Top of Mind Risks
I personally use the FWB buy and sell signals on the majority of my retirement portfolio.
The following is not an exhaustive list of every risk possible, but it is a listing of the top of mind risks I think about the most. Faithful Wealth Builders does not know your goals, risk tolerance, or experience and we cannot give personalized advice. Please review these risks and consider other risks for yourself to determine if our approach is appropriate for you.
Past performance may not be indicative of future results
While I personally gain a lot of comfort knowing this strategy would have outperformed buying and holding the S&P 500 index over the last 96 years through many different market conditions including the Great Depression, no one knows what the future holds and the future could be materially different than the past.
The FWB strategy occasionally requires the follower to enter a trade
and not doing so, or entering a trade incorrectly could result in poor performance. Each subscriber is responsible for making timely and accurate trades in their own accounts. I am simply publishing what I am doing in my own account each week and what you do or don't do with that information is your responsibility.
“Market on Open” buy and sell orders guarantee a fill at the next open
But they do not guarantee a minimum fill price. Weekly opening fill prices can be materially different than the prior week’s closing price. All back testing results assume the opening price was filled when following the trading strategy buy and sell recommendations.
“Limit Orders” guarantee the price at or better than your order if filled
But your order may not be filled if the price moves unfavorably away from your order limit. For those who intend to use limit orders, you may need to closely monitor the market open and adjust your limit accordingly to get a fill. Its possible that your order limit fill could be better or worse than the result you would have gotten with a market on open order.
