ETFs | Let there be
no illusions
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 my previous article on fundamental analysis vs.
technical analysis. If you did not get it please email me.
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?
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.
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 my homepage. 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.
Remember I have a 90 day money back
guarantee according to the terms on my homepage.
Click here for the newsletter on how to safely average 6% per month trading
Exchange-Traded Funds:
