The most common way for people to trade is in the stock market. People like to trade stocks and they are very comfortable trading listed stocks.
Unfortunately, the returns of the stock market are absolutely horrible. If you buy and hold, you’re basically putting your money into a pile and setting it on fire. If you’re in a 401k, the odds are even more against you.
So when people find out they can trade trends and make money, they really get excited. They hear about the great returns, and want in.
But trend trading uses futures contracts – and many people just aren’t all that familiar with futures and how to trade them.
Well, I had so many people ask about trading stocks I decided to do something about it.
My goal was to create a simple – and very safe – way to beat the stock market. It had to be something that would only take a few minutes a month. And it needed to be something people can trade in their stock account.
We had many people ask about retirement accounts over at Trend Following 101– I get questions every day about trend trading in a retirement account. The system had to work in a retirement account.
So I rolled up my sleeves, pulled out my knowledge of trend trading – and found it’s entirely possible to beat the stock market using trend trading in a stock account.
It turns out you only need to trade 1 time a month. You can beat the stock market using popular and easy to trade ETFs and trading just once a month. Not only that, this system has far less risk than buy and hold. Here is a chart of an ETF Trend Trading system against a buy and hold strategy in the S&P 500 since June 2007.
This system doesn’t have the jaw-dropping returns of a real trend trading system of 30%+ per year. The back tested returns for the flagship Trend Following 101 system are well over 40% per year – that’s Warren Buffet territory.
But there are benefits to this ultra-easy system:
- • You can trade this with a stock account
- • It only trades 1 time a month
- • Many people can do this system in their retirement account
- • The returns blow away the stock market
On the first trading day of every month, this strategy makes just a handful of trades. You can do these trades in a stock account.
After that, you don’t have to do anything until the next month rolls around. It’s less work than paying your bills, and far more pleasurable. When times are good, it performs about the same as the stock market. But when times are bad, it cuts losses dramatically.
So you get to go to the party, but skip the hangover. It’s the best of both worlds.
This strategy is very low volatility. You’ll get some dramatic drops, but they will be far, far lower than the crashes associated with the stock market.
For example, just last year, the stock market went through a dramatic decline of nearly 20%. From April to September of last year, the stock market dropped like a stone. This system did far better. It lost just 10% over the same time period.
Since July of 2007, this system returned a healthy 28%. As a reference – the S&P 500 lost nearly 10% since 2007. That’s over four years. The EZ ETF system has outperformed a buy and hold strategy by nearly 40% during the worst recession of our life time.
It’s easy to remember the bad times of early 2009. During those times, nobody knew what was going to happen. There was panic we would have a full fledged financial meltdown. The stock market was losing money every day – and the losses were gigantic.
On March 6th, 2009, the S&P 500 index hit a low 666.79. That’s a huge drop from the high of 1561 in late 2007. It’s a 58%+ drop.
For the EZ Trade System, the maximum loss was only 24% from high to low. This system didn’t get crushed during the very worst markets in the last 70 years.
It’s a simple system, but it does protect your money.
This is the power of trend trading. Get into markets which are moving in one direction, and make money in those markets. Don’t even bother with markets which aren’t in strong trends.
The EZ ETF system scans many markets looking for the strongest markets, and then hops on for a ride. It chooses the 4 strongest ETFs every month, and you just buy those ETFs, one time per month.
It really couldn’t be simpler.
This system protects your money in down markets, and takes full advantage of up markets. It’s a quick and easy way to help people build wealth safely in their retirement accounts. It’s a good way to get acquainted to the techniques of trend trading.
So instead of losing money in your IRA, you can build real wealth.
Trend Trading is a wonderful set of tools. I just applied them to stock market accounts. If you want more information on how this system works, go over the www.trendfollowing101.com/signals, and take a look at our EZ ETF system.
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Michael Sankowski spends a lot of his time applying quantitative mathematics to financial markets. When he's not playing the guitar, he has been a professional trader for 20 years. He's traded billions of dollars on four continents and is a well-known financial writer. He's a CFA, CAIA, and has created patented Futures products. He's here to help you make more money (and especially not lose your money).
What are the charges that can be levied on the investor by a stock broker?
this is good way for safely beat the stck marketin