1. Profits Run, Inc. (“Profits Run”) publishes newsletters, trading, training and educational products related to various markets (collectively and hereinafter referred to as the “Programs”) that are offered for a fee to the general public (fee paying persons hereinafter referred to as “Subscribers”).
2. Profits Run is a research publishing firm utilizing the publisher’s exception to the definition of an “investment adviser” in the Investment Advisers Act of 1940. None of the Programs or any other form of communication delivered or created by Profits Run provides individual, customized investment advice. The Programs are intended to supplement your own research and analysis. The information published is based on the opinions, statistical and financial data and independent research of Profits Run. Profits Run’s Programs do not reflect the views or opinions of any employee, officer or representative of Profits Run.
3. Profits Run publishes information regarding stocks, options, ETFs, and currencies (“Financial Products”). However, the information in our Programs is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by Profits Run a customized or personalized recommendation to buy, sell, hold, or invest in particular Financial Products. Subscribers will need to depend on their own trading and investing skills in order to handle problematic situations that may arise, including consultation with their own brokers and financial advisors as they deem appropriate.
4. Profits Run, its employees, officers and representatives are not responsible for any errors or omissions in any of Profits Run’s newsletters or Programs. Any commentary, analysis, and opinions represent the views of Profits Run, and are subject to change at any time without prior notice. The information provided in the Programs contains material which is obtained from sources which Profits Run believes to be reliable. Although Profits Run believes the information to be reliable, Profits Run has not independently verified or otherwise investigated such information. As a result, Profits Run does not guarantee the accuracy or completeness of any such information. Profits Run’s Programs are not a solicitation or offer to buy or sell any Financial Products.
5. Please note the disclosures below:
a. INDIVIDUAL RISK TOLERANCE, INVESTMENT GOALS AND OTHER FACTORS MAY VARY AMONG SUBSCRIBERS, AND ANY RELIANCE, USE OR TRADING BASED UPON THE INFORMATION OR RECOMMENDATIONS IN THE PROGRAMS MAY NOT BE SUITABLE FOR ALL INDIVIDUALS.
b. The Programs are not a solicitation or offer to buy or sell any Financial Products nor are the Programs in any way intended to be a solicitation to provide private money management services.
c. Trading and investing involve substantial risk. Profits Run does not make any guarantee or other promise as to any results that may be obtained from using the Programs. Past performance is not necessarily indicative of future performance. No Subscriber should make any investment decision without first consulting his or her own personal financial advisor, broker or consultant and/or conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. Profits Run disclaims any and all liability in the event any information, commentary, analysis, opinions, or recommendations in the Programs prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses by Subscribers. Any reliance upon or use of the Programs is at the risk of the Subscriber.
d. Subscribers should not enter any trade without investigating the worst-case scenario of that trade. Trading securities such as stock options can be extremely complicated, and as a result, it is important to understand the risk of these trades before execution of such trades. For example, aggressive positions in options have a greater probability of losing, while less aggressive positions are less likely to yield substantial profits. Similarly, far out-of-the-money options are unlikely to finish in the money, and options purchased close to their expiration dates are very high-risk and, thus, are more likely to win big or lose big very quickly.
e. The Programs provide non-customized, non-personalized recommendations. Subscribers are free to follow the recommendations and use the information, in whole or in part, or not at all. The decision to take profits, losses, add positions, or liquidate positions remains in the sole discretion of the Subscriber.
f. Subscribers may submit questions to Profits Run by submitting a ticket at our support website at www.profitsrunsupport.com or by emailing us at email@example.com. However, since Profits Run does not provide customized individual recommendations, Profits Run will only answer Subscriber questions that do not involve providing customized or personalized trading advice.
