The core reason why you should be using EasyTrade to help you: As you may have read, I am currently in Europe, and other than desperately trying not to put on weight with the volume of rich food on offer, it has also provided a time out to look at many things with fresh eyes.
New isn’t always better
As with the markets, architecture provides a strong case for moving with the times, being edgy and cutting edge, against a backdrop of tradition. However, all too often the new buildings simply don’t stand the test of time. Take the George Pompidou centre in Paris. Completed in 1977, it provides a very modern gallery, amongst other things. It cost just shy of a billion and has already had a $570m plus makeover, needs another and costs around $15m pa to keep up together, requires continuous panting and in short, looks dreadful.
Compare this to the Louvre. Depending on which part of the building, anything from 300 to 700 years old. It has stood the test of time and is proven. Not only that, it is a beautiful and overwhelming building, in its size and presence.
What does this have to do with trading?
Every now and then, a “new” strategy comes along and gains interest, without really being shown to be a stayer. An example of this is using CFDs as an underlying to then write covered calls. Sounds exciting, requires less cash and is very different from covered calls. 10 times leverage sounds very alluring, but that cuts both ways and can do big damage. What’s more, what you save in cash by buying the cfd, is tied up at the exchange as additional margin to “cover” your sold options. Not to mention that 5% stop loss is really x10 so 50% of your cash is at risk…
Alternatively, maybe the calls you have sold aren’t really exchange traded and instead are a synthetic version, with massive spreads and no liquidity…. Problems written all over it.
Over the years, almost 20 now, I have learned to filter out the latest and greatest and focus on what tends to work on a more regular and long term basis. Covered calls do that and our team provide a first class service to support them.
How about a polish up?
Sometimes the old way can still be the best way. However, rather than get left in the dark ages, perhaps every now and then just needs a polish. Our Easytrade® app has taken a time tested and well regarded strategy that has been shown, over time to outperform the broader market, and bring it to the cutting edge, in terms of trade execution, clearing costs and convenience.
Click Here to register for a free trial. To watch the demo Click Here to see just how straightforward EasyTrade® is.
