I thought I would post this article to the main website as I believe this information is of value to most investors. FullyInformed Members can access additional details, but the main point of the article should be of interest to all. As some members will recall, I commenced a market direction portfolio for the FullyInformed Members site with the purpose of using the Ultra Type funds to grow a portfolio through primarily investing after hours. While some trades have to be placed during trading hours, many investors could do so by studying the charts at the close of the prior day and then place their orders during lunch hours or mid-morning or afternoon break time.
The purpose of the market direction portfolio was to determine if the average investor could earn substantial returns of at least 12% a year, every year with minimal work, using the Ultra ETFS and setting up most of the trades in the evening after the markets have closed. The market direction portfolio is being managed by Doug Harris, and he has done a terrific job as he is already up 14%.
Market Direction Portfolio Already Up 14%
With just 5 months into the year, Doug has realized gains of 6.9% and unrealized gains that total 14%. The strategy he has been using is using stop losses which he has explained in numerous articles which members can access here. The stop-loss is the key to earning very good returns while controlling changes in the market direction, either up or down depending on the Ultra ETF being held at the time.
Market Direction Down
Although this year we have not yet experienced any significant pull back, the Ultra Short ETF has been used with good results. If the remaining months can produce the same types of returns the market direction portfolio may earn more than 25% which would be significant, especially if this type of return could be realized consistently each year. For one thing there is only one trade on going at any one time making it easy to follow the trade without much actual trading. The trades can be scaled into and through the use of the stop-loss the market movement affecting the Ultra ETFs can be controlled to a large extent locking in profits when necessary and at other times allowing for the investment to follow the market direction up or down.
Without a significant correction to date, the profits for a downturn can only be predicted but in a market pullback such as was seen in 2008 to 2009, the market direction portfolio returns could be significant.
Market Direction Portfolio Update Summary
For investors interested in following the market direction portfolio, the trades for 2013 are posted to the members section and because most trades are posted the night before, there is time for review. I believe this market direction portfolio strategy may prove valuable to investors.
Internal Market Direction Links
Market Direction Portfolio Ongoing Trades (Members only)
Market Direction Portfolio Articles and Trade Alerts
Profiting From Understanding Market Direction (Articles Index)