GENERAL RISKS OF TRADING AND INVESTING
It is vitally important that you read and fully understand the following risks of trading and investing:
All securities trading, whether in stocks, options, or other investment vehicles, is speculative in nature and involves substantial risk of loss. Subscribers should review the information available at the websites of the Securities and Exchange Commission (“SEC”) at http://www.sec.gov and the Financial Industry Regulatory Authority (“FINRA”) at http://www.finra.org. Subscribers can also review public companies’ filings at the SEC’s EDGAR page (http://www.sec.gov/edgar.shtml). FINRA’s website also contains information about investing. Prior to making any investment decisions, Subscribers should consult with their financial advisor, broker, or consultant and make independent investigations before acting on information provided by Profits Run or any other person. Most information in the Programs is derived directly from information published by companies or submitted to governmental agencies; however, even though Profits Run evaluates the information, Profits Run does not independently verify the accuracy of the information. Therefore, Profits Run does not provide any assurances that the information is accurate or complete. Profits Run does not in any way warrant or guarantee the success of any action taken in reliance on information provided by Profits Run.
1. You may lose money trading and investing. Trading and investing in securities, ETFs, options, equities, and foreign currencies is always risky. For that reason, you should trade or invest only “risk capital” – money you can afford to lose. Profits Run recommends that Subscribers risk no more than 10% of their liquid net worth. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more.
2. Past performance is not necessarily indicative of future results. All investments carry risk and all trading decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not result in losses. Subscribers should fully understand all risks associated with any kind of trading or investing they choose to do.
3. Unless specifically noted otherwise, all profit examples provided in our websites and publications are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not indicative of future results. Hypothetical performance results have many inherent limitations. Also, the hypothetical trades referred to in these materials do not include the costs of subscriptions, commissions, and other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading programs in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect trading results. Profits Run makes no representations or warranties that any account will or is likely to achieve profits similar to those shown, because hypothetical or simulated performance is not necessarily indicative of future results. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
RISKS OF INVESTING IN STOCK
Investments always entail some degree of risk. Some investments in stock cannot easily be sold or converted to cash. Check to see if there is any penalty or charge you are required to pay if you must sell an investment quickly. Investments in stock issued by a company with little or no operating history or published information involves greater risk than investing in a public company with an operating history and extensive public information. There are additional risks associated with trading a low priced stock with a limited trading market, e.g., so-called penny stocks. Stock investments, including mutual funds, are not federally insured against a loss in market value. Stock you own may be subject to tender offers, mergers, reorganizations, or third-party actions that can impact the value of the stock. Pay careful attention to public announcements and information sent to you about such transactions. They involve complex investment decisions. Be sure you fully understand the terms of any offer to exchange or sell your shares before you act. In some cases, such as partial or two-tier tender offers, failure to act can have detrimental effects on your investment. The greatest risk in buying shares of stock is having the value of the stock fall to zero. On the other hand, the risk of selling stock short can be substantial. “Short selling” means selling stock that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short selling is a legitimate trading strategy whereby the seller attempts to profit by buying the stock at a more favorable price than the price at which they sold short. However, when the price of a shorted stock rises, the risk of loss is unlimited.
SPECIFIC RISKS OF STOCK OPTIONS TRADING
When you open a stock option account, you should receive a booklet entitled “Characteristics and Risks of Standardized Options,” which is also available on the Option Clearing Corporation’s website at http://www.optionsclearing.com/about/publications/character-risks.jsp. This booklet contains an in-depth discussion of the characteristics and risks associated with stock options trading. Profits Run strongly encourages you to carefully read and understand this information.
1. Assignment of exercise to writers. As a writer of a stock option, you may be assigned an exercise at any time from the date of sale through approximately two days after the date of expiration. The consequences of being assigned depend upon whether the writer of a call is covered or uncovered, as discussed below. Since an option writer may not be informed of the assignment of exercise until up to two days after expiration, special risks can come into play. For example, an option writer who sells out their underlying position upon expiration may find out the next day that they have to surrender stock they do not now own.
2. Risk of unlimited losses for uncovered writers of call options. A “naked” or uncovered writer of a call option is at substantial risk should the value of the underlying stock move unfavorably against the position. For a naked call writer, the risk of loss is theoretically unlimited. The obligation of a naked writer that is not secured by cash to meet applicable margin requirements creates additional risks. A harsh adverse move in stock prices can create steep margin call scenarios in which a brokerage firm may liquidate other holdings in the writer’s account(s) to cover the option. Since pricing of options tends to be magnified relative to the underlying stock, the naked writer may be at significantly greater risk than a short seller of the underlying stock.
