While investing, there are three different types of strategies that are appropriate to use in your portfolio. Portfolio design is the process of building a plan for your money, i.e. your portfolio, on how you’ll use it, where you’ll spend it and what you’ll do with it. You should know what the design of your business is, and investing is a business. If you use a strategy in your business, it should be mapped out and planned. Every detail should be accounted for. The most important work you do as an investor is in the strategic planning stages. If you do the upfront work correctly, your execution should be fairly straight-forward. In this section, we will describe the 3 different types of categories that go into your portfolio, as well as some of the best systems that we teach our traders to use in our education.
Cash Flow, Growth and Speculation. Each system can be described as one of the aforementioned types. It is either a Cash Flow system – one that is intended to make money regularly and consistently from the execution of the system, a Growth system – one that is designed to help build a portfolio’s overall equity value from appreciation, big gains and diverse investment types, or it’s a Speculation system – one that is designed to make money using aggressive, short-term and possibly leveraged products. There is a role for all 3 families of systems, and in fact, great portfolio’s will have a plan for each one. We’re going to talk about them one at a time, and then describe some of the systems that you learn taking the elite trainings that fall into those families.
This is probably the most important type of System for a new trader to develop. When you’re building your portfolio design, make sure you think of Cash Flow systems first. A Cash Flow system is any system or strategy that by design and through execution you make money consistently from time passing. Now, before we dig too deep into what and how we make money, let’s make sure that you understand you can always lose with any system, especially if it’s executed poorly. The idea of cash flow, is that through efficient and smart execution, you will build profitability consistently in the markets. Here’s a list of some of our best Cash Flow systems and the corresponding Elite Training in which they are perfected:
- Covered Calls – Options 1
- Naked Puts – Options 1
- Calendar Spreads – Options 2
- Gold Key – Options 2
- Credit Spreads – Options 1 and 2
- Fixed Income – Options 1 and 2
- Carry Trades – Forex and Elite Forex
- Real Estate – Dozens of Property Classes
- Personal Gold Standard – Mentoring
- Tackle 25 – Trading Club Membership
Growth strategies are designed to help you grow your overall equity over time. You need to have some strategies that you use in your portfolio design to help you accomplish this. The Growth mindset, is that you have more than 1 goal in mind. In your portfolio, Growth is designed to help you hit your long term retirement and wealth goals. The following list details which growth strategies we teach in Elite Legacy Education, and the corresponding Elite Training in which you master them.
- Covered Calls – Options 1
- CANSLIM – Master Trader
- Value Investing – Master Trader
- Business Ownership – Marketing classes
- Intellectual Property – Elite Program
- Currency – FOREX and Elite FOREX
- Real Estate – Property Classes
- Commodity’s – FACT
- Stock Ownership – Master Trader
- Exchange Traded Funds (ETF’s) – Master Trader
Speculation is the 3rd category that goes into your portfolio design. Speculation rests its head on the warm pillow of Other Peoples Money (OPM). The idea with speculation strategies, is that through your skills and execution you can make more money more quickly by trading. It’s an important part of what we promote and teach at Legacy Education. You should build your skills in reading charts, using leveraged products and executing strategies perfectly to build speculation systems. The following lists are some of the speculation strategies that we teach through our Elite Trainings and the corresponding training in which you learn it in:
- Day Trading – Master Trader, FOREX & FACT
- Swing Trading – Master Trader
- FOREX Trading – FOREX and Elite FOREX
- Futures Trading – FACT
- Vega Trading – Elite Options
When you build your portfolio and the design behind how you will use your money and execute your trading business, you need to think of it as a business. You’re developing systems within your business to make sure you know how each part works with the next, as well as to prevent your business from stumbling. Good portfolio design is critical to long-term trading success. You don’t need to do everything listed, but whatever you decide to do you should execute it perfectly and with the rules you learn through the Elite Trainings. If you are given design rules, the expectation is that you will follow them. You should always review your business design with a mentor to make sure it fits well together, and that you have done it with the best structure possible based on the capital you have to invest with and your goals. Any time you spend on your rules, your design and your overall business strategy is time well spent. During your first year of education, this will be a big part of your commitment in time and energy.