Trading Where The Action Is

by Big A

Anyone can look at an old chart and say, "You should have done this or that."

Training Course

 But real trading is in the trenches, that is the live market. I want you to have every possible advantage. So, I let my students follow my trades, as I buy and sell, real time. Since my system doesn't take very long, you can check in everyday and not be late for dinner. Nothing is left out and nothing is left to the imagination. You will watch and listen as I plan my trades and the results will be clearly shown in my accounts and yours if you follow along. For a full six months you will look over shoulder, see how I trade, and actually do the same trades. And within a couple months, you should have the confidence (and the profits) of a real trading pro.

F.A.Q. ON ETF TRAINING COURSE

Q. How much money do I need to start?
A. A $5,000 account is suggested, although you can start with $2,000 and trade "mini" contracts until you build enough equity to trade the larger ones.

 Q. Must I watch the market all day long?
A. No. Although this type of trading can be short-term, you can trade without following the market by using end-of-day data. This is not a full-time job; five, ten maybe twenty minutes in the evening will let you duplicate my results. If you want to learn how to trade like a seasoned pro click on the blue bar to your right and learn about Trading in the Trenches

 If you want an EFT Training Course you might want to click on the blue box on the right of this article and see how you could be where the action is.

Exchange Traded Funds Protect & Diversify

ETF Trend Trading

With the tough financial markets everywhere around the world coupled with the high number of unemployment and job losses, many people are realizing the need to make investments to ensure financial security in future. There are many types of investments available from real estate, mutual funds, stocks, etc. one type of investment gaining prominence all over the world right now is Exchange Traded Funds or ETFs. Exchange Traded Funds are assets just similar in so many ways to mutual funds but they are traded publicly on the stock exchange and can be bought or sold at any time when the stock markets are trading. Many people start to wonder the time this type of investment came into the market and how. The first form of ETFs was introduced on the American Stock Exchange and Philadelphia Stock Exchange as the Index Participation Shares. The growth of this product was ended abruptly when the US authorities took it off the market after a lawsuit by the Chicago Mercantile Exchange.

ETF Trend Trading History

ETFs were however reborn in the US BY Nathan Most and Steven Bloom, who were officials of the American Stock Exchange after ETFs had become popular in Canada where it was launched in 1990. The new product called the Standard &Poor’s Depository Receipts was launched in the beginning of 1993. The SPDR fund is the biggest ETF in the world. There are several types of Exchange Traded Funds available such as Plain Vanilla, Commodity and Currency ETFs. Plain Vanilla ETFs consists of funds that contain many companies and all of their investors are given ownership of small bits of these companies. Investors who trade in Currency ETFs are given part of the income gained by the fund. Each investor is required to take note of his or her share of the ETF’s revenue generated, losses and other day for a particular period of time. A commodity ETF is just like a currency ETF as its investors gain a part of the income generated by the ETF. They are also required to keep note of the data of their fund for a particular period. It’s important that investors understand the fundamentals of every type of ETF so they can make well-informed decisions.

ETF Trend Trading Training

If you would like to protect your investments by etf trend trading in ETF you can learn from one of the best. Click on the Blue banner to your right and discover how former hedge fund trader Big A has been making steady gains with ETF Trend Trading Training

EFT Trading and Investing gives you Options

ETF Trading Investing Strategies

By Bobbie James

ETFs are a top-down traders dream. They cut out all of that messy fundamental analysis, which means they do not need to go snooping around financial reports to figure out what companies to invest in. They can just buy an ETF in the general economic area that tickles their fancy, and rest assured that most of that non-systemic risk will be diversified away. So how should you be using ETFs in your portfolio?

