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Here's what you will
get!
...step-by-step guidelines, a plan, an active model portfolio and a
strategy that generates great returns with low risk.
Here are the 12 steps to embark on a winning ETF trading and
investment strategy:
-
Trading Psychology - the 14
stages of investor emotions
-
Trading Strategy - details
the ETF stock trading model
-
The Game Plan - basic
ETF stock trading strategy fundamentals
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Trading ETFs - low cost
index funds that trade like stocks
-
Stock Chart - install free
stock chart
-
Asset Allocation - setup
and fund your ETF stock portfolio
-
Buy Order - limit and stop
order entry points
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Sell Order - stop loss exit
points
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Action Log - keep investment
notes
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Profit Target - upside price
movement
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Trading Homework - review
ETF stock trading activity
-
Active Model Portfolio - compare
ETF stock trading action
Tip: use
my strategy to back test first. But better yet,
create a portfolio (any free financial site e.g. Yahoo Finance)
and paper trade using my step-by step instructions and investment
guidelines. And when you get comfortable, open an account and reap
the benefits of self-directing your investments. It's easy and you
will appreciate to have taken your financial future into you own
hands - I know, I did!
What's the catch?
No catch or hidden
options ~ My ETF stock trading and investment strategy guidelines
are free of charge.
Why am I
providing a free service? First of all, I wanted to
document my trading plan, because I am maintaining 5+
portfolios, large and small. To be consistent with my
trading strategy, I needed to have a living document that is easy
to maintain and easy to review. Well, what better way is there to
put all together on a website. Now that it is done, I decided to
publish it and share it with the world. If you have a comment or
suggestion, just send me an
email.
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Please read on... or
checkout my active model portfolio
S&P
500 ~ big picture performance snapshot...
S&P 500 @ 1035 (10% correction)
is now the support level |
Are you ready to declare your ETF
stock trading
and investment independence?
YES?
click here to start your step-by-step
instructions.
NO?
please read on...
Managing your own money is an important
responsibility that requires financial maturity and education. I
suggest reading books by individuals that know about the truth of
successful investing, instead of buying expensive subscriptions
trading software - checkout my recommended
reading list and then visits your public library and check them
out. Becoming your own portfolio manager, if done right, should not
become a daily chore that requires you to be in front of a computer
24/7. Once your portfolio’s allocation has been determined (with your
risk tolerance and goals in mind), stick with it and periodically
tweak it. Trust me, it's much like a growing a garden, you’ll need
patience and discipline.
For me, stock trading
comes down to three things -
First, using simple technical
analysis to boost profits. Second, protecting earnings and minimizing
risk as much as possible. And last, managing trades from start to
finish.
The Best Online ETF Stock Market Trading and
Investment Strategy -
is all about momentum investing while it takes advantage of brief
price swings in strongly trending Exchange Traded Funds (ETFs).
Exchange-traded funds offer excellent growth potential without
subjecting investors to the risk and unpredictability associated with
owning a few individual stocks.
Stock Market
Technical Indicators - my strategy's decision making
process uses very specific settings of the Exponential Moving
Average (EMA) and the Parabolic SAR indicator. These buy, hold and
sell
signals take the mental (emotional) aspect
out of ETF trend trading decisions.
Risk Tolerance
- it's the degree of uncertainty that an investor can handle in
regard to a negative change in the value of his or her portfolio.
My goal is to get you to sell when you should, instead of holding
and hoping. I strongly believe that if you never know when you’ll
get out, that you don’t really have a plan. And without a plan,
you’ll never be able to outperform as an investor.
Asset Allocation
- the trading strategy divides your portfolio into specific equity
allocations of swing trades (3 to 10 day holding period) and
investments (long positions).
Bull vs. Bear
Markets -
In a bull market everybody makes
money, but in a bear market it’s more difficult especially for
long-term investments. In 2008, most long-term investors have lost
many years of paper profits. My trading strategy is trying to
reverse the long-term investment trend and concentrate on capital
preservation.
Tip of the day
- Don’t follow the crowd.
When everyone else seems to be jumping into an investment, that
might be just the right time to stay on the sidelines. Stay ahead
of the crowd. Get in early and get out when the crowd is buying.
This is the same as buy low, sell high.
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...excellent trading and investment ideas are
offered by our sponsors ~ please check them out!
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Still
Undecided?
Ask yourself:
"Should I buy stocks on the
way down?"
...well gee, if a stock was a good buy at
$45 a share, it’s bound to be a better buy at $35 a share. And
when it sinks to $25, you could be very
sorry you went along for the ride.
Let’s Review
My ETF Stock Trading and Investment Strategy one more time.
My stock trading
strategy is so simple, that you don’t have to read through a
300-page workbook and or listen and view dozens of videos. Yes, a
beginning trader needs more time to learn trading terminology
which we have provided on our website. However, those who have
done some trading will find it easy to execute my strategy. And
when in doubt, you can follow my model portfolio to review my
trading activities.
We provide specific
guidelines for entry and exit points, asset allocation and
portfolio diversification. Plus a detailed
game
plan which includes three basic trading fundamentals: First, using
simple analysis to boost profits; Second, protecting earnings and
preserving capital (minimizing risk); And last, managing trades
from start to finish.
