The three components of Everest by Frej Capital.

When is comes to investing there are a few different types of strategies that we focus on; day trading, swing trading, long term investing, and hedging.

What is Day Trading?

• The practice of of purchasing and selling a security within a single trading day.
• Involves well-educated traders and well-funded accounts where certain restrictions are lifted.
• Utilizing high amounts of leverage and short-term trading strategies to capitalize on small price movements that occur in highly liquid stocks or currencies.

What is swing trading?

• The practice of holding a security for more than one trading session. (A trading session is from 9:30AM-4:00PM est)
• Usually lasts a few days up to a couple of weeks, but with overnight and weekend risk trade time frames vary.
• The goal: capture a specific price movement, either long or short.
• Risks involved are gap ups or down, pending news, stop losses being triggered, and risk/reward ratio not being favorable.

What are the benefits of long term investing?

• Creating a solid base to outweigh a risky portfolio.
• Investing for your future self in stocks you are confident will grow in value.
• Minimalizes the tax burden of short term capital gains.
• Creating a dividend income on stocks such as AAPL, JPM, XOM, JNJ, etc.

What is Hedging?

• Managing and minimizing risk by insuring themselves against a downside in an investment.
• Types of Hedging:
  • Derivatives
    • Futures
      • Locking in a specific price for a premium up until a certain date called the expiration date
    • Options
      • Locking in the right to buy/sell but not the obligation to buy the underlying asset (the stock) at a certain price (strike) up until a certain point in time (expiration date)
      • 100 shares per 1 contract, the premium is the price you pay for the right but not the obligation to buy/sell 100 shares at a specific strike price
      • These are rarely executed in our strategy since we capitalize on the rise of the premium for the option contract
      • Call Option
        • Bullish
      • Put Option
        • Bearish
  • Asset Allocation
    • Diversifying your portfolio
    • Small cap – Large Cap, Commodities, International
  • Averaging Down
    • If you are confident in your stock purchase but it fell due to recent news, buy in at a lower price to lower your average cost
  • Dollar Cost Averaging
    • Continuously purchasing a fixed amount every day, week, or month
  • Liquidity
    • Having cash on hand for unforseen opportunities and protecting against market uncertainty