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OPEN AN ACCOUNT & INVESTMENT STRATEGIES
If you want to invest with TeoFutures in this market, the first step is for you to open an account with a brokerage firm. We don’t have any affiliation with any particular firm and we don’t make any money out of your trading commissions, so it doesn’t make any difference for us where you decide to open your account. We do prefer our clients to open their accounts with Interactive Brokers, basically because they specialize in option trading and we prefer to have all our clients under the same firm. But you decide where you want your account to be.
After you open and fund your account, we will start making the trades into your account following our studies and the conditions of the market. As mentioned before, we make between 1 and 8 trades a month. All trades last for only one day because we only try to take advantage of the volatility of the stock price on that day. We  do not base our trades on where the stock price is going to be in one week or one month from now because too many things can happen in one week or month, especially in today’s stock market.
We only buy Call or Put options, so we have a known maximum exposure on every trade we make, and we also use stop losses in order to keep loosing trades as small as possible. At any time during the day, you can enter into your account and see your balance; you will see if there is a position open and if you are making or loosing money. Also, you will receive a confirmation from your broker of every trade that is made in your account. Please keep in mind that we only make the trades for your account, but nobody in TeoFutures has access to your money in your account.
At the end of the month you will know if there is a profit or lost for that month, net of the commissions costs charged by your broker. TeoFutures charges a success fee of 25% over your profits every month. For example, if at the end of the month your account has a profit of $2,000 net of all transaction costs from your broker, then you will pay TeoFutures $500, which of course you can take directly out of your profits. If instead you had a lost for that month, then of course you don’t have to pay us. We think this is a very good deal because basically we share your success. It is in our best interest for you to be as profitable as possible. Our success fee is not negotiable and is not cumulative. This means that if you lose, for example $1,000 one month and made $1,000 the next month, you will not pay us the month that you lost, but you need to pay us $250 for the second month when you had the $1,000 profit. We prefer to be as clear as possible regarding commissions because we prefer to work with clients that are open to the same ideas than ours regarding how much an advisory services is worth.
As mentioned before, options trading is considered risky and not for everyone. If you are interested in this type of investments, then give us a call at 305-864-2494 and we will let you know if it is a good idea for you to invest in this market. As a general rule of thumb, you should invest in this market only money that in a worst-case scenario you can afford to loose without affecting your lifestyle. Also, in case you think $15,000 is to high to start, there is another trading strategy in options that you can do with us starting with $5,000. So please call us (305) 864-2494 and lets talk about your particular case.
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