- Give you specific examples of ETF Element Trades.
- Profile 2 Trades.
- Detail entries of 2 ETFs using the Elements system.
Here are two recent trade examples with great trading ETFs – The NASADAQ Biotech ETF (IBB) and The Agribusiness ETF (MOO). Notice that we have the entry signals flagged, not the exits. We will be looking at the exit signals a little further down in this letter. For now, let’s focus on the entries:
The Elements systems is simple, it uses an easy process to enter trades based on TREND CONFIRMATION. A confirmed trend increases the probability of being on the right side of the trade, it’s also gives you defined entry points based on the ETF price action (down to the penny).
- Trend Set-up (Bull or Bear Set-up)
- Trend Confirmation (must occur within a defined period)
- Buy (or Sell Short) Signal
- Elements can be used for ETF Trading or ETF Options, which I prefer
Now that you know part of my secret of entering a good trade, the next step is strategizing a solid exit plan.
An important part of trading, maybe even more important than the entry, is the exit strategy. Of course you need to enter before you even get the chance to exit, but when and how you exit really determines how much you will profit from the trade.
Not having an exit strategy is one of the most common mistakes of Traders. It’s easy to get caught up on when to enter that you forget that you have to exit to make money. Create initial start and stops in the beginning to protect a trade from an adverse move.
There may still be those few trades that end up in the negative, but you’ll have a majority of winning trades that you know will be larger than your loser, you are setting yourself up for success.
In the ETF Elements educational package I share with you a Multi-tier exit strategy that you can only find in this course. Having more than just one exit indicator will ensure that your profits are locked down, but also gives you the insight to leave the best positions open for maximum profits.
Below I introduce you to the Multi-tier exit strategy in a real-trade example. Don’t worry about taking notes though, all this information will be available in the ETF Elements package.
Our exit strategy for MOO and IBB were based on the simple formula detailed in Elements. The framework is based on taking profits at or near short-term trend peaks, while leaving portions on to benefit if the prevailing trend persists. If the trend reverses we employ further indicators and methodologies to ensure we lock down as much profit as possible (or minimize the loss).
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