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Dear Traders and
Investors,
Most people are doing the exact opposite of what the big funds are
doing and they pay a big price for doing so. For example: you put
money into a stock after hearing that a fund manager really likes
it. However, by the
time you hear about it, the fund manager is getting ready to sell.
But what if you could see what the big
mutual funds are doing with their money well before they complete a
transaction and jump in ahead of them?
Wouldn’t
it be a huge advantage?
For example: if mutual fund managers
are buying retail stocks, you’d be able to get into those stocks
well before they get in and profit greatly as their activity drives
prices up. Imagine what
an advantage you’d have over other investors.
And we’re going to show you exactly how to do that.
Suppose that you are managing a mutual
fund and you need to move a billion dollars out of retail stocks
into Internet stocks. You
don’t just tell your broker to sell a billion dollars worth of
stock. Instead, you must give an order to a large brokerage firms
that basically says, “you have three days to get rid of this
stock… we’d like to get at least $998 million for the stock.
If you can get more than that, you may keep the extra cash as
your extra commission.” The
market then slowly sees a movement out of retail stocks.
And as one fund moves out, another may see the big picture
and start to move out as well, thus making the underlying movement
even stronger.
Furthermore, as the movement out of
retail stocks gets underway, the same fund manager may give
instructions to buy a billion dollars worth of Internet stocks –
and the broker may have a week to fill that order.
Gradually, you’d see retail stocks moving down and Internet
stocks moving up as one or more big funds shifts positions.
And the net result, is that the
internal conditions of the stock market shift even though the major
averages may not move that much.
What’s interesting for you is that you can learn to see the
overall shifts in cash flow as the funds start to move money around.
In fact, you can spot it quite quickly.
And you could have a huge advantage because big money tends
to move slowly, but you can move quickly.
In fact, when you get good at observing the flows of funds,
you can start making thousands of dollars each day at your
convenience. It’s not that hard. Ken
Long, a LTC (retired) in the U.S. Army, does it quite regularly.
And we’ll show you just how Ken does
it in this exciting workshop to teach you how to jump in front
of the big guys in their trades.
"It's worth the
time and money!"
--V. Pinto, NY
"Outstanding.
Most beneficial course I've attended." --Michael
Bonenberger
Introducing Ken Long, Your
Instructor
When Ken Long first attended my Systems
Development workshop in the mid 1990s and submitted his objectives
to me, I thought to myself, “Someone from the Army is going to
apply this material?” Little
did I know the Ken Long would not only apply it – he’d become a
genius at applying it!
LTC Ken Long is one of the
few people I know of who has a graduate degree in systems design. Because of his training, Ken can spot ideas that most people
never think of. For
example, when Ken attended our systems workshop and learned about
the complex training game we were playing he developed a procedure
for strategizing about the game that I now teach in that workshop.
He’s that good.
Ken’s business plan is one that I use
as a template for teaching business planning to traders. Again, his work is exemplary.
You may have heard of Ken simply
because of his Tortoise system for switching between mutual funds. That system made over 100% trading real money in an IRA in
1999. And it has generally
made pretty good money even during the bear market.
But what’s even better than mutual
funds are the ETFs because their costs are minimal and they totally
represent a sector of the trading arena that you might want to
participate in. Fortunately for us, Ken has developed methods to master this
form of trading as well. And
you’ll learn how to use this form of trading to master getting
ahead of what big money is doing.
"Excellent course for understanding
ETFs and how to incorporate them, both short-term and long-term
into your trading plan.
"Ken
is an excellent instructor with a terrific commitment to making sure
everyone understands the material. He is one of the best, if not THE
best trading and system design instructor I know." R. Freeman, CA
"Very
thorough, detailed, with dedicated speaker who went out of his way.
Great course Ken!" Mike Doseck
And what Ken does is not that
hard. He says that if
he can do it, anyone can do it!
You don’t have to watch a lot of
stocks to determine what the big funds are doing. Instead, you just have to know what a few select funds are
doing to determine what’s going on.
For example, today the overall market was down 0.4%, but the
semiconductors were down 1.5%.
And if you’d been watching them, you’d have known about
it in advance because the semiconductor sector has been moving down
for five straight days. While
most people lost money today, you could have made a lot of money in
a short position in the semiconductors.
Okay, let’s define some terms
first. What we’re
talking about here is watching the movement of big money via
Exchange-Traded Funds (ETFs). What
are Exchange-Traded Funds? They
are funds that reflect the big sectors of the market.
