How to use the ETF Global Investor
To derive the maximum benefit from your subscription, please read this entire document very, very carefully.
Timing the global markets and its various industry sectors has long been one of the greatest secrets to investment success.
All investments have their cycles, periods when prices rise and periods when they fall. The idea is to buy before prices rise and sell before prices fall.
Opportunities abound, only if you buy and sell at the right time. This is where we come in… the ETF Global Investor specializes in finding the best ETF’s around the world. It will tell you exactly what to buy, when to buy and when to sell.
You can use ETF Global Investor for investing in both domestic & international markets and various industry sectors. It will show you the best ETFs where you should place your investment dollars under prevailing market conditions.
Since ETF’s trade just like stocks, you can make these trades in any brokerage account, including retirement accounts held with a broker. An online discount broker will work best because of their low commission rates.
The ETF Global Investor is clear, concise and easy to use. Yet it generates enormous profits when followed correctly and with proper discipline.
The ETF Global Investor will be e-mailed to you every Monday morning before 7:00 a.m. eastern time. It will also be available as a PDF file on our website.
HOW TO GET STARTED
With the ETF Global Investor, you can get started at any time. You don't have to worry about the market being too high or too low.
To start investing, you can either simply align your portfolio with the model portfolio or wait for a New Buy to show up. Diversification across all positions is important as there's no way to tell at the outset which of the positions will be profitable.
However, you can choose to start with "new trades" only or you can choose to start with less than full allocations across all positions, new and continuing, to achieve diversification and then "leg in" to the system as you gain confidence and experience with the plan. Trades can be closed at any time by being stopped out if the 15% trailing stop is triggered mid-week.
Every new trade is entered with a 15% money management stop to set a planned risk level for the trade. If the trade moves against us, we are stopped out. If the trade moves in our favor, the stop loss is moved up, and the effect of this is to first reduce risk, then move to breakeven, then move to profitability.
At some point the market will turn against us and the stop will be hit, ending the trade. Trades can also be closed as per the weekly newsletter recommendation if the ETF is no longer in the TOP 150.
Members uncomfortable with the volatility could adjust their positions to smaller sizes and so reduce risk and also potential reward. In my opinion, it's always best to start small and get used to the system, always paying attention to your "sleep at night" indicator.
But please remember ... patience and discipline are the two most important cornerstones of successful investing. Don't expect miracles or think you'll get rich overnight. Also, don't let the day to day market volatility and ups and downs bother you.
That is all part of investing in the stock market. Focus on the longer-term. Look at the bigger picture. Think where you want to be 3, 5 or 10 years from now.
Jumping around from one investment program to the next can be detrimental to your wealth building efforts. Once you have found a good system, like the ETF Global Investor, try it for at least for one full year before passing judgment on it. We sincerely hope to make your investing profitable and enjoyable.
FREQUENTLY ASKED QUESTIONS
Q. When is the newsletter published?
A. The ETF Global Investor is published every Monday morning and distributed to subscribers via e-mail and the password protected area on our website www.ETFglobalinvestor.com before 7:00 a.m. eastern time.
Q. I just signed up. Am I too late for the signal? What do I do?
A. You have two options. Either wait for a new Buy signal for an ETF to initiate your trading or jump in right away in the current trade. There is a third option which is nice compromise between the two. Use only half (5% per position) of your investment capital to invest in the present ongoing trade. Invest fully only when a new ETF is purchased in the model portfolio.
Q. Can you recommend any Brokerage firm for trading these ETFs?
A. You can use any discount broker of your choice that suits your requirements. Some possibilities are listed below:
www.Fidelity.com
www.Scottrade.com
www.TDameritrade.com
Q. How do you select ETFs to invest in OR why are you buying or selling a certain ETF?
A. Every week, we screen all the almost 900 ETF’s trading on US exchanges and look for those that have potential for spectacular price increases. The ETF selection is done using a rigorous proprietary system based on cutting-edge computerized quantitative analysis. This system ranks the ETFs according to their short-term momentum and relative strength. We list the TOP 150 in every issue of the ETF Global Investor.
Q. A certain ETF is down 10%. Are you still recommending it?
A. Since this is a weekly trading system, we request you to please wait patiently for your weekly update to see whether we are still recommending it. However, if the ETF has dropped 15% or more from the purchase price or from its recent peak, then it has triggered the trailing stop loss and should be sold.
Q. As a new subscriber, should I buy the ETF in the model portfolio, or should I wait till there is a new buy?
A. Either strategy is fine. The aggressive option is to go ahead and buy all the ETFs in the model portfolio at their current price. This way you'll be fully invested instantly. Even though some of these ETFs may be up 50% since we bought them, it doesn't mean that they cannot go up another 50% or more from these levels. The more conservative option is to buy an ETF when it is freshly added to the portfolio. This way, it may take you a few weeks to get fully invested.
Q. How do I use the momentum ranking list?
A. If you don't wish to duplicate the model portfolio, you can simply buy a few ETFs from the top of the ranking list. Sell them when they drop out of the TOP 150 and then buy the top ranked ETF at that time.