3. Deep out-of-the-money options carry high risk of loss. Although purchasing stock options at strike prices significantly above or below the current market price can be very inexpensive, you are at high risk of losing your money. There are two versions of deep out-of-the-money options: A deep out-of-the-money call is an option to purchase shares of stock at a price far above the current market price. A deep out-of-the-money put is an option to sell shares of stock at a price far below the current market price. Although these options seem inexpensive, the chances of making a profit on such transactions are extremely low. Therefore, novice traders should avoid buying deep out-of-the-money options.
4. Out-of-the-money options near their expiration date carry a high risk of loss. The closer you buy an out-of-the-money option to its expiration date, the less likely it is to end up profitable. Although these options are cheap, in order to profit in such situations, you will need precise timing and the occurrence of a major event that significantly moves the underlying security in your favor. The risk associated with these options is high and you are likely to lose your entire investment in these positions.
5. Placing contingent orders, such as “stop loss” orders, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.
Each Program Profits Run provides will offer a special discussion of risks. As you move through the educational materials that teach you how to use each service, be sure to carefully read the risk sections. It elaborates on risks specific to the types of recommendations you might see in that service. Do not enter any trade without understanding all risks associated with that type of trading.
Conclusion: Once again, Profits Run stresses the importance of understanding all of the risks of any form of trading or investing that you choose. One should fully understand the worst-case scenario prior to trading or investing real dollars. Past performance is not necessarily indicative of future results. You take full responsibility for all trading actions, and should make every effort to understand the risks involved.
RISKS ASSOCIATED WITH FOREX TRADING
Off-exchange foreign currency transactions involve the leveraged trading of contracts denominated in foreign currency conducted with a futures commission merchant or a retail foreign exchange dealer as your counterparty. Because of the leverage and the other risks disclosed here, you can rapidly lose all of the funds you deposit for such trading and you may lose more than you deposit.
Forex trading is not conducted on a regulated market or exchange. Before you engage in any retail foreign exchange trading, you should confirm the registration status of your counterparty.
Trading foreign currencies can be challenging for any investor. However, before deciding to participate in the foreign exchange markets, Subscribers should carefully consider their investment objectives, level of experience, and risk tolerance. Most importantly, do not invest money you cannot afford to lose.
There is considerable exposure to risk in foreign exchange transactions. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency. Trading currencies may be susceptible to sharp fluctuations. The leveraged nature of foreign exchange trading means that any market movement will have an equally proportional effect on deposited funds. Leverage may work against you. Not only may Subscribers get back less than they invested, but Subscribers may lose the entirety of their investment or more. When trading in foreign exchange markets, Subscribers should only use risk capital. Trading foreign exchange carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. Subscribers should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial adviser and other professionals.
TESTIMONIAL AND SUCCESS STORY DISCLAIMER
The FTC rules require any company using testimonials to advise you regarding the probability of success. No representation is being made that you will achieve profits or the same results as any of the persons providing the testimonials. No representation is being made that the person providing the testimonial continued to experience profitable trading after the date on which the testimonial was provided, and in fact such person may have experienced losses. The Subscribers who are sharing their stories have purchased a variety of Profits Run’s products and services ranging in price from less than a thousand dollars to more than ten thousand dollars to achieve these results. Also, none of the Subscribers have been directly compensated for telling their stories. In some cases, Profits Run has encouraged Subscribers to submit their experiences for entry into various contests.
Not all Subscribers have trading discipline. Some Subscribers modify Profits Run’s methods, ignore the rules, or risk more money than they should. No two Subscribers who use any specific program will achieve the same results even though they have been given the same program. Some Subscribers use more than one program. Any positive results you read about from our Subscribers do not guarantee that you will make money. These results are not typical, and the average Subscriber does not complete all the training, never asks for help, and does not take control of their portfolio.
The Programs provided are not designed or intended to qualify Subscribers for investing. Profits Run’s Programs (including but not limited to training and coaching materials, and newsletters) are for educational and/or illustration purposes only, and are provided with the understanding that Profits Run is not engaged in rendering personalized or customized investment, tax, financial, accounting, or other professional opinions. Please note that investing involves substantial risk. Any decision to invest in stocks, ETFs, forex, options, or other markets is a personal decision that only should be made after thorough research, including a personal risk and financial assessment.