For example, you can buy a fund that represents the Internet
sector of the market and short another that represents the retail
sector of the market. And
you can do this in seconds, as soon as you spot what the big money
is doing. So while big
money might take a week to move money around, you can jump in ahead
of them and take advantage of money flowing into the sector you’ve
just bought. Again, the advantage is huge.
So how would you like to learn six
different strategies that allow you to take advantage of what big
money is doing and turn it into big money for you?
One of those strategies will probably
be just right for you:
Strategy 1:
For people who have little time to trade but would still
like to outperform what most people can do in mutual funds.
If that’s you, then Ken has a system that requires a
decision either once each year or once each quarter.
Are you willing to spend several hours per year or quarter to
update yourself on what’s happening in the market to make good
money? If so, then this
strategy is perfect for you. The
strategy is also very low cost and tax efficient and you’ll learn
why.
Strategy 2:
Playing Macro Trends.
If you’ve read Safe Strategies for Financial Freedom,
then you understand that the big picture includes a secular bear
market possibly lasting another 10-15 years, a strong possibility of
an inflationary bear market, a weak dollar, and the winding down of
our huge debt in one way or another.
Do you want to know how to profit from those trends quite
easily with Exchange Traded Funds?
Again, this strategy doesn’t require a lot of time, but it
can make you a lot of money.
If you are a fundamentalist with
opinions about the different macroeconomic trends and want to
position yourself to take advantage of business cycle imbalances
and/or currency rate fluctuations, you can do that effectively with
a select set of ETFs indexed to regions and specific countries.
Here is a
specific example from Ken:
Throughout 2004,
the Latin America region and emerging markets consistently
outperformed the US, Europe and Asia sector on a sustained basis.
You could have determined this by assessing the relative
strengths of ETFs that track these regional indices on a weekly
basis. Furthermore, I
also observed this by noticing that mutual funds that specialize
in those two areas strongly outperformed their peers in market cap
and investment style in other areas.
As a result, I built and reinforced incremental positions
in ILF (an ETF that tracks a composite index of Latin American
large caps) and EEM (an ETF that tracks the emerging markets).
As the positions went up, I used trailing stops based upon
volatility. The net
results were that over the long term, I was able to realize
low-risk gains in a systematic and disciplined way that far
outperformed the US indices that slogged through the doldrums for
most of the year. These
insights also offered trading opportunities on a shorter-term
tactical basis in individual stocks and ETFs in these sectors as
well. Here’s a
quick tip. Do a quick
comparison of ILF and EEM against SPY (as a proxy for the US
market) on weekly charts over the last year to see the usefulness
of comparing regional strength on a regular basis.
For another example, suppose you
have a belief that the Chinese have a position of competitive
advantage over the US and Europe with their cheap labor, broad
markets, a currency pegged to the dollar, a rapidly growing
manufacturing base, and the momentum of market timers seeking to
jump on the latest investment idea. You believe all of those things, but how can you get exposure
to the Chinese market in a variety of different ways in the safest
way possible? The
answer is to do so with ETFs without exposing yourself to the
risks of investing in specific companies or expending the time to
conduct detailed research in that area.
Strategy 3:
Sector Rotation.
If your strategy calls for systematically buying weakness in
market sectors when there is evidence that big money might be moving
into the area, then you’ll learn an ETF strategy that will be just
right for you. In
addition, if your strategy calls for systematic selling when there
is evidence that big money is starting to pull out of the sector,
then you can also use an ETF sector rotation strategy.
In this workshop, you’ll learn how to quickly and
consistently measure relative strength to find those opportunities.
The S&P 500 Sector Select SPDRs break out the S&P 500
companies into one of 9 sector ETFs that feature good daily volume,
relatively smooth trading curves, and the comfort of large cap US
companies in a defined sector that is tracked closely by both
technicians and fundamentalists.
The bid-ask spreads are reasonable and the volatility is
sufficient for swing trading to work, although you can also do this
as a long-term play.
Here’s an
example of how Ken uses this technique:
The energy sector had a powerful move in the summer of
2004 on rising oil process and increased consumer demand.
It consolidated its gains in the fall.
