We are withdrawing $5,034.38 to rebalance the speculative trading model.
Our baseline capital for the Speculative Trading Model is $100,000 which is reset each quarter. Of course it’s up to you to manage your own investment allocations. By resetting the Spec Trading Model to $100,000 each quarter, it’s easier to track performance and individual positions on a percentage basis.
I’ve had some questions about using both the Speculative Trading Program and the Accelerated Income Model. Specifically, some of you have asked about balancing capital between the two models.
I’ve designed the Accelerated Income Model to be a stable long-term approach suitable as a core investment program. The model typically carries less risk than the overall market, and can generate reliable cash flow which compounds over time.
The Speculative Trading Program is a high-risk / high potential reward approach that is not suitable as a core strategy for long-term investors. Since this program carries a significant amount of risk, I recommend using a smaller portion of your overall wealth with this approach.
I’m no longer registered to give individual investment advice. So I can’t make a recommendation for your own personal situation.
But I can give you some guidelines to think about.
A conservative retiree with $1 million to invest may decide to put $900k in the Accelerated Income Model and only $100k in the Speculative Trading Program. That way the majority of assets are in a relatively safe income-generating program. A small 10% portion of capital can then be used aggressively with the Speculative Trading Program.
On the other hand, an aggressive employed professional with the same $1 million to invest may choose to put 60% of capital in the Accelerated Income Model and 40% of capital into the Speculative Trading Program.
This investor would be accepting much more risk. But since he or she is still earning a professional income and has years until the capital is needed for retirement, this situation may be more appropriate.
I do not recommend using the Speculative Trading Model for more than 50% of your investible capital. In my opinion the risk and volatility is simply too high.
Again, you can make this decision for your own capital. So do what makes sense to you.
If you would like more information on the Accelerated Income Program you can find it here.
Over the weekend, I sent out a quarterly report with thoughts on the current environment and updates on both of our models. If you missed it, you can review the update here.
Please feel free to reach out to me with any questions or concerns. I appreciate your business and wish you every success in the fourth quarter!
Here’s to growing and protecting your wealth,
Zach