The Arbitrageur System

Post image for The Definition of Risk Arbitrage

What is the risk of performing an arbitrage trade? Since I am NOT a securities expert, a certified financial advisor, a licensed accountant, or a lawyer, I categorize all the strategies on this topic as high risk. A high-risk investment technique is one in which investors may lose their entire investment and in certain circumstances might even lose more than the original capital invested, e.g. trading on margin.

When trading you must understand your level of sophistication when it comes to market knowledge, experience, and risk tolerance.

Risk Tolerance

  • How much pain can you take?
  • How much volatility can you handle?
  • What amount of money are you willing to lose?

Level of Sophistication

  • How smart are you?
  • Are you brilliant or “Baka”?

risk arb

The 3 Subcategories of High Risk Investing are:

Low High Risk (LHR): the least volatile of the three, it has a potential for capital loss;

Moderate High Risk (MHR): very volatile and has a greater potential for capital loss;

Extremely High Risk (EHR): capital loss is to be expected with greater probability in this subcategory, which is the most volatile and least desirable of the three.

Let me emphasize that all three subcategories of high risk investing may involve substantial capital loss, the risk that the portfolio will be valued at less than the original amounts invested, and the loss of principal.

To better understand risk I recommend you to download one of our free investing resources.

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November ReportOctober 2014, was a slow month because I am only running a 20% risk exposure inside my income portfolio.

As you already known I share my results with you mainly for three reasons:

  • The Benefit of Full Disclosure
  • Share the Knowledge
  • Track Performance

 Because “no one should talk about investing, if they are not willing to show their actual holdings and performance.”

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AIS map

The American Dream

We are living in critical times in which the rich are getting richer and the poor are getting poorer.  The American Dream seems to be slipping out of our hands: out of Main Street, out of reach for regular people just like you and me.  The usual way to achieve success through hard work is no longer true.  Market globalization has led to lower wages. Technology displacement and outsourcing has created rampant unemployment, and the state of the economy is creating political unrest around the world, with no end in sight.

But in this system, I will present another way to achieve your financial freedom, the bankers’ way. Here, I will reveal the investment strategies that will help you create an income-producing portfolio for life by uncovering Wall Street’s biggest secrets and the way bankers really operate.

The techniques that follow will teach you the importance and the how-tos, of passive and residual income investing. The true meaning of leverage and compounding returns will be unveiled under the protective umbrella of the corporate structure.

Unsuccessful speculation is gone forever; market  gambling is no longer allowed.  The time when your only investment strategy was to buy and hold with the hopes of realizing a capital gain in the future, is over.

It’s time to stop the blind speculation and the day trading. Let’s learn how to beat the bankers at their own game; let’s become financial market entrepreneurs. Let’s become  arbitrageurs.

I hope that by the end of this report, when everything is said and done, you will have decided to become an  arbitrageur yourself. Stop being part of the 99%. Arbitrage your way out of the status quo. Join those in the 1%. Enjoy the fortunes you are about to create with  your -pipeline portfolio-.

The Parable of the Pipeline by Burke Hedges

What do I mean by a pipeline portfolio; first you need to familiarize yourself with The fable tells the The Parable of the Pipeline by Burke Hedges. tory of Pablo and Bruno and their quest for financial independence.

Bruno decided to do what most people do, trade his time for money. He decided to acquire debts instead of assets, getting himself trapped in the rat race.

Pablo, on the other hand, invested his income the right way. He bought and built assets instead of debts. People like Pablo invest for income, not for speculation.

So no more trading time for money. Inside this eBook, I will show you how you can make your money work for you.

The arbitrageur investing system that I am about to share with you has the goal of helping you design your very own pipeline portfolio so you can have the financial freedom to follow your life’s true passions.

I have tried to take speculative investing out of the equation by focusing instead on income (interests, dividends, distributions, residuals, royalties, and participations) to really create passive income. The arbitrageur focuses on cash flow and neglects the short term game of capital gains.

Please join me in this journey to find my voice and help others find theirs, through The Arbitrageur.

God bless you and remember that:

[insanity is doing the same thing over and over again and expecting different results.]

and that …

[the difference between a madman and a genius, is that the madman has yet to know success.]


I am not a Wall Street Big Shot nor do I pretend to be.  I am not a certified financial advisor, tax or securities expert, a licensed attorney, accountant, or broker.  What I hold is a BS in Industrial Engineering, and I have been studying the markets since 2008. After years of research and investing my own money, I believe that I have deciphered the key to financial independence. While I do consider The Arbitrageur worthy of your time and money, it is not a guarantee for success. Market conditions and regulations are ever changing and the arbitrageur system must evolve with them. This is why you should always do your homework first and seek professional advice before investing.

Meanwhile,  I invite you to subscribe to our blog as part of your investing homework. Let me also hear from you on Facebook, Twitter, GoooglePlus, and YouTube.

[you may not be able to control all the events of your life, but you are always able to control how you react to them.]

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