Entering the week of 19 November, the energy sector had found
support after spiking to annual highs on record oil prices in
previous weeks. On Nov
19, XLE (the energy ETF) broke out of its trading range on the
hourly charts, offering an entry at 36.25 with a 50 cent trailing
stop below the near term support. Over the next 4 trading days, XLE offered reasonable intraday
exit points going into the lunchtime session at 37.4 and 37.9 which
made for smooth 2R or 3R trades, capturing a 3% and 4.5% move
respectively, by playing a rebound in a very strong sector in a
breakout. Making 3-4%
short-term translates into huge long-term gains.
Strategy 4: Pattern based Swing
trading.
Technical traders at institutions that move a lot of money
can move the markets short term – and those moves can be
significant. By
focusing on some simple, but common, patterns you can use your edge
as an individual investor to anticipate short-term moves by big
money investors and generate low risk trading ideas.
Buying pullbacks to support levels in strong trending sectors
is just one of the patterns that work.
Ken says he particularly likes trading
the pharmaceutical sector (PPH) for such trades for a number of
reasons: it has enough daily volume that the spread is reasonable;
it’s based on 20 large cap pharmaceutical companies so there is
inherent value in the companies with prices driven primarily by
fundamental analysis; it is a recognized sector and technicians make
assessments of it as an integrated whole; it often trades inversely
with the technology sector and so on days when tech is selling off
PPH can be a nice quiet smooth long trade.
Strategy 5: Over-reaction to news.
You can profitably trade
psychological reactions to unexpected news without having to be
right about the ultimate significance of a piece of news.
For example, when Merck announced pre-market that it was
pulling Vioxx off the market, you could predict two things with
certainty for the next trading day.
First, you could predict that here would be panic selling in
the pharmaceutical sector and that bargain hunters would seek to
snap up the shares at fire sale prices.
Both of those events occurred and were much easier to trade
with the Pharmaceutical sector ETF than in the shares of individual
pharmaceutical companies. You’ll
learn how to do the same thing with news that you hear.
Strategy 6: Intraday Scalping.
Institutional money managers often use futures and index
trading to establish positions and hedge portfolios on an intraday
basis. In this
workshop, you’ll learn how to apply the some key principles that
will give you clues to what big money is doing intraday.
Thus, even on an hourly basis, you can jump in front of big
money by trading ETFs. Imagine
what this strategy could do for your bottom line.
What Else Can I
Expect to Learn? There are
six money making benefits awaiting you. They’ll help you
make more consistent profits, keep your losses smaller, and help you
be more relaxed about your trading.
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Learn how to take advantage of current year losses to minimize
taxes while maintaining exposure to specific market sectors.
For example, suppose you want long-term exposure to
gold stocks, but you have a loss on them for the year.
Ken will show you how to get your tax loss and still
own the gold stocks.
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Second, you’ll learn to improve your interest income on
short-term cash positions.
If you have a large account, this strategy alone could
be worth many times the price of the workshop.
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Third, you learn how to hedge your portfolios in the
short-term to protect large gains or to protect against
losses. These are
huge advantages for you when you learn to do them properly.
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Fourth, you’ll learn how to profit from currency imbalances
without becoming a currency trader.
For example, the Forex market requires a specialized
type of trading that often takes months to learn to do
properly. But Ken
will show you how to do this easily with ETFs.
For example, during a workshop four years ago, lots of
Australians were complaining about the lack of purchasing
power of their Australian dollar.
These complaints usually get loudest at market bottoms.
And when Ken heard about this, he was able to buy the
equivalent of a basket of Australian stocks simply by buying
the Australian ETF.
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Fifth, you learn simple tools to lower your portfolio risk and
manage your trade positions in minutes a day.
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Lastly, but perhaps most importantly, you learn how Ken adds
discipline and consistency to his trading through the use of
checklists, rehearsals, contingency planning and debriefings.
We’ll give you the same worksheets that Ken uses, so
you’ll leave the workshop with the same advantage.
Here’s What’s
Waiting for You!
Day 1:
“Building Your Toolbox”
On Day 1, you’ll focus on assembling
the toolbox you need to design and operate your ETF trading
strategy. You’ll
learn about the many different types of ETFs available, how they are
constructed, and how they trade. You’ll also learn about the parts
of a trading system and how your beliefs and objectives form the
basis of effective system design. You’ll learn how to use ETFs to determine what big money is
doing which is a core part of most of the strategies you’ll learn.
You learn about the advantages and disadvantages of different
types of ETFs based on the type of system and time frame you favor.
You’ll also learn essential skills to enhance your system
operation, with concepts like position sizing and portfolio heat.
