3 Educate | Analyze | Profit

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

Leave a Reply

AAPL 
$143.84  2.36%  
MSFT 
$266.43  1.49%  
AMD 
$99.61  7.51%  
^GSPC 
$4,068.00  2.24%  
^IXIC 
$11,771.36  2.94%  
DIS 
$105.72  2.38%  
PLTR 
$8.32  4.56%  
SPY 
$406.33  2.25%  
NVDA 
$178.85  5.36%  
NIO 
$16.03  9.49%  
SNAP 
$14.72  3.94%  
BCRX 
$9.24  4.94%  
DKNG 
$14.23  0.67%  
PENN 
$31.59  6.67%  
PINS 
$19.65  3.94%  
UPST 
$43.79  8.20%  
MRNA 
$133.78  2.24%  
PFE 
$54.13  0.77%  
TSLA 
$711.52  8.00%  
$13.14  3.40%  
SQ 
$82.56  5.91%  
COIN 
$70.01  4.23%  
ETSY 
$77.48  8.23%  
$21.43  0.59%  
ARKF 
$18.18  4.90%  
ESGV 
$70.98  2.41%  
ABNB 
$114.73  3.92%  
CAT 
$212.84  1.69%  
PAVE 
$25.61  2.52%  
FB 
$190.99  3.89%  
TWTR 
$39.02  5.00%  
WMT 
$126.25  2.33%  
AMZN 
$2,245.60  5.16%  
GME 
$126.19  9.57%  
%d bloggers like this: