Approach

Our approach is a disciplined, countertrend approach to investing that uses key metrics to pick stock options for relatively modest gains. The approach seeks to increase gains through small wins rather than big wins. It attempts to be relatively conservative within an ultra-aggressive category of investing.

There are many clichés when it comes to investing, but rarely are their contradictions exposed. For example:

So, which is it? At Broken Investing, we believe there is one cliché to rule them all:

“Buy low and sell high.”

You cannot beat the market by doing what all market participants do. You must leave the crowd to beat the crowd. We do not believe anyone would recommend our strategy, and, ironically, we would not recommend anyone else use our strategy. Our strategy works because we have tested it, practiced it, and tweaked it over time. We have spent years creating proprietary indicators and models that provide us a strategic advantage in investing decisions. Let us do the trading for you. Below is a general description of our strategy.

Buy Low

At Broken Investing, we use a countertrend approach. This means that we use complex and proprietary indicators to determine when a security is "low" and ready to "bounce." The proprietary indicators involve relative strength, moving averages, and volume. We buy securities others have abandoned. Similarly, we “go short” on securities that others have chased. 

Sell High(er)

We do not seek to sell high, per se, but rather aim to sell “higher.” By using call options (and put options to go short), our investments can make money with relatively small bounces in price. We wait for our investments to begin to revert to the mean, and then we capitalize on the profits. 

Inspired by a foundational research article called “Small Wins” written in 1984 by the legendary sociologist Karl Weick, Broken Investing seeks to make small and quick gains from the regular trading of derivatives (options) and the compounding of gains.