ETF Trading Gives Diversification

1. To Instantly Diversify Your Portfolio for an Extremely Low Cost. ETFs allow the small time investor to get immediate diversification with a negligible expense ratio. If you simply want to invest the "fire-and-forget" way, an ETF is the way to go. Just stick to a well diversified one like an S&P 500 (NYSE: SPY) or the Dow Jones Industrial Average (NYSE: DIA). That way, you are invested in the market, but without all of the hassle of trying to find a good mutual fund or hot stock pick. Numerous studies have shown that beating "the market" is nigh near impossible to do consistently. The closest an average investor can get to "the market" is through ETFs. That can save you an immense amount of time and headaches. Since the majority of financial professionals cannot beat the market in the long-run, why bother beating your head against the wall as well? Don't fight the market, become the market, a la ETFs.

2. To Focus on Areas of Opportunity

There are plenty of ETFs that deal with numerous countries, regions, and macroeconomic subjects. For example, you could put a little gold in your portfolio by buying a SPDR Gold Share (NYSE: GLD), which will closely track the spot price of gold. If you feel that China is going to outperform the rest of the world over the next 10 years, you could buy shares in iShares FTSE/Xinhua China 25 Index (NYSE: FXI). There are over 800 ETFs on the US market, and if there is an area that you want to invest in and get immediate diversification with low costs, you can be sure to find an ETF that fits your needs. This also fits well with acquiring a globally diversified portfolio. The typical IRA and 401K probably doesn't include investments in Singapore or Hungry. ETFs allow you invest on a global scale, but with many of the headaches and risks associated with foreign investment mitigated.

3. Better Understand the Timing

Since ETFs are indexes of stocks, they react more to big economic news than individual firm news (unless it is a really big firm, like BP or Chase). As such, you need to understand your economic indicators and when they are released. If you are thinking about getting in or out, be very aware of when the Fed is meeting, when government employment reports are released, and when the big boys in the index are release their earning statements. Those days will usually show much more volatility than the other days in-between. If you are investing in the long haul, catching the stock after a bad economics report can allow you to get in during a price dip. Half of investing is timing, so know what events are coming down the pipeline.

4. To Play the Volatility

That brings us to a more advanced subject, profiting on volatility. In these troubled times, the market is making some big swings. If the market is moving a great deal, the ETFs that track the market are also moving. Since options are available on ETFs, it may be worthwhile to utilize straddles and make money on those big movement days. They may not happen very often, but you only need one or two windfalls to make a profit. This is not something a beginning investor should get into. Trading options and utilizing various option strategies can be a bit complicated. This is only advised for investors that have a good grasp of options, options pricing, and option strategies.

ETF Trading To Manage Risk and Insure Your Portfolio

People insure their cars, houses, health, and the wellbeing of their loved ones (life insurance). However, not many insure their portfolio. This is especially important the closer one gets to retirement and the need for those funds gets closer and closer. Therefore, far out of the money put options on an ETF that closely resembles your portfolio is a great way to protect against those Black Fridays. It usually doesnt even cost a whole lot. Look at it like a cost of doing business or insurance. You may never need it, but how would you like to be the person that is looking at retirement and 1 week beforehand the whole market plummets? The closer you get to that withdrawal date of those funds, the more options you should be using to hedge the systemic risk that exists in the markets. Leaving it all up to chance is simply foolish and dangerous. So don't get caught with your pants down at the last second. In reality, ETFs are probably the most intelligent way to diversify your holdings and minimize your management costs. They also provide great opportunities for making money on volatility and insuring against systemic risk through the use of options. If ever there was a "perfect" investment vehicle, ETFs are it.

I invite you read more on investing in exchange trade funds by visiting the blog at ETF Trend Trading where you can discover stellar returns with managed risk. I also enjoy reading Kirt Christensen's take on the use of options at Options Science which combined with EFT Trading can give you a lot of strategies that manage your risk

ETF Trading vs Mutual Fund Trading

ETF Trading Big  Picture Trends

For the knowledgeable, active investor who wants to participate in big picture trends, the Exchange Traded Fund (ETF) has many advantages over the traditional Mutual Fund. ETFs are far more transparent, efficient and economical.

Be A Control Freak.

You know it's true: the only person who really cares about the health of your portfolio is you. Using Mutual Funds to increase your net worth is like depending on the school cafeteria to improve your kids' diet. They act in their own self interests which are influenced by a lot of political elements you'll never be privy to.

