Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The keys to profitably trading exchange traded funds


Published on

In this video you will learn the keys to successful ETF trading and investing, why most people fail, and a surefire method for you not being one of them.

  • Be the first to comment

  • Be the first to like this

The keys to profitably trading exchange traded funds

  1. 1. Exchange Traded Funds <ul><li>The Keys To Successful Trading/Investing </li></ul>
  2. 2. Five primary reasons people lose money trading ETFs <ul><li>1.) Utilizing a flawed “buy and hold” approach. The buy and hold theory is flawed for two primary reasons: </li></ul><ul><ul><li>First, it assumes that you can’t properly time the market (entry & exit points) </li></ul></ul><ul><ul><li>Second, it assumes that the market will consistently grow on an annual basis </li></ul></ul>
  3. 3. Five primary reasons people lose money trading ETFs <ul><li>2.) Trading with an incomplete method (or worse yet, no method at all). </li></ul><ul><ul><li>Investing and trading is all about execution around a specific game plan. </li></ul></ul><ul><ul><li>If you don’t know what your edge is or what your limits are, then you’re not actually trading at all, you’re simply gambling. </li></ul></ul>
  4. 4. Five primary reasons people lose money trading ETFs <ul><li>3.) Going after profits first and thinking about risk second (if at all) </li></ul><ul><ul><li>Losing traders & investors let their “Greed” get the best of them. They get so enamored with the potential windfall that they start taking unnecessary risks </li></ul></ul>
  5. 5. Five primary reasons people lose money trading ETFs <ul><li>4.) Trying to capture entire market moves. </li></ul><ul><ul><li>The only way that a trader or investor is able to capture an entire market move is by sheer luck. </li></ul></ul><ul><ul><li>There is just no clear definable strategy or indicator to pinpoint these exact positions on a chart. </li></ul></ul>
  6. 6. Five primary reasons people lose money trading ETFs. <ul><li>5.) Trying to trade in every market regardless of condition. </li></ul><ul><ul><li>Not every market is ripe for trading. </li></ul></ul><ul><ul><li>Non-deliberately trading markets greatly reduce the traders’ chances for success because market movement is indistinguishable. </li></ul></ul><ul><ul><li>The best trading method in the world will yield little to no results in a market like this because the odds of success are stacked against you. </li></ul></ul><ul><ul><li>It’s not your trading style…it’s simply the market. </li></ul></ul>
  7. 7. Investing / Trading the “Right Way” <ul><li>1.) Action oriented, engaged approach. </li></ul><ul><ul><li>An active investor does have the ability to gauge when they should enter and exit a market. </li></ul></ul><ul><ul><li>It’s simply a matter understanding how the market is currently moving and knowing the right time to get into and out of a trade. </li></ul></ul><ul><ul><li>This can be learned through proper education, disciplined trading and practice. </li></ul></ul>
  8. 8. Investing / Trading the “Right Way” <ul><li>Buy & Hold Strategy = 7.8% loss </li></ul><ul><li>Money tied up for 6 months with no exit strategy. </li></ul>
  9. 9. Investing / Trading the “Right Way” <ul><li>Action Oriented Strategy = 10.7% profit </li></ul><ul><li>Money tied up for 2 months, clear and defined exit point </li></ul><ul><li>avoided the major market reversal. </li></ul>
  10. 10. Investing / Trading the “Right Way” <ul><li>2.) Utilizing a complete Method </li></ul><ul><ul><li>A professional trader knows the next move that he/she will make based on market activity. </li></ul></ul><ul><ul><li>Trading ETFs, or any market for that matter, is all about setting yourself up to win, getting the odds in your favor before investing, and managing risk tolerance while in the trade. </li></ul></ul>
  11. 11. Investing / Trading the “Right Way” <ul><ul><li>A sound trading strategy will employ at a minimum four primary points:     </li></ul></ul><ul><ul><ul><li>a. Specific Setup Conditions  </li></ul></ul></ul><ul><ul><ul><li>b. Entry Rules </li></ul></ul></ul><ul><ul><ul><li>c. Initial Stop Rules </li></ul></ul></ul><ul><ul><ul><li>d. Exit Strategy Rules </li></ul></ul></ul>
  12. 12. Investing / Trading the “Right Way” <ul><li>If your trading strategy does not employ these four components at a minimum you need to reevaluate your strategy because your risk exposure is too high. </li></ul>
  13. 13. Investing / Trading the “Right Way” <ul><li>3.) Risk management first, trading second. Professional traders know that to be a successful trader, risk control has to be the first component of your trading strategy. </li></ul>
  14. 14. Investing / Trading the “Right Way” <ul><ul><li>When you trade with a risk management strategy, you shield your portfolio from undue, potentially huge losses. </li></ul></ul><ul><ul><li>Moreover, there is an understanding of how much loss may be incurred before the trade is ever placed. </li></ul></ul><ul><ul><li>This understanding of the potential loss, leads to the acceptance of the risk and ultimately removes all emotion from the decision making process. </li></ul></ul><ul><ul><li>If you can remove emotion entirely from the decision making process, you chances for success are greatly improved as are potential for profits. </li></ul></ul>
  15. 15. Investing / Trading the “Right Way” <ul><li>4.) Trading the “Sweet-spots”. </li></ul><ul><ul><li>Rather than focus on major market movements or events caused by news events, you should be trading the sweet-spots of a move. </li></ul></ul><ul><ul><li>These are the middle one-third of a market move. </li></ul></ul><ul><ul><ul><li>When you go after the middle one-third of a market move, the probability of being able to know the direction of the prevailing trend is substantially higher…This gives you a trading edge. </li></ul></ul></ul>
  16. 16. Investing / Trading the “Right Way” <ul><li>5.) Trade deliberate markets. </li></ul><ul><ul><li>Deliberate markets display a clear identifiable pattern in their movements. </li></ul></ul><ul><ul><li>You can confidently make a trade within these markets because you know that they odds are in your favor that they will continue to move accordingly. </li></ul></ul><ul><ul><li>These are the markets where your trade and investment dollars will do the most work for you. </li></ul></ul><ul><ul><li>The key, obviously, is to know when to get out and/or the movement pattern has finished. </li></ul></ul>
  17. 17. Investing / Trading the “Right Way” <ul><li>You can easily see the difference between a deliberate and non-deliberately trading market below: </li></ul>
  18. 18. Investing / Trading the “Right Way” <ul><li>Deliberately Trading Market Market moves in a consistant pattern. Candles and shadows are relatively short and there are little to no gaps in one day’s close and the next day’s open. </li></ul>
  19. 19. Investing / Trading the “Right Way” <ul><li>This is a trading method designed to be safe, easy, and effective. </li></ul><ul><li>Includes custom trade alert software that literally spoon feeds trade opportunities based on the trading strategies mentioned above. </li></ul>
  20. 20. Investing / Trading the “Right Way” <ul><li>If you would like to get more information on the Portfolio Prophet trading course, simply click on the link below: </li></ul>Go Here