In his book he talks about protecting your investment using protective puts. I know what some of you are thinking, "oh no, trading options is risky business." Yes, trading options can be risky but it is generally risky for investors who want to hit a home run on every investment with no down side protection.

Protective puts are just the opposite. They are an instrument that you purchase as soon as you purchase the QQQQ or QLD to protect you should the market not go in the direction we anticipate. It is way beyond the scope of this web site to explain options but a good learning source would be CBOE.com.

Briefly, a put is an instrument you purchase when you think a certain security may go down. In my system* a put is purchased as "insurance" should the market not go in the direction we anticipate. Just like you have insurance on your home, your car, your body (health insurance), you can purchase insurance on your investments.

This is what I refer to as a flexible stop loss. In other words, if our ETF starts to go down and we are still in a buy mode the value of the put goes up, it increases in value. Great, huh?

The reason we can afford to buy these puts is that they cost a fraction of what it cost to buy an equal amount of a security, usually less than ten percent; so for ten percent (or less) you have insured your stock purchase.

But wait! It gets better! When our green line goes below our purple line (as shown earlier) we sell our security, hopefully for a profit but what do we do with our protective put? Nothing. We have just gotten a signal that the market is probably going to go lower and what happens to a put as the market goes down, the value of the put goes up. Assuming you understand how options work, such as time decay, etc. you could continue to hold onto the put and allow it to gain in value.

It is theoretically possible to make a profit both on your security as it goes up and the put as the market then goes down.

I understand that options are not for everyone but for those who want a flexible stop loss it is a great tool. For the rest of you it will have to be fixed stop losses.

My purpose in creating this web site is to offer this system* for sale, what else! I am not going to be like most of those pathetic internet marketers out there and tell you I have made so much money that I just want to give something back to society (and then charge an "arm and a leg" for whatever it is they are selling)

I am not ashamed to say that I hope I sell my system* to alot of people. If during the course of reading this web site you shook your head thinking to yourself, "that sounds like me" or "thats something that happened to me", then your little fingers should be tripping over themselves to try and get your mouse to click the PURCHASE NOW button. If, however, none of this sounds like your experience, please, please email with your trading secrets!