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Triple Leveraged Arbitrage
Posted on May 28th, 2009 15 comments
This is a long term play you’ve NEVER heard of. Its not quite arbitrage, but it does have some similarities. Its similar to an arbitrage strategy in that you have a long position, and a short position on the same underlying. In other ways its like selling call options dated fairly far out, in that the odds are highly on your side, and it should slowly but relatively safely make money over longer time periods. Yet the reality is this play is like nothing you’ve ever seen. I call this ETF strategy: Triple Leveraged Arbitrage.Market Commentary Arbitrage, BGU, BGZ, DPK, DZK, EDC, EDZ, ERX, ERY, ETF Investing, ETF trading strategy, FAS, FAZ, investing strategy, long term investing, sector rotation, sector trading strategy, shorting, Shorting Ideas, Shorting Stock, stock market strategies, stock option strategy, stock trading strategy, TMF, TMV, TNA, TNZ, triple leveraged ETF, TYD, TYH, TYO, TYP -
Pyramid those profits!
Posted on March 23rd, 2009 No commentsWe’ve all heard the age old adage, cut your losses short, and let your profits ride. Yet the vast majority of traders don’t use this concept to its fullest. The proper application of this single, pivotal piece of advice, is usually the difference between showing a profit at the end of the month, and showing a loss. This method is known as “pyramiding your profits”.
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ETF Basics
Posted on March 23rd, 2009 46 commentsFor many years, investors have attempted to diversify their overall portfolios by trying to pick stocks across a diverse set of asset classes. Which is all well and good, but the problem it generally runs into is you should also be diversified within any given asset class, lest something adverse happen to the company you happened to bet on. Yet as soon as your diversifying both within, and between asset classes, now your running a portfolio of potentially 40+ equities, and even the active investor rarely has time to do due diligence on the hundreds of companies required to find 40 excellent investments. Read the rest of this entry »
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Shorting Stock - The path to riches in a troubled economy
Posted on February 18th, 2009 6 commentsEvery day, the stock market seems to continue its precipitous drop towards worthlessness, crushing hopes, dreams, and investors in a flurry of dizzying price movements. Yet there is an answer; a light in the darkness, used by the masters of investment to generate excess returns even - no, scratch that, - especially in falling markets like this one.
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