Special Report

Launch Investor FAQ: Answers to the Most Frequently Asked Questions

Launch Investor FAQ: Answers to the Most Frequently Asked Questions

One of the best things about taking a project live is getting feedback and questions from the folks it’s designed to help.

That’s why we’ve compiled the most frequently asked questions new Launch Investor subscribers have.

Check them out below, and be sure to send your questions to mailbag@manwardpress.com.

What types of companies and strategies will you recommend and target?

We will focus mainly on  companies with the best potential for explosive growth. This will often be in the tech sector, which cuts a wide swath on account of technology enhancing just about everything. But we won’t limit ourselves to tech . If my research identifies other companies with strong potential and the right metrics, for instance in biotech, financial services or  manufacturing, you’ll be hearing about them.

We will additionally target simple to understand and easy to execute options strategies. We’ll mostly use vertical call spreads and vertical put spreads where we buy one option and sell another option simultaneously. These “debit spreads” (because we’re buying them) can be very cheap and offer huge potential returns with exactly defined risk and reward parameters. You’ll always know what they cost, mostly less than $2.50 per spread contract and sometimes as low as $0.10 (10 cents), which is all you have at risk. And you’ll always know what the potential returns are, sometimes they’ll be a few hundred percent!

How much money do I need to invest?

The short answer is that it’s up to you. The only limit is your capital. The price of a stock recommendation isn’t a factor, whatever capital you want to apply to a position, because most of your brokerage platforms allow you to buy fractional shares. If your brokerage doesn’t offer fractional shares, think about opening an account somewhere that does.

But remember, this is a speculative trading service. Never risk money you can’t afford to lose. And be sure not to invest all of your money in one play, EVER. It’s best to take small positions in a variety of plays.

What’s the average hold time for positions?

When we enter a new stock position, I always say it’s a trade, because that’s how everything starts. If the stock price keeps going in our direction, meaning up and up and up, and that trade becomes an investment, there’s no telling how long we’ll want to hold it, hopefully for years and years.

Our options positions are mostly designed out three to six months on average. There may be times we’ll buy longer-dated options, like LEAPS, and sometimes we might buy options with only 30-45 days to expiration, if I see a quick profit opportunity.

How will I know when to sell?

With our stock picks, I typically recommend a protective trailing stop 25% below our entry price. Our stop recommendations are based on closing prices, not intraday prices. If a position closes below the trailing stop, sell your shares at market during the next session. It’s the smart way to limit your risk.

With our options positions you’ll know when we put on a trade what our profit targets will be. Sometimes we’ll have a stop-loss order on our new options positions, sometimes we’ll use conditional stop orders on our options positions.

A conditional order is as simple as: If the underlying stock trades at some specific price, then sell your options position at the market.

But rest assured: I will give detailed instructions on what to do when it’s time to sell and take profits.

What is a trailing stop? How do I set one?

This is an order you can give to your stockbroker or apply on every trading platform. It protects your initial investment in the event of unfavorable movement. If you’re not using a broker, it’s easy to track on your own. Here’s an example. If you purchase a stock for $10 and set a 25% trailing stop, you would sell your shares if they dip below $7.50 when the markets close. This protects your initial investment against continued downward momentum. However, if the stock doubles and hits $20, your 25% trailing stop would move up to $15. In this case, it protects your profits.

Here’s the key to trailing stops… They trail the stock’s price as it climbs higher, but they never go down.

Keep in mind that Manward uses intra-day stops for its recommendations.

But if you don’t feel like dusting off your calculator, don’t worry. I do all the math for you. Each week I’ll review the portfolio and update you on any movement in our positions.

As always… I’ll tackle the hard work.

Do you use trailing stops on your options plays?

No. Options are too volatile for this exit strategy. Because contract prices can swing by 50% or more in a single day, we’d often be pushed out of otherwise good options plays if we followed a trailing stop.

Instead, I always recommend you sell half of your stake when an option doubles in price (which can happen very quickly). Otherwise, I recommend selling your options when the underlying stock hits your preset trailing stop, which is a “conditional” order.

But you don’t need to worry. I will always send you detailed instructions when it’s time to sell.

Do I have to trade options to use this service?

No. Trading options can be a powerful and exciting way to build a retirement fortune. But investing always carries risk, and that is no different with these tools.

That said, even if you don’t want to trade options, you can still get great results from trading regular stocks. So don’t feel discouraged if you want to stick with what you know. You can still make a TON of money with my recommendations.

And if you haven’t traded options yet but want to learn how, that’s even better. I’ll teach you everything you need to know. You can approach this however you want… at whatever speed you want… and get the chance to make a lot of money.

What broker do you recommend?

Manward is not affiliated with any brokerage. If you already have a broker, there is no need to open another account. But if you don’t already have a broker, the easiest way to get started is by opening an account with any of the big, discount brokerages like TD Ameritrade, Charles Schwab or E-Trade. Fidelity is a personal favorite because of its excellent research. All of these brokers offer some level of free trades, mostly on stocks and sometimes on options, which is great for investors. And since free trades are now the industry standard, you shouldn’t settle for anything else.

How much time is required to be successful?

You’ll hear from me at least once each week. I will hop on live call with your fellow subscribers every Wednesday to go over what I see in the markets… review the portfolio… or lay out a new trade. If you can’t join me live… not to worry. I’ll also send you an email with all the information I cover in the call.

There are multiple options available… Which should I buy?

I will almost always recommend the options that expire on the third Friday of the month. These are the standard monthly options.

Why are the stocks in your reports not in the portfolio? Are they still worth buying?

Absolutely. These are high-quality plays that have the potential to net you big gains. But because I’ve found that readers tend to buy the companies in these reports at different times and therefore at a wide variety of entry prices, they won’t be officially tracked in the portfolio. However, I’ll still send out periodic updates about them.

These are the most common questions I get. I recommend referring back to this report as you get started.

And again, let me know if you have any questions of your own by sending an email to mailbag@manwardpress.com.

Note: If you need to talk to anyone about your account, contact our Support Team here.