And lastly, you’ll study useful indicators that measure strength
of trend and volatility and learn to identify common reversal
signals. And all of
that is just on Day One!
Day 2:
“Learning to Use Your ETF Tools”
On Day 2, we look at different time
frames for trading and learn in detail how ETFs can be applied as a
stand-alone system for trading or as a supplement to a portfolio.
We examine the specific rules for entry, position sizing and
exit management of six different trading systems in various time
frames. We use case
studies and examples to learn the fine points of each strategy and
learn how to base our decisions off of simple yet robust indicators.
Learn the power of position sizing as a risk management tool.
Develop your personal ETF strategy, using the tools and
techniques that fit your objectives and beliefs by working in a
small group of like-minded traders.
Day 3:
“Putting Your ETF Tools into Practice”
On Day 3, we put it all together and
practice applying ETF trading strategies to case studies.
You’ll learn to pick the right strategy and apply it
effectively in real world situations through the use of case studies
and group work. You’ll
learn where to find research on ETFs and mutual funds to make your
trading decisions much easier and save a lot of time.
In addition, you’ll receive group insights on the specifics
of your personal ETF strategy to the group (if you want!)
And
as always, you’ll be networking and meeting like-minded traders
and investors!
What
Else Past Students Say...
| "Outstanding
Value. If you want to become the best 'mechanical discretionary'
trader you can be, take this course." —David Smithers,
United Kingdom
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| "Some of the
most practical money making advice on trading systems that I have
ever received." —Tony Jackson, GA
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| "Excellent
stuff! Ken is a great teacher, human being and last but not
least, trader. |
| "This
is the third time I've [attended one of] Ken's seminars. And
every time it's a whole new experience. He's the best in my
book. A unique thinker, a great teacher, intelligent,
humorous and last but not least a trader with more than a
remarkable track record. I picked up more trading ideas in
three days with Ken that I can back-test in 3 years."
—Leo Willert, Austria |
| "It's
a great course! Do you want systems? Ken gives you a whole
load of systems on a wide range of time frames to choose
from. And he does not hide anything from you. All his
methods, reasonings and ideas, he offers them to you without
holding anything back.
“I found
Ken to be extremely clear and structured in his explanation
and presentation of his systems, beliefs and techniques.
Awesome information for traders of any level of
expertise." —Jordi Llobet Serra |
| "One
Word: Excellent....I learned how to fit ETF's into my current
strategy. The 'world model' created by Ken helped me identify
macro trends much easier." Ferdinand Ledesma
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| "It's
worth the time and money. [Ken Long is] very accommodating and
responsive. He deserves more than a 10." Vito Pinto
|
| "Very
impressed. Ken over delivered on the course objectives and with a
lot of his own real-world experiences, all with a good delivery
and sense of humor. I leave feeling I can grow my account better
than a market benchmark using a disciplined approach without a lot
of weekly time and make a little extra using multiple strategies
on ETFs." David Holland
|
| "The fact that
there were so many high-powered money managers in the class was
quite impressive. Their attendance is a more powerful
recommendation than any I could give." —Fred Link, GA
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| "The
little guy rarely gets an opportunity to be mentored by
someone who has developed and can deliver the complete
package of trading beliefs and discipline. Add on top of
that the privilege of getting to model his best strategies
and methods was for me, the best value yet for my trading
education experience." —Grill Kull, CO |
| "Superb!
Great teacher, very enthusiastic and knowledgeable." Al
Lizarraras
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| "Very
helpful information that gave me a good foundation for putting
ETFs into perspective compared to stocks and mutual funds."
Mark Ledbetter
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| "This
was a great introduction to ETFs. I especially liked that it
showed me techniques for trading ETFs using short-term strategies."
Al Mayo
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| "Acquired
practical trading strategies that I can employ tomorrow with
confidence." Riley Uglum |
| "Excellent.
Good common sense for the person who can only look at the markets
after work. Ken is up 100% during secular bear markets
(2000-2005). How many people can match that? Ken does all
the work: he gives you the systems, tells you how to trade them and
then gives you the data through his website." Van Tharp |
| "Best
course yet -- both in quality and quantity of material. Ken is a
great teacher!" Jon Collard |
| "It
was quite comprehensive with a good blend of basic background
material and application, as well as Ken's philosophy." Joe
Pleasants"It
was quite comprehensive with a good blend of basic background
material and application, as well as Ken's philosophy." Joe
Pleasants |
| "Excellent.
Provided something for everybody." