Commentary & Insights

Increase Your Profits Up To 300% Using XXX Velocity ETFs (JNUG)

Posted at February 23, 2016 » By : » Categories : Commentary & Insights » 2 Comments

Investing and increasing the value of your assets is difficult … It’s very hard to predict the winners which makes it very risky. Even if you like picking stocks and you win most of the time, unforeseen circumstances can burn even the best stock pickers. Most Americans would prefer to keep their money safe, so instead of picking individual stocks, they invest in mutual funds to diversify their portfolio. In fact, according to the Investment Co Institute, over 44% of Americans own a mutual fund. With a Fund, you can own the entire industry—from 20 to over 1,000 different securities—so if one company goes down your portfolio remains safe. In addition, owning a Fund saves busy people countless hours of research on all these industries—You just pick a Fund, then a Fund Manager buys and sells to maximize profits.

A new type of Fund—Exchange Traded Funds (ETFs)—was introduced in 1993 and has revolutionized the world of investing …

ETFs are Better than Mutual Funds. You have more freedom and liquidity to exit position at the first sign of trouble—opposed to a mutual fund where you can’t make a transaction until the end of business day. Plus, most ETFs charge less fees than mutual funds, which equals more money in your pocket …

ETFs Break Down the Barriers between Wall Street Insiders and Investors. When you have the same access as hedge fund managers, it really levels the playing field between brokers and investors …

ETFs are a more efficient, cost saving way to manage your portfolio.  They are more efficient than taking individual risks, and you can choose a 1:1 or 3:1 velocity depending on how aggressive you want to manage risk. Then your ETF manager chooses the proper instruments to provide the volatility accordingly …

Bear ETFs give you tremendous flexibility to buy and make profits inversely when there’s the right signal, so you benefit when the underlying product declines in price …

Bull ETFs give you tremendous flexibility to buy and you can make profits directly as the underlying product increases in price. Investors make the most profits if they can predict the right time to sell.

Managing Your Risk:  ETFs vs. Futures Contracts

Most traders don’t understand that when they’re taking a futures trade, they are taking obligation and full-liability of the total value of the contract. When you trade a futures contract, you are subject to a margin requirement in order to initiate a trade—usually around 10 to 15% of the full-value of the contract. For example, silver might have an initial margin requirement of $12,000 per contract. Let’s say you want 5,000 ounces of silver…

Based on current prices at $15.40 for silver contract, 15.40 x 5,000 = $77,000 full value of 5,000 ounces at $15.40 each.

But here’s the danger with Futures:

The danger, particularly in overnight markets, the volatility can be extreme, and silver could fluctuate 50-75 cents in either direction during a trading session. If you’re not financed properly when silver moves, you will be subject to margin calls, which means you will have to come up with additional funds to meet the obligation of a futures contract up to the full value. And trust me, many investors who didn’t fully understand a futures contract have seen their retirement go up in smoke within a few seconds and owing hundreds of thousands they don’t have…

But there is good news, because I’ve discovered a way to eliminate the margin risk if I trade ETFs instead of Futures … and there’s a lot of comfort managing this risk when it’s not as “risky”. With ETFs—particularly the XXX Velocity ETFs related to gold and silver—the comfort comes because we apply the same strategy for the futures contract ($12,000 initial margin for silver), and instead we buy $12,000 worth of these ETFs at market price-per-share. When you buy ETFs per share instead of a futures contract, it automatically eliminates the margin risk, because there are no longer any margin obligations. To give you a good example of 3X velocity ETFs, let’s take a look at this week’s recommendation …

We’ve recently been trading an ETF instrument for the gold and silver markets that brought returns of over 300% within 30-days:

GOLD MINING SHARES: (JNUG)—a Triple-X Velocity Bull ETF—seeks daily investment results, before fees and expenses, of 300% of the performance of the Market Vectors Junior Gold Miners Index. The Fund seeks daily leveraged investment results and does not seek to achieve its stated investment objective over a period of time greater than one day. However, JNUG is different and much riskier than most exchange traded funds … which is why you need a manager to guide you through the minefield. My whole idea about trading is to manage the risk and maximize the profit potential of my dollar investment, and the ideal goal is to produce above average returns.

Take a look at the volatility we predicted back in November, 2015: As you can see here just a few weeks ago on January 19th, the low was $17.40 per share.  The high on Friday February 19, was $61.50—more than triple—from Jan 19 to Feb 19.

 

GoldFeb23.JPG

 

 

From January 19th to February 19th—less than 30 days—this ETF tripled in price over 300% return, as the price of gold went up $200 per ounce during the same period. And this was just last week!

No matter what trading instrument you compare it to, 300% is an incredible return when compounded annually, especially when you incorporate the risk-reward ratio accordingly. This is the kind of strategy we are using in instruments like JNUG—very volatile, XXX velocity instruments, used to build equity aggressively—and deliver exponential profits in a short period of time. These ETFs are securities … You buy dollars per share, not on margin for day or swing trading. These XXX velocity ETFs are aggressive enough that you don’t need to buy on margin or be subject to margin calls. All you need to do is allocate a certain amount of money you want to invest in building equity aggressively and be patient with it. The volatility we have in these securities is amazing. It meets our criteria to trade the volatility successfully by applying our proprietary algorithms. ETFs are one of the most incredible instruments I have found that have allowed me to hold on to it as a swing position or as a long-term position trade without being subject to margin call like a futures contract.  It’s an incredible way to make money with the metals, and we are producing 10 to 1 more profits by trading these instruments, than actually trading a futures contract.

TECHNICAL SUMMARY

The gold and silver markets dropped sharply after fulfilling a decisive upside target by reaching a high of 1.263 the week of February 11th, 2016. This advance which was led since the middle of December into last week validated and confirmed the long-term prospects for 2016 to be the beginning of the next secular gold bull-market in gold and silver. The market’s reaching its targets for this cycle period last week could usher in a time when some consolidation could take place.

*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts.

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  • motoapk very nice

    May 1, 2017 at 12:44 am

    I appreciate you sharing this article. Really Cool.

  • brett

    June 4, 2017 at 5:44 pm

    Thanks for the compliment! Glad you found value in this article about investing with the automatic investing method (AIM).

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