The above motto states the inherent philosophy of our business model. Take the time to read all 3 sections below and give them some serious thought. Regardless of your business intentions, we believe this is an enlightening viewpoint that should be given serious consideration by all investors.
Secede from the pack and its business as usual tactics!!
Standard Mainstream Practices of the StreetThe "good ole boy network" and its business as usual tactics spend an exorbitant amount of time and money in order to get your investment dollars. Maybe they should put some of that money into obtaining better returns and treating their customers fairly? Once they acquire your capital you are guaranteed only one thing, they will make a healthy profit. You are guaranteed absolutely nothing, possibly a gain, possibly a loss. A win win situation for them, a win or lose situation for you!
Let's take a quick look at how these investment firms have traditionally operated. Standard procedure has them allocating your cash for whichever investment vehicle(s) and services they offer, only to take a cut regardless of the financial outcome of your monies. They win, whether you win or lose! Some even charge fees for there services while also making money on trading commissions at the same time! Next time you give any of wall streets standard big name firms your money; ask them if all commissions and/or fees will be refunded if you end up in the red?
More recently a new trend has evolved to separate you from your assets at no risk to the finance industry, investment recommendation services with upfront fees. This trend has some high end research firms selling you a timed package of trade recommendations that you execute through a brokerage account of your choice. Here you pay for a service that gives you investment recommendations that may or may not pan out on your behalf, once again they win, you may win or lose. However, this is not a bad model; its only flaw is in taking capital from you up front regardless of trading outcomes.
Another issue with this new trend and the old alike is transparency, unless you are a savvy investor who knows to ask, no one has their track record up in lights. We all know that past performance is not indicative of future outcomes, but itís a great place to start, one would think someone trying to sell a service would be gloating over their past results. In conclusion, both mainstream scenarios laid out above are wall streets guarantee for financial success to their bank accounts at the possible risk of ruin to yours.
Our Business PhilosophyAs anyone in the know is aware, these methodologies don't exist in the world of smart money. Large hedge funds and others working with wealthy investors work on a simple principle of making a small commission contingent on a profit for their clients, or they earn nothing at all! They may also obtain a bonus after they meet certain percentage gains for their clients, but you can rest assured they will not get a dime if they lose their clients capital over the course of a given investment horizon. This is the way it should be for all investors regardless of the initial amount of investment capital. We believe in this ideal enough to offer to any investor no charges on our behalf unless we make profitable investment decisions on your behalf. We feel this fair and straight forward business model should be mainstream for any investor, with any level of experience and wealth.
Unfortunately, we canít help our clients in the area of trade commissions, but you are free to choose the discount brokerage service of your choice, and we will not benefit from that business relationship in any way. Trading costs are an inherent part of this industry that cannot be avoided, but youíll goal should always be to minimize them. At the same time there is something to be said for quality of service, so sometimes paying a little extra for that service is a must.
An added benefit to you the client in keeping your money in a discount brokerage firm of your choice, is that Dixie Derivatives is Bernie Madoff proof. We don't want your money in our accounts! We only need your permission to trade your accounts, any deposits or withdrawals are done by you the owner of the account. You receive monthly statements from the reputable brokerage firm of your choosing and sleep soundly at night knowing the status of your capital and the procedures for deposits, withdrawals, and transfers.
Your investment goalsWe also feel that any investor should be diversified not only in a basket of equities, bonds, exchange traded funds, mutual funds, and/or any other investment vehicles, but in the key resource of financial derivatives. Derivative securities have been shunned by many, but there financial leverage and ability to hedge is undeniable and unable to be matched by any other investment vehicle in existence. We advocate that between 5-15% of your investment capital should be invested in derivatives, whether to speculate, or to hedge your current existing financial portfolio. Do not let the negative biases of the street sway you against utilizing this invaluable financial tool. Simply put, utilize derivative securities! Optimize financial gains!
We also encourage investors who are willing to take a risk to earn above average returns to explore the possibilities of using financial derivatives to get them to a level of wealth where they can then invest in more traditional investment vehicles. Be real, we are all here on this planet for a short and finite time frame. Do you think your current annual yields will achieve your long term investment goals? As an example, if you are 30 and have 40K in investing capital to your name, how much of return do you think you will make over the next 30-40 years, 7-12% annually? Is this going to put you at the level of wealth you need along with the savings you will be able to make over your working lifetime? Or, do you think you need to take the risk for larger returns on your capital?
We also feel on a personal as well as a business level that Wall Street is deceiving the general public in leading them to believe that they will have the appropriate nest egg at retirement from traditional investment vehicles. So secede from the pack, as the word is defined, break away from the status quo! No business should have the right to take your money unless they provide a service that in the end results in a positive cash flow to you! No investment service should operate without utilizing financial derivatives to maximize their clients returns and/or protect there clients current portfolio from risk exposure. We wouldn't want our business run any other way.
In advance, thank you for your trust and patience, Secede!! Dixie Derivatives