Bailout Compensation
As mentioned, one of the principles of the strategy is to make at least 3 consecutive years. On average 20-30% obtained this year, but if a year is very wrong. How can you lose?. The answer is just that, by 20-30% per annum (for statistical analysis). Let’s see numbers as it is in our portfolio to support that bad year. That would mean a loss of some 7200 euros a year (I know it is a high figure), hence the importance of staying true to the strategy at least 3 consecutive years. As the broker closes operations in the account if there are less than 200 euros (depends on broker), we must ensure that when we employ about 6000 euros to spare, at least in mind we have 7200 (the worst losses in years all bad) + expenses finance commission + expenses + $ 200 minimum. Thus although we have a bad year or cause large swings in the portfolio during the year the operations will remain open. Ie to perform transactions worth € 24,000 need to consider about 9560 euros (7200 + 200 + 240 + minimum possible 1920) that the money is always considered to be approximately 38% higher than the money you really think keep frozen investment. I give you an example if we are starting the portfolio and want to buy 1000 euros, we have to put in the account at least 250 euros. But potential fluctuations should actually put 250 + 95 euros (possible fluctuations in costs) = 345 euros + 200 (minimum) move we enter into reality for Euro 1000 545. In the next purchase buy another 1000 euros, since we entered into account 345 euros more (the 200 are already in) and so on.