ” I did that, but the fill price was around 10.30″. I’m not sure exactly what the question is. Please clear up my confusion.

Question:
I saw last weeks webinar.
1) I want to know which trades you have open? and which of these i am still on time to get in the trade?

I see there was a Trade alert Jan 28th in my inbox and a Jan 3rd in my inbox and the website.
2) Where is the best place to keep up with the trading you recommend?

I assume this is going to break my heart but,
3) could you send me a history of all the trades you did last year?

One more question in one of the most recent alerts you mention a trade of an option spread of paas and you say this should be executed for minimum $3.50
I just checked the price and is well under $3.50 does this means you haven’t pulled the trigger on this trade?

Answer: The price being less than $3.50 means that you can still purchase this spread. I have already pulled the trigger on this spread and expect to hold it for most of the year, as it doesn’t expire until next January.

Yes, you can still get in on the trades that were issued in January. These are longer-term trades that will be held for most of this year, unless Bernanke and the Fed stop their program of quantitative easing. If that should happen, then these trades will be re-evaluated.

Question:
Greg, I am hoping you can speak to this email in our next webinar, or, I would welcome an opprotunity to speak with you directly to discuss my concerns. Please take my comments in the spirit in which they were written. I believe in the Wealth Insider approach and system, but am concerned as to the direction it is currently taking. I signed on in April of this year, and at the current rate, do not expect to come anywhere near the 5% profit monthly average that you advertised and which convinced me to sign up. Having followed all your recommendations (starting with DCTH), I am looking at minimal profit, and actually expect a significant loss by year end given the direction of the outstanding trades (QQQQ, SPY and QQQQ again). I have attached a spreadsheet showing what the trades have produced based upon a $50,0000 account and 5% risk in each trade, along with what a 5% average monthly profit should have produced. My perception is that you have gotten away from the premise of the Wealth Insider service because of your fervent belief in an upcoming significant crash. I do not necessarily disagree with your assessment, but feel we have missed opportunities to profit while waiting for that to occur. Again, I am not an expert, but, then again, that is why I signed up for your service. I also have been receiving your emails advertising your new “Crash Trader” service, and am concerned that the Wealth Insider Speed Retirement service is losing your focus as you focus on the Crash Trader. I have set aside $50,000 into an account to follow your recommendations exclusively, and am currently looking at a likely loss of approximatley $8K given the likelihood of the current trades (QQQQ and SPY) being complete losses as well. Please help me understand how you are strategizing to truly begin achieving the 5% monthly profit again. Otherwise, even though I am past the 90 day trial period, I would ask for a refund of my subscription fee in order to pursue other avenues for achieving this goal. Again, please take this in the positive of lights. I just want to succeed here. Thanks so much.

Answer: Unfortunately, the market is no longer “normal.” In normal times, by using a wide variety of indicators, you can achieve the 5% per month in a relatively safe manner. Those indicators no longer are useful. This market is totally managed by the Fed and involves a great deal of risk that it could revert back to the mean. Right now, based upon QE2, and the coming QE3, the inflation plays are the way to go. That’s why I’m going into long-term options that expire in a year. Simply buy the options and ride the QE trend. I do believe that an equivalent to 5% per month will be achieved by doing so. The market has changed from being normal to being at the complete mercy of the Fed. We have to change our strategies accordingly.