Always remember,
without a trading plan, you’ll never be able to outperform as an
investor. My information is free and it will
get you trading with a proven stock trading plan - a sound trading
strategy - in no time at all.
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Exchange Traded Funds(ETFs) vs. Mutual Funds
Are you a mutual funds investor?
Our
trading strategy does not invests in Mutual Funds, because we like to
control our investments like stock equities. Here is a comparison:
(source: ETFGuide.com)
Are mutual funds better than ETFs?
Not necessarily. Each financial product has its strengths and
weaknesses. Any fair comparison should be done in the context of not
just performance, but tax efficiency, fees/total ownership costs,
risks, structural differences of each product and if the fund
objectives match the financial objective(s) of a particular investor.
Always refer to a prospectus for detailed information before
investing.
Are mutual funds less risky to own than exchange
traded funds?
Not necessarily. ETFs, like mutual funds, come in a variety of shapes
and sizes. The level of risk in an ETF or mutual fund is often
determined by the portfolio holdings within the fund. Both mutual
funds and ETFs can track a variety of indexes and sectors. Some
indexes or sectors will be more risky and volatile than others.
However, there's no substantiated research to prove that ETFs are any
more or less risky compared to mutual funds.
How are mutual funds and ETFs different?
ETFs offer investors intraday liquidity and are bought and sold with a
brokerage account. Mutual funds are priced at the end of the day and
cannot be bought or sold during regular trading hours. Also, ETFs are
traded on a stock exchange, whereas mutual funds are bought and sold
directly with the fund company or through a mutual fund trading
platform.
How does the cost of mutual funds compare to
ETFs?
Generally, investors buying or selling ETFs will pay a transaction
commission to a broker, whereas investors buying or selling no-load
mutual funds directly from a fund company pay none. However, some
brokers impose a commission to buy or sell no-load mutual funds. Other
so-called "no transaction fee" mutual funds don't charge a commission
to buy, but often carry higher expense ratios. Also, ETFs do not
impose back end redemption charges like many mutual funds.
Ultimately, any fair cost analysis between ETFs and mutual funds
should look at the total spectrum of expenses - not just the
transaction fee to acquire the ETF or mutual fund. Pay close attention
to the expense ratio, portfolio turnover, and tax efficiency of a
mutual fund versus an ETF. Always refer to a prospectus for detailed
information before investing.
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Advanced Exchange Traded Funds Strategies
Hedging Strategy -
ETFs are effective hedging tools for managing
risk. For example, investors can guard against over concentrated
equity positions by using ETFs as single stock substitutes. This
hedging technique can reduce risk and volatility by letting
stockholders diversify away from large equity positions to the
companies they own or work at. Also, inverse performing or short ETFs
allow investors to hedge against a market decline.
Leverage Strategy -
Like individual stocks, ETFs can be leveraged with margin. Margin is
borrowing money from a broker to buy securities and involves
considerable risk. Minimum maintenance requirements are enforced by
FINRA (Financial Industry Regulatory Authority), the NYSE and by
individual brokerage firms. While margin investing can be profitable
for investors correct about the direction of their holdings, the
interest charges or borrowing costs can deteriorate returns.
Sector Rotation Strategy
- Convenient market exposure to various
industry sectors is readily obtained with ETFs. By tactically shifting
assets, investors can over and underweight specific sectors according
to their financial research, economic outlook, or market objective.
Owning or selling concentrated business segments allows ETF investors
to capitalize on both positive and negative sector trends.
Tax Loss Harvesting Strategy -
Wash-sale rules don’t permit investors to realize a stock loss if they
repurchase the same stock within 30 days. This problem can be avoided
with smart tax loss planning. By redeploying the loss proceeds into an
ETF in the same sector as the stock, for example, the wash-sale rule
can be avoided. This allows investors to offset any capital gains with
capital losses and still maintain market exposure.
Options Strategy -
ETF investors have a multiplicity of option
strategies at their disposal. purchasing call or put options is an
aggressive technique. An options investor can control a large amount
of ETF shares by paying a premium. The premium price is a fraction of
what it would cost to purchase the shares in the open market. This
provides an options investor with a great deal of leverage and a high
risk/reward opportunity. ↑
Other ETF/Stocks Resources
"To be prepared against surprise is to be
trained. To be prepared for surprise is to be educated."
-James Carse
http://finance.yahoo.com/etf
http://moneycentral.msn.com/investor/research/etfs.aspx
http://en.wikipedia.org/wiki/Exchange-traded_fund
http://www.ishares.com/home.htm
http://money.cnn.com/pf/funds/etf/
http://www.investopedia.com/terms/e/etf.asp
http://www.morningstar.com/Cover/ETFs.aspx
http://www.bloomberg.com/markets/etfs/
http://www.etfeducation.com/
http://www.amex.com/etf/eductn/etf_edu_indiv.html
http://www.etfguide.com/index.htm
http://www.nasdaq.com/investing/etfs/ETF-trading-strategies.aspx
http://www.proshares.com/about/index.html
http://www.globalspdrs.com/
http://www.vanguard.com/jumppage/etfs/index.html?WT.srch=1
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