"It is important to take the time to get set up correctly. Then you can consult the system and save yourself a whole lot of time and confusion."
Positioning and Choosing Best Mutual Funds for Investing Trading Market Timing Strategy
FIVE ESSENTIAL STEPS
- Know yourself, risk temperament, and your investable funds.
- Choose your mutual fund family or custodian.
- Choose a fund.
- Subscribe to this Website.
- Stay the course.
Sounds big, but not really. Remember, the goal of this website is to have you investing, trading, and market timing your mutual fund investments like a professional in only minutes a day. We want to streamline the approach and simplify the process. The objective is to get superior performance according to our belief that “the best long term results come from daily protection of capital”. In these five steps we intend to help you position yourself to succeed.
The broad concept in positioning, as outlined in Steps 2 and 3, is the tradability of your fund(s). Tradable means the ease and cost of exchanging from one mutual fund to another. The Investing Trading Market Timing Strategy is designed to find mutual funds in up trends, to allow them to advance in price until meaningful reversal signals are triggered, and to capture profits when this occurs. A corollary to this is to avoid funds in downtrends. The strategy accepts the fact that share prices are often locked in trading, rotational conditions that can last a long time before the next trend develops, up or down. Because there is no reliable indicator of the next trend, the strategy actively seeks to be positioned "in", if the direction is up; "out", if the direction is down. It willingly takes small profits and losses in this effort. Therefore, it only makes sense that one must own a fund that is tradable.
For those already owning a mutual fund(s), Steps 1 through 3 are already accomplished. However, it is useful to examine each step from the perspective of trading and market timing your mutual fund investments for protection and profit.
Step 1. Know yourself and the money you can invest. You must carefully decide on the amount you can invest. There is always risk in investing; and after putting aside what you need for living and emergency, you are then ready to put some of your capital to work.
The amount of money you feel free to invest will also influence the mutual fund company you select.
In addition, you must consider your temperament and investment goals. An Investment Risk/Return Profile survey is available to subscribers through the Members Home page. This site offers only information and does not offer individual investment advice. You must first work out your investment plan and then put our site to work.
Step 2. Choose your mutual fund company or other custodian of your funds. As a person interested in investing trading, and market timing mutual funds to get more protection and profit, there are some critical considerations in your choice of fund family or other custodian of your funds.
For some of you the choice is made. Your 40lk provider has been chosen for you, or you have an existing account at a mutual fund company.
Others of you are first-time investors. You either already have or you will put your money somewhere.
The fact that there are hundreds of mutual fund companies offering over 8,000 mutual funds makes the task seem almost impossible. To cut through this maze, realize this: first, we have learned through analysis and experience that you only need to apply intelligent rules to well known funds to get great performance. You do not need to scour the mutual fund universe to find the one fund that can bring you investment success; second, by following the criteria for an ideal mutual fund company given below, you will narrow the field considerably.
CRITERIA FOR IDEAL MUTUAL FUND FAMILY OR CUSTODIAN
|
| 1. No front load or back load commissions. |
| 2. No redemption fees or trading restrictions. |
| 3. No transaction costs to exchange from one fund to another. |
| 4. Funds representative of the categories covered in strategy tables. |
Why is the choice of the mutual fund family or custodian important? Because their rules dictate the tradability of the funds you can use implementing this strategy.
Discussion for those with an established mutual fund account who wish to engage this more proactive investment style:
- Know the fee structure, trading costs and trading restrictions of your fund choices.
- Know how to make an exchange from one fund to another.
- Keep in mind the characteristics of an ideal fund family or custodian listed above.
- If you have an account with an on-line brokerage firm, do the math on transaction costs relative to the size of your account. If high, you can consider moving your account. You need only one fund family.
- If you have paid a front load to enter a fund and it is in a family meeting criteria #2-#4 above, you can stay put.
- If you are in a variable annuity, variable life contract, or 401k plan, your custodian is a given. Check with your plan’s customer service regarding restrictions on number of exchanges, if any.
- Representative load funds are included in the Mutual Fund Tables for those who own them directly and because they are found in many variable annuity, variable life and retirement plans.
- If you are in a fund with a back load obligation, you will have to consider the cost of redemption before making a change.
- Transfering from one fund company to another is easy and efficient. Go to the fund company to which you plan to move your account, fill out their transfer form, and they will transfer your existing account for you.
Discussion for those who need to choose a mutual fund company:
- Keep in mind the characteristics of an ideal custodian for trading mutual funds as listed above.
- Select a no-load company. Make sure the funds you plan to use do not have trading restrictions.
- For a variety of index and sector funds, choose Rydex Funds and Profunds. They have structured themselves for proactive mutual fund investing and trading. We devote an entire table to Rydex Funds. Profunds selections, that are not duplicated in Rydex, are found throughout the tables.
- Read the prospectus before investing in any mutual fund.
Step 3. Choose a Fund. You have now put your money with a particular mutual fund company, and it is time to choose a fund(s)
Step 3 and Step 4 should be considered together because you will need a subscription to receive our daily tables. As you read along, it may be useful to see Example Mutual Fund Tables and Dynamic Asset Allocation Models by browsing the left navigation bar.
For information on making initial choices, click on Two Minute Managerand scroll to "Find a New Fund".
To view the full list of mtual funds covered daily in the Dynamic Asset Allocation Models, visitors and subscribers can register by clicking on "Free Mutual Fund List" on the right sidebar.
As an added service, subscribers can submit fund names for inclusion in this list. A certain number of those qualifying will be included.
Step 4. Subscribe to Mutual Fund Investing Trading and Market Timing at this website. It offers a new way of looking at mutual fund investing with a new vocabulary and a new system that replaces "buy and hold" theory. Every page shows you what we are doing today to stay positioned for uptrends. Subscribe today and participate in a modern, pro-active way to own mutual funds.
Step 5. Stay the course. Pay a daily visit. Become a Two-Minute Manager.
It is in “the doing” of an act that one “becomes”. To become a confident mutual fund investor, one must do some mutual fund investing, trading and timing. It is our hope that by learning from what we do for our clients, you can have the information to make the moves professionals make and in so doing become professional in your mutual fund investing.
Subscribe Today
Back to Top
|