What is YachtMoney and Why are We Building It?
I want to begin by being completely transparent in my history. I feel that transparency is essential in life, business, and the especially the market.
You can read a more detailed account of how I got into trading here: “My Adventures in Options Trading”.
Now, the question at hand. What is YachtMoney?
“We like to think of YachtMoney as the love child of Betterment and Robinhood, injected with a large dose of steroids.”
YachtMoney began as a pet-project to assist in squeezing out gains from the market.
“Trading in it’s purest form is simply a game against one’s self.”
It has nothing to do with the current news events or what the market is trying to “do to you”. The stock market (as with any market) is just a big ocean of opportunity, the challenge lies in mastering one’s craft for navigating the seas.
Ask any veteran trader and the biggest challenge with trading is staying out of your own way. The moment that emotion slips into the equation everything can (and will) turn against you.
The other hurdle we face is that a majority of millenials lack access to large sums of capital. The spectrum of products that offer low-risk exposure to aggressive gains for smaller account sizes is virtually non-existent.
We have been brought up to believe that you can’t capture any meaningful upside in the market without a six figure brokerage account.
A Quick Example: A Boy Named “Joe”
Joe starts saving his hard-earned money while working at McDonalds and slowly works his way up to an account balance of $5,000.00.
Joe is extremely excited to put his money to work and buy his favorite tech stock, Apple. He downloads Robinhood onto his phone, he has been hearing all of the hype on CNBC about Apple going through the roof and blindly puts in his very first order.
The first question is this: How many shares of Apple can he realistically buy? 25 to 35?
If the stock goes up ten dollars he makes $300.00 or roughly 5-7%.
You are most-likely thinking to yourself what’s wrong with a return of 5-7%?!
Nothing at all, but we feel we can create greater gains for young investors.
How Would YachtMoney Help Joe?
Let’s introduce Joe to a scary product called “options” (also known as derivatives). Options have a very bad rap in the financial community, and more specifically to the retail investor.
I will be the first to admit if Joe went out and bought a bunch of calls, he would more than likely lose all of his money.
But if we were to walk Joe through the concept of options, we could show him how to build low-cost and low-risk option spreads.
We would then alert him of when a specific equity or product had a good entry point based on current market cycles and technical analysis over multiple time-frames.
We would also keep him out of trouble by automatically managing his trades (selling for maximum profit, and exiting for minimal losses). This system would basically protect Joe from himself, removing any or all of the emotions tied between him and his hard-earned savings account.
The other goal is to create a community and platform where Joe can become a more experienced investor.
A majority of retail investors missed out on the massive move after the elections. Six months later the mainstream media is finally advising retail to jump into the market after nearly 70% of the move has already happened.
We are not saying this is the top, we are just saying that retail missed the meat and potatoes of the move.
Robinhood and Betterment are great tools targeted at the passive investor demographic, but they serve a different purpose.
We like to think of YachtMoney as the love child of Betterment and Robinhood, injected with a large dose of steroids.
Who Should Download YachtMoney?
We have a strong passion for the markets, and we have an even stronger passion for educating and empowering individual investors.
YachtMoney was designed for anyone who wants to learn how to navigate the markets (regardless of their account size or experience).
Interested in learning more about options trading, the markets or overall market cycles?
Download YachtMoney at: YachtMoney.io