HOW DIFFICULT IS IT TO USE?

Quite frankly, the system* is very easy to use. You do not need any knowledge of technical analysis. If you do have experience with technical analysis you will probably end up kicking yourself for not discovering this yourself. Do not be too hard on yourself, this particular chart is not available on most free charting systems (eg:yahoo, Bloomberg, CBSMarketwatch etc.), but it is available and it is free.

So, how simple is this system* to use? Take a look at the chart. When the green line passes above the purple line (yellow arrow) we enter the market. When the green line passes below the purple line (red arrow) we exit the market. Simple enough? I will show you where to find this indicator and how to set it up. It should take no longer than five minutes. After that all you have to do is look at it once in a while. I look at it daily for about 15 seconds just to make sure I am on the right side of the market.

I have special rules set up as we near an entry into the market or exit from the market in an effort to create a "soft landing" when we leave and to make sure we do not get whipsawed as we enter the market, although sometimes whipsawing is unavoidable, as previously explained.

Another interesting facet of my system* or any system for that matter, is that when they signal a buy you know that you have a very good chance of making money on that trade. I mention this because between the years 2000-2002 the stock market tanked and many people lost a lot of money and many of them vowed never to invest in the stock market again. What happened in 2003? The stock market soared and many people sat on the side lines and watched this occur because of the bad taste they had for stocks. Finally, many people, after the market had its run up decided to buy into the market again, but of course they were on the tail end of the rally and either made no money or very little money. It is that old "sell low, buy high" mentality that most people fall into and that is why many people never make any money in the stock market. (More to come on that thought) A regimented trading system removes all that, especially one that has downside protection built into it. I do not know about you, but when I go into a trade I have no qualms whatsover. Why? Because in a best case scenario I will make money and get out before I give it all back. Additionally, I have downside protection meaning even if the market should go in the opposite direction I only stand to lose a small percent of my investment. Can you say the same about your investments?

The system* seems to work best on ETF or more commonly known as Exchange Traded Funds. These are funds that tend to replicate the performance of a particular index. I have always preferred the Nasdaq due to its volatility meaning there is a lot of movement up and down plus the index rarely stagnates. In theory you could use my system* on any ETF, but I have not backtested the system* on any index other than the Nasdaq, but it is very easy to do with the charting web site that I use.

WHY DO I PLAY THE NASDAQ?

The reason I prefer the Indexes over individual stocks is very simple. If you have been in the market long enough you learn from experience and from reading that it is not too difficult to manipulate the prices of individual stocks; plus the price of individual stocks is dependant on other factors.

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*Disclaimer and legal stuff I have only been trading with this system since 2005. The returns shown above were done through back-testing which as the term implies is going back to the year 2000 and seeing how my system* would have performed. The thing to understand here is that many experts consider back-testing to be biased because of the "would I have actually made that particular trade at that particular time mentality". The reason back-testing works in this system* is because there is no emotion involved in the buy or sell decision. The decision is strictly mechanical; you do what the green and purple lines tell you to do.

All contents of the system is presented for information purposes only. This system* is not to be interpreted as investment advice, an endorsement of any security, or personal investment advice. I am not a registered investment advisor, broker, or dealer and this system* is intended as a service for information only. You should also be aware that past performance is no guarantee of future performance. You buy at your own risk.

Should you purchase this system please keep in mind that it is copyrighted and you purchase for your own particular informational purposes. You have no rights implied or otherwise to share or disseminate this information with others.