BUKEFALOS

What makes Wealth Builder so incredibly successful, and what is the difference between investing and day trading / swing trading?

When we released Wealth Builder’s latest annual report, we received an enormous response from people with one thing in common: a passion for and interest in stock trading. What was especially exciting was that so many of them were ordinary investors who had discovered an interest in trading. Many emailed us with questions: what makes Wealth Builder so successful, and what is really the difference between trading and ordinary investing?

What makes Wealth Builder so successful comes down to two components, not just one. The first is our proprietary algorithm, Bukefalos, which identifies and trades stable, large listed companies every week. But that is only part of it. The second, equally important component is our strategy: how we trade. Together, these two equally important components create a robust system for successful stock trading, commonly referred to as trading or swing trading. Many investors emailed us asking what the actual difference is between ordinary investing and trading.

The main difference is that with ordinary investing… well, you simply invest. You save and invest your money and wait to withdraw it until you need it for something. Some invest with a short-term horizon, while others invest for the long term. In trading, you buy a position and sell it once it reaches a specific target. You actively trade stocks. You buy and sell shares over shorter or longer periods – you trade. That is, of course, a simplified explanation.

One of the secrets behind our success is that we always take part of the profit. We secure some of the profit almost immediately, at 4%.

We choose to take this as what we call a CASH-OUT, meaning a payout or direct withdrawal. What people do with their CASH-OUT varies. Some reinvest it, for example when trading smaller positions or building up their capital. We choose to withdraw it immediately.

Regardless, taking that first profit is important. For example, if Putin were to make an unexpected announcement and the market suddenly dropped, we would already have secured part of the profit. We do not have to remain stuck in positions indefinitely while waiting for the market to recover with our entire position intact. Instead, we have the opportunity to achieve strong results more quickly through smaller profits.

Of course, you can never fully protect yourself against major stock market declines that can appear out of nowhere one morning, but this approach can improve the odds.