Q. Is there a minimum amount to invest?
A. You can start with $10,000 or even less, but try to invest at least $1000 per ETF for any meaningful results.
Q. How many ETFs do you follow? Do you follow the Short and UltraShort ETFs as well?
A. We track all ETFs trading on US exchanges, almost 900 at last count. These include all inverse ETFs. The top ranked 150 ETFs are then published in every issue of the ETF Global Investor.
Q. Do you advocate that I use stop losses to minimize losses in a sharp market downturn?
A. Yes, we must also follow a rigid sell discipline to lock profits or to minimize losses. It is suggested that you maintain a 15% trailing stop on all positions and if necessary exit during the week instead of waiting for the weekly newsletter on Monday. By doing this and maintaining 10 ETFs, your portfolio risk will be reduced to just 1.5% per position.
Example : Let’s say you purchase 100 shares of an ETF at $40. Your initial stop will be 15% lower or at $34. As the ETF rises, your stop price will also rise with it. That is why it is called a trailing stop. If the ETF rises to say $45, your trailing stop will then be $38.25 (which is 15% below $45). Similarly, if the ETF rises to $50, your trailing stop will then become $42.50 (which is 15% below $50). When the ETF hits $60, your new trailing stop will be $51.
We suggest entering your 15% initial stop as soon as you purchase the ETF. Then continue raising the stop price as the ETF rises in price. Remember, the trailing stop can only go higher, not lower.
Another Possibility : Once the ETF is showing an open profit of 30% or more, you can chose to take profits on half (50 shares in the example above) and let the other half ride with a trailing stop in place.
You may also consider purchasing CALL OPTIONS on highly ranked ETFs that have options traded on them.
Q. Do you provide a strategy for a bear market, or a severe drop in the overall market?
A. During bear markets inverse ETFs can be employed which move up when the market goes down.
Q. Each weekly issue of ETF Global Investor arrives between Sunday night and pre-market open Monday morning. If a new buy or sell is recommended, when do you buy or sell? Are the returns based on opening price on the day of a signal?
A. For accounting purpose and for showing the gains or losses in the weekly newsletter, all buys and sells are assumed to have been made at the closing price of the first trading day, usually a Monday.
Q. Because of differences in performance I no longer have a 10% allocation for each ETF. Some are now more than 10%, and some are less. Should I be concerned about this inevitable phenomenon? What if anything should I do to try to maintain an equal 10% per ETF allocation in my portfolio?
A. This is normal and there’s nothing to be concerned about. A few percentage points here and there does not really matter. When we sell and buy a new ETF, at that time you can rebalance, so that the newly purchased ETF is at roughly 10% allocation.
Q. In your service, do you ever consider and recommend inverse ETFs which go up when the associated sector or index goes down?
A. We track all inverse ETF's in our service as shown in the ETF momentum and relative strength rankings.
Q. Do you send out intra-week sell signals or updates?
A. The ETF Global Investor uses a longer-term investment methodology using weekly data so that our subscribers do not have to indulge in unnecessary and wasteful trading. Since it’s a weekly investment system, there are no intra-week sell signals or updates.
Q. Why don't you have more explanations and analysis in the newsletter?
A. We believe that over-analyzing anything leads to paralysis and the investor fails to act on the opportunity at hand. Since all our recommendations are based on tested and proven computer models, more explanations are not relevant because they do not add to the bottom line. By giving you a 16-page newsletter full of words and graphs, we'll be wasting your precious time without making any difference in the investment performance.
Q. Why do you sometimes sell ETFs at a loss?
A. Nobody likes losses, but all ETF positions cannot be profitable. And there is nothing wrong with taking a small loss. All successful investors and traders take losses from time to time. If we perceive that a certain ETF is not behaving the way we expect it to, we'll not hesitate in selling and moving on to other more attractive ETF’s.
Q. I expect the market to have a correction. Should I sell my ETF’s?
A. Consult your crystal ball first. Since nobody knows for sure when a correction is imminent, don't sell your funds based on what you hear on TV or read in the newspaper. Over the long-term you will be amply rewarded by following the model portfolios, using a strict method of discipline and patience.
Q. Can I call you with questions?
A. We are not in a position to give individualized investment advice. The purpose of this service is to tell you when to buy and when to sell ETF’s. The subscription price does not include telephone consultation. You should consult a financial planner for your specific needs. However, if you have a question about the service itself, please email it to us at support@ETFglobalinvestor.com and we will answer it promptly.
Disclaimer: Neither the ETF Global Investor nor Wealthquest International Inc., or any of its owner, officer, employees or associates will be liable for damages, including losses, loss of profit or any consequential damages resulting from the use of or the inability to use this service. The ETF Global Investor is intended for experienced, sophisticated investors who are thoroughly familiar with all the risks, cost, mechanics, tax, and legal consequences of mutual funds and investing. Use or misuse of any information included in the ETF Global Investor specifically exempts anyone affiliated with the ETF Global Investor from any liability whatsoever. All subscribers or users of the ETF Global Investor agree to take full responsibility for their investment decisions and any losses. Investments are at your own risk. Information may contain factual, mathematical, or typographic errors and therefore should be verified. Profits are not guaranteed and losses are possible. If you are unwilling or unable to comply with or agree to any of the conditions of this disclaimer, you may cancel your subscription at any time.
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