Commencing October 28, 2011 My Stock Portfolio will no longer solely trade leveraged Latin America Mutual Funds or ETFs in its portfolio. Although financially rewarding, the markets have been too volatile and have created investor angst. Instead My Stock Portfolio will begin an investment philosophy of buying global undervalued stocks and short selling overvalued stocks. This change will create more stock, option and ETF trades as well as shorter holding periods as a direct result. Standard investment disclaimer applies.
From September 22, 2009 until October 28, 2011, we used the following investment strategy: My Stock Portfolio follows the trend of the of the Nasdaq 100 Index also known as the NDX. As such, subscribers with low risk tolerance may follow its trade signals by buying and selling the QQQQs (unleveraged Powershares Trust ETF) in their current brokerage account. Aggressive Investors with high risk tolerance may follow its end-of-the day buy and sell signals using the double leveraged QID/QLD ETF from Proshares. Subscribers using either of these two ETFs must remember to execute and confirm their market-on-the-close (MOC) orders by 3:39:59 p.m. otherwise they will not receive the end-of-the-day settlement price on the day of the trade signal. Also, by doing this, investment returns will differ from the published trade results on Collective 2.
Although "My Stock Portfolio" uses the NDX to initiate buy and sell signals, our research has discovered that the highest returns for our long-term index investment system have been achieved by buying and selling the Ultra Latin America ADR at Profunds (mutual fund stock symbols: UBPIX and UFPIX). That's why we trade them exclusively now. The detailed list of the 35 stocks in this ADR fund can be found by going to www.profunds.com/funds/ultralatin_america.html. Subscribers are reminded that orders placed at Profunds for UBPIX and UFPIX must be executed and confirmed by 3:29:59 p.m. during the trading day to get the end-of-the-day settlement price.
Investors without the $15,000.00 initial investment required to open an account at Profunds may instead trade our signals using the unleveraged I-Shares Latin America 40 share ETF with the stock symbol ILF at their current broker. Investment returns will be lower using this process, but so will the account's drawdowns due to the decreased leverage.
Suggested readings: Trend Following: How Great Traders Make Millions in Up or Down Markets by Michael Covel and The Complete Turtle Trader: The Legend, the Lessons, the Results by Michael Covel.
We have intentionally kept the subscription rate low so investors would be able to subscribe to "My Stock Portfolio" along with another C2 system of their choice - just as Matthew Klein preaches ad infinitum on this website (see Portfolio Builder details). And, yes, we trade this end-of-the-day trend following system with our own money at Profunds using the closed trade stock symbols. This is the recommended process. Only speculative funds should be commited to this investment system. Standard disclaimer applies.
Most investors don't plan to fail, rather they fail to plan. Each investor should evaluate their risk tolerance and incorporate their findings in the core of their investment plan. The investment plan of "My Stock Portfolio" is to provide positive investment returns (i.e., build wealth) regardless of market conditions with reduced risk due to limited market exposure.