Made 86 Times More Than a Typical Mutual Fund Made

 http://budurl.com/dyla 

We use trend-following approach first started by Sir John Templeton.  By using thr Trend Following Approach, one of his fund managers got 57 times the profit obtained   by using BUY & Hold strategies. We also recommend the Trend Following Strategy in our book with a little twist. We get better returns as we focus only on Russell 2000 and not 5 separate  ETFs. Also, we use leverage prudently.

Over  the last 5 years since Nov 2008, back checking this theory, we get 86 times the returns using Buy and Hold  strategy of buying only Standard and Poor 500 stocks and holding them  for  5 years. This is explained at considerable length in the book. We do not do any day trading. In fact,  we do not trade more than 15 times a year. People who day trade, are doing nothing more than gambling in a casino. Sometimes the trader wins but most of the time he loses.

We use this trend-following approach on  Russell 2000  ETF symbol RUT.  We use RUT only for getting the BUY & SELL signals. The actual trading is done on TNA (Triple Leveraged  Russell 2000) and its inverse  TZA (Triple Leveraged  Inverse Russell 2000).  The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. Its top 5 holdings  by weight are Financials, Consumer Discretionary, Producer Durables, Technology and Health care.

When RUT generates a BUY signal, we buy TNA thus going long. When RUT generates a Sell signal, we sell TNA and at the same time by going short by buying the inverse ETF TZA.

The best part of the approach is that we are not subjective and do not prejudge the direction of the market.

 This strategy is so elegant that it lets us make money whether the market is going up or going down. TNA is for the Up market, and TZA  is for the Down market. People who buy CALL or PUT options eventually lose money because all options expire with time. The essence of this approach is that we make even more money in unfavourable times as the market goes down faster than in up markets. Most mutual funds  just buy and hold. In down markets, they lose all their gains like what happened in 2008 or 2000-2001. 

Average return on a mutual fund is 10%. Average returns are meaningless, as whatever you gained in an Up market, you can lose when the market goes down. It has been explained in the book.

We do not recommend individual stocks as most of them can be manipulated. Look at APPLE. It went from 700 to 500 even though the market was going up. Insiders manipulate even DJIA so that they can suck in innocent buyers. It consists of only 30 stocks and they have to manipulate only 5 or 6 of these to change the direction of the market. 

This is why we use Russell 2000 as it is very difficult to manipulate 2000 stocks. SPX 500 index is also not very difficult to manipulate as the top 50 stocks in SPX 500 control 50% of the SPX 500 universe capitalization.

From Nov 23, 2012  to Feb 21,2013 RUT went up by 15%, whereas TNA went up by 30%. With the use of margin of 75%, the gain is   equal to 40%. For a comparison, Dow Jones Industrial Average went up   by 8.9% and SPX went up by 9.5%. Thus, TNA went up 4 times   what SPX 500 went up. Similarly, when the market goes down, TZA goes up 3 times more than what an average stock goes down. This is NOT a Buy & Hold Strategy. By following their strategy, many of the mutual funds managers could not even get 10% return in 2009, 2010, 2011,or 2012. Ask these jokers what were they doing with your money? They lost 2 trillion dollars in your 401 K and other retirement plans in 2008.

We are not aware of any mutual fund which achieved these returns  in just 3 months.  We have achieved these kinds of results consistently over many years.

This is the kind  of book you give to your grand children so that they can be millionaires on their own before they are 30

The book can be purchased by clicking below

http://budurl.com/dyla    We recently had a rank of #2 on Amazon Kindle in Finance Category  & Customer Reviews gave us 5 Stars consistently.

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