Sector specific Mutual Funds are often managed by younger, inexperienced staff. They're looking to prove their worth to the fund family and your well-being may or may not serve that goal. The larger funds are managed by experienced managers who have alliances and interests unknown outside their companies. In addition, your buy and sell orders can only be filled at the daily open price. Intraday fluctuations do not show up in the fund's price.

A sector specific ETF is purely influenced by the stocks included in its holdings. You don't have to worry about a manager's extraneous motivations for trading or diversions. Barring any unusual events like a bankruptcy, merger or de-listing, your ETF basket remains the same. You may even chose when during the day to buy or sell an exchange traded fund - they trade anytime the market is open. Want in or out during breaking news effecting the markets? No problem with an ETF.

With ETF Trading -Knowledge is Power.

As an active trading investor, you follow the markets and keep abreast of the political and economic trends. Why would you want to turn over the power to act on that information to a third party Mutual Fund manager? Fund managers, in order to protect their turf, restrict the information they share with fund share holders to the legal requirements. During the lag time between reporting periods, they may move in and out of positions, even change the fund's primary focus, without your knowledge. Additionally, "window dressing" to create the illusion of a fund holding this quarter's winning stocks, is a time honored tradition that results in selling low and buying high, never a good way to make money.

Transparency is built into ETFs. They establish their holdings and are committed to retaining them. You know at all times what you own and you can clearly see the results of your decisions to buy or sell the fund.

ETF vs Mutual Funds

There's no need to dress-up a quarterly statement for reporting. Taxing Issues. Mutual Funds buy and sell positions unrelated to the tax implications for individual share holders. They may sell to meet redemptions and buy to put new deposits to work. This often results in short-term gains that increase your tax burden. The famous end of year capital gains distribution may also cause you to be "credited" with fathom gains you'll pay taxes on. An unexpected capital gain distribution is fair less likely from an exchange traded fund.


The timing of your ETF trades is strictly up to you. If waiting a few days or weeks to sell will shift your earnings into a lower tax bracket, you can choose to take the risk and wait. You put new or recycled money to work when it's best for you, not because you have a limit on the amount of cash you can hold. And you don't have to wait to find out what your taxable earnings are; you can see what your portfolio has generated at any time of the year. It just makes tax planning that much easier.

Lower Fees and More Options.

No options exist for traditional Mutual Funds. The opportunity to control assets without owning them only exists for individual securities and the ETFs that own baskets of stocks. And, just because that Mutual Fund bills itself as "no-load" don't think you're not paying the management's salary and bonuses. 12b-1 fees are just the ones you see. Transaction and management expenses are deducted from earnings before they ever get to your account, further reducing your gains.

ETFs have extremely low fees because no manager needs to be making adjustments to the fund's holdings - and no wondering what went out the back end. For active traders who want to look at the big picture instead of betting on individual company's ability to produce returns, the ETF is far superior to the old fashioned Mutual Fund in just about every way. For those who still think they can set it and forget it, letting a professional fund manager decide what to put their money into, they're going to pay for that privileged with their hard-earned money; working years longer than the investor taking control of their own accounts with ETF's and a proven trading system.

  If you want to know how you can participate in steady ETF trends and be mentored about ETF Trend Trading click on the blue box to the right and we will send you some exclusive valuable information

To slow and steady growth,
Big A

Long Term Success is Hard

ETF Trading Long Term Success

Let there be no illusions -- long term success in investing is hard. That is why there is only a small percentage that soundly beat the market averages year after year. During the down markets many long term "pray and hold" investors lose their cool and sell out at the worst time. Can economists, the government or your financial advisor predict how long recessions and bull markets will last? No, and neither can I. The difference is that I don't need to. When you have a price driven, proven technical trading system you don't need to know how long recessions or bull markets are going to last nor do you care. Please read the previous article on fundamental analysis vs. technical analysis. If you did not get it please email support@etftrendtrading.com

 Let their be no illusions about the hype and false claims on the internet. Anyone selling a course, newsletter or seminar promising 50% per month returns is trying to take you for a fool. I respect you more than that and because I know how the markets really work I won't make hype claims. Some months the ETFs I trade will trend and we will make 10-20%. Some months the market will be flat and my system will break even or lose a little. The important thing is long term success with low risk. Did you know that averaging only 6% per month starting with a $10,000 account will make you a millionaire in only a few short years?

Does Long Term EFT Trading Work

So why use hype when I can use the truth? The truth is my system will not make you 50% per month. My core system that requires only 5-10 minutes per night of "work". If you master my day trading system you can double the returns of the regular system, but it is more risk and requires trading 6-7 hours per day. My day trading system does come with my ETF course. Let's talk about some fundamentals.

 Let there be no illusions with the following: That the Federal Reserve can and will save us. The glory days of the stock market responding puppet-like to monetary easing are gone. With the federal fund rates now at incredibly low rates, the Fed no longer has much they can do. Both the equity and debt markets no longer trust the Fed to save them like they once did. The markets have spoken loudly that "trying to pay the left hand with the right hand" does not address in any manner the fundamental value challenges of the underlying assets. That Wall Street will rise again. For better or worse, the prestige, respect, and trust of Wall Street as the capital of the world's financial markets has been shattered, probably beyond repair. Recently in 10-08 this has been a true perfect storm. The most gilt-edged names on the Street have been forced to ask the government to bail them out.

 This is at great hypocrisy to capitalistic, free enterprise principles. They failed spectacularly, or are seeing such drops in their securities' values; call into question the basic viability of their business models. That Real Estate is, was or will be the answer. Like in all bubbles, once they are over it is quite easy to look back and say "How could we have been so foolish?" While real estate is sometimes value-creating, as when it supports business-building objectives like research and development, better corporate productivity, and general efficiency gains via providing space to combine enterprise/business units, at its essence it is either a flat or naturally depreciating asset class.

The myth that the house in which one resides, without capital improvement, will increase in value in any real terms, on a sustained basis beyond population growth, has been by far the biggest cause of the current financial mess. It will be years, if not decades before we will see meaningful, non-capital improvement- based investment return on the real estate asset class. The only good thing about these bad times is that they force us to look inward, distrust the hype and try new ways to protect and grow our portfolios.

EFT Trading and Technical Analysis

Trading with technical analysis instead of using fundamentals is not new, but might be to you. That is why it could be hard for some of you to believe the types of returns that I talk about on . Once you see it in action all doubts will be erased forever. If your portfolio is stagnant or dropping it is time to rethink your whole approach to the markets or at least diversify a portion to self trading. Mentorship with a proven system is the key to success and will be talked about in a later email. If you want to be mentored and taught the system to long term success click on the blue box to the right to learn more.

Big A

Five Characteristics of Successful Traders

Successful Traders Traits

As a former money manager I associated with a lot of other money managers. Some of them were successful, some of them were not and none of them ever taught their systems. They all said I was crazy when I said I was going to teach my system. But knowing what I know about volume and liquidity on the daily charts I knew I would not be hurting myself. No trader worth their salt would ever share their system if it hurt their own fills and performance no matter how "nice" they seem. With that said I want to share with you five characteristics of successful traders. All the successful money manager I know had these traits.

Successful Traders 5 Skillsets

Successful traders don't "make things happen". If you try to force the market and enter too early because "you know it's going to go up" you will get hurt. The key is to be a follower, not a leader. Follow your system (if it's a proven system like mine) and don't make things happen outside of it. If you have a trigger finger and can't help clicking your mouse, then do it on a demo account. Just don't think when you get lucky a few times that it's ok to "make things happen'. That is the whole reason for using a system and milking the slight edge it gives you. Successful trades are prepared. It's very important that you have a trading plan and that you stick to it. I will show you how to plan each trade quickly and easily each night in only 10 minutes after you learn my system. Successful traders remain emotionally detached. Once you enter a trade, are you willing to forget about it until your pre-determined exit strategy is met? I admit that it's fun to watch your trading account soar in a matter of days, but watching it too closely can be dangerous. My after market trading plan eliminates 99% of emotion because all decisions are made while the market is closed and not moving. Successful traders expect to become rich. Can you picture yourself wealthy? Successful traders can. Don't limit yourself. Prosperity must be on the inside of you before it is on the outside. If not you will self sabotage your trading account when it starts to get too high because of a subconscious hang up that you don't deserve to be rich. I will teach you how to think and overcome any hidden physiological obstacles that are hindering you from success. That is part of my mentoring program. Successful traders all had a mentor. Warren Buffett looked up to and learned from Ben Graham. Jim Rogers learned from George Soros. My personal mentor is still in the business (and no he doesn't teach his system). Sure Warren Buffet modified his system from Ben Graham to make it his own. All good traders "make it their own" after learning all the system trade rules.

Successful Traders Have Rules

That is why my system has three sets of trading rules. One set for those who are conservative, another for moderate, and another for aggressive traders. This lets you take ownership of your trading. Taking ownership could be listed as number six. Why would you be any different in the respect to needing a mentor? It's a fact and if I have to "sell" you on this part I'm not sure you understand how life works. For example, on your current job did anyone teach you anything so you could do your job effectively? If you are the rare person who is on my email list and is already successful in trading I guarantee you will learn a few valuable techniques in my course that will make it all worthwhile.

To you becoming a successful trader,

Big A

If you want to be a successful trader learn the system to do it. Click the blue banner to the right of this article and see how you can achieve steady returns also.

Fundamental vs Technical Analysis in EFT Trading

EFT Trading -Fundamental vs Technical Analysis

First let me share what these two types of analysis are.

Fundamental Analysis

Fundamentals, or as I like to call them fuzzymentals, try to predict ETF future prices by supply, demand, interest rates, government policy, weather, underlying economic factors, etc. In part it does work if you are an economist and very, very good at it, but it will never generate the types of profits that technical analysis can. Technical analysis takes advantage of the fact that ETFs move in trends 30% of the time. It helps identify those trends and take advantage of moving prices. Ultimately we don't care what (if any) the fundamental reasons are for price movement, but that it is moving and we are capturing profit from it. Identifying trends is one of the most important things to learn. My system teaches you how to do this.

Technical Trading Analysis

My system uses only technical trading because I know, not just believe, that the price already reflects all the known fundamentals. For example when a hurricane is approaching the U.S. Gulf coast oil prices start to go up. Because of the new fundamental knowledge of the storm the price already started moving up at the time the knowledge became available, not when the storm actually hit. Most importantly even if somehow you magically knew all the fundamental information there was you would not know the market's reaction to that information. If you knew all the reasons why the market was going to crash in September and October 2008 you still would not know how far it was going to crash. With technical analysis my system caught a very large part of that drop in many ETFs. If your portfolio is stagnant or dropping it is time to rethink your whole approach to the markets or at least diversify a portion to self trading. One of the questions I get a lot is how much money does the 5-10 minute per night trading system make? The answer depends on how much money you trade. The easier way is to look at percentages.

Total non compounded monthly result are: 5.7%.

All this while risking only 1% on every first trade and having very low draw downs.These results are with using margin, but that does not increase risk because we still risk only 1% regardless of using margin or not. Day trading my system can make you over 12% per month with the same low risk. You could make more once you become experienced study the larger list of ETFs. If you use an IRA account I will give you a list on inverse ETFs which allow you to sell the market, but because you can't use margin in a IRA or 401k account you will need to cut the above returns in half. Plus cut the draw downs (losses) in half. Where else can you safely average 6% per month or 3% per month in a IRA account trading only 10 minutes per night? Anyone who complains about this does not understand real trading and investing or has gotten sucked into the hype on the internet. I'll expo all that hype in a later article. If you found this helpful click on the blue banner to your right to discover more from the Big A at ETF Trend Trading