Sound Investing
The ETF Discipline
Five Steps to a Safer, More Profitable Portfolio

When you are ready to take control of your money, you can get sound investing advice at www.ETFDiscipline.com. The Dot-com and housing bubbles have burst the myth that diversification, reallocation, and holding stocks for the long term were the strategies that would earn you superior returns. In 2008, nearly fifteen years of gains were los and clients are now leaving their advisers. For those over fifty years of age, there is no time to recover the losses they have withstood at more than 20% of your portfolio. If you are dissatisfied with your investment advisor and are looking for sound investing strategies that will help you deal with downtrends and volatility, then EFT Discipline should be your next stop.

The ETF Discipline is a five step process for sound investing. It is designed with a defined process for buying and selling exchange-traded funds and methods for managing a portfolio of five to fifteen funds. All that is required is the knowledge to do this and you can profit from market upswings and protect yourself from the inevitable reversals. Best of all, you won't need anyone else's advice. Just follow the objectives to anticipate market changes, follow leading funds, and limit risk. The objective of the ETF-Letter is to teach the ETF Discipline by example. The ideas it is compose of come from trading practices and they are well-defined steps that are consistently repeated to achieve a favorable risk-reward trade off.

Once you follow the steps of the EFT Discipline to five to fifteen stocks or funds you will be a portfolio manager that can make you own decisions without any advice from anyone on sound investing. You can learn the direction and momentum of the stocks, ETF's and broad market averages on display variations of the same chart pattern as that of the stock market. Analysis of this characteristic pattern tells the prevailing trend, its momentum, and potential reversal prices. ETF Discipline buys in uptrends, holds in bases, and sells at the beginning of down-trends. The second step of the sound investing strategy is to do more than follow the trends. They monitor the market-moving news and gauge market sentiment that occurs when news hits the trading desks.

The third step of the EFT Discipline sound investing strategy is market leadership. They find the leading categories and the leading funds at the beginning of every rally. Then, they look for the best tradeoff between performance and volatility since the hottest funds are very volatile and they trip stop orders too often. Step four is to plan all trades in advance. They review the 80+ funds that they continuously track weekly and update buy and sell prices on each. They decide in advance where to get in and where to get out to form their weekly trading plan.

The fifth step of the sound investing plan is to execute on time. When they have funds to buy, they execute orders at their buy prices and let the market come to them. Once an order has executed, they immediately create a stop order at their predetermined sell price. The five step process helps you create a mechanical process that pre-defines risk and reward ahead of execution and removes emotion from investing. To get all the facts about the sound investing plan, go to www.etfDiscipline.com!