Difficulty Investing in Volatile Markets?
Too Much Slippage?
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Today’s Tough, Volatile Markets
Much has changed since 2000. Deficits and bubbles have eroded confidence, computer-
fast, choppy markets. Diversity no longer protects a portfolio, rallies are short with
sharp pullbacks, and every few years a bubble bursts. Investors have reacted by
trading in shorter timeframes and moving to ETF's from mutual funds.
The Only Safe Haven Is Selling. Or is it?
But selling to avoid large losses brings another set of problems, namely churning and
slippage, leading to loss of focus and emotion based trading.
How You Can Tame Volatility
The ETF-Discipline is a comprehensive strategy that you apply to assess market
direction, select top-performing ETF's, and determine when to buy, sell, or protect
them with options. Your weekly guide to this Six-step process is the ETF-Letter.
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Paul Accampo, Publisher
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Options Protect Funds You Want to Keep
Too much buying and selling takes away focus on goals, loses dividends, multiplies trading costs, and leads to
emotional trend-following. Often maligned as risky, options can neutralize loss in a falling market and deliver four
crucial benefits: capital preservation, less slippage, time to plan long term, and profit in falling markets.
Sign up for a 1-month free trial to the ETF Letter, and you will also receive my 40-page e-book, Protective
Puts as a Stop-Loss Replacement, which presents an option primer, a specific trading strategy and an
introduction to the free, state-of-the-art option trading platform offered by thinkorswim, a division of TD
Ameritrade.
The current market recovery is no mystery. We identified the sub-prime problem back in July 2007, sold as it
plunged and bought into the strong rallies since. For a free copy of the issue that called the housing downturn in
July 2007, Click Here.
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