High Verses Low Risk Trading

All trading is not created equal.  There is trading where the client is at more inherent risk than other types of trading.  As we, at The Joker Brokers have insisted to learn everything you can about this, and any type of business, your chance of success increases dramatically. 

When I was first in this business I didn't even know what a medium term note was let alone knowing if I had a real program or not.  Then comes other instruments to learn about, like Bank Guarantees, Standby Letters of Credit, Currency trading, all the Swift Messages (MT-760, MT-799), and the list can go on and on.  With the advent of the internet anyone can learn about any parts of the business for free.  There is one HUGE problem?  And the problem is most of the information on the internet or postings on message boards is just plain WRONG!  Some of you may be reading this with astute knowledge of what I have mentioned above, but did you know there is High Risk and Low Risk trading in the arena of private programs?  I know this because I was involved in High Risk Trading myself being ignorant of other types of trading.

What is the difference?  The difference is very simple.  All of the processes of trading are very simple.  High risk trading works with debt creation and the low risk trading does not.  Debt creation is creating a credit line for the client and therefore putting the client into debt.  If I have 500 million dollars in my bank and the trader creates a 500 million dollar credit line for me I have 500 million dollars of cash assets and 500 million dollars of debt.  If 500 million dollars is my whole net worth the trader just made my net worth ZERO!  As many of the message boards will say the debt is the responsibility of the trader; it is not.  The debt now is the responsibility of the Client and ONCE the debt is created the client is stuck in the program until the debt has diminished to Zero.  If you have professional traders that know what they are doing the client will eventually overcome the debt, however, this is high risk, stressful for the client, and sometimes the trading does not go as planned.  Everything has to be orchestrated from beginning to end with the buying and selling of Medium Term Notes.

Low risk trading is based on the fractional reserve unique banking element and at no time does the client take on any debt.  The client's funds are compounded with continual growth of the cash.  As mention above, they are numerous ways to created a trading program, either with manage buy/sells, trading of paper, etc, but all of them will put the client into debt.  Any exclusive bank program within the unique banking element is not creating debt for the client, is not putting the client at a high inherent risk, and will only create wealth for the client.