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Ultra Conservative
(Long Only)Shorting a security or index tends to greatly increase risk due to the increased volatility. Additionally, a stock can only go to zero, but can rise to infinity (in theory), therefore when in a SHORT position, the potential gains are limited, while the potential losses are infinite. Additionally, some investors are true bulls at heart, and do not want to short the market. These, extremely conservative investors, can still use market timing to vastly improve their performance over the traditional (and flawed) buy and hold approach.
For the TimingLeader.com subscriber, an ultra-conservative strategy can be employed simply by purchasing shares of a mutual fund that tracks the performance of the NASDAQ-100 (NDX) only when a LONG signal is issued. In the case of a SHORT, the subscriber would sell their shares, assuming a cash position until the next LONG signal. Any of the NDX tracking mutual funds illustrated in our other three strategies could be used based on your personal risk tolerance.
Example:If you decided to follow our signals using an ultra-conservative strategy, you would buy shares of RYOCX or RYVYX when a LONG signal is issued. The goal of these three funds is to achieve 100% and 200% respectively, of the daily performance of NDX.
When a SHORT is issued, you would then sell all of your shares, putting your money in a sweep account, money market, or savings account, and thus insuring that your profits don’t get eaten up in a down market.
We at TimingLeader.com believe that short positions are an important part to market timing. By not participating in them, investors are missing out on at least half of the potential profits they could be making. Additionally, looking at our trade history, you will see that most of our best trades have been shorts. For these reasons, we will not track the performance of our ultra-conservative strategy. To do so on your own, simply take out all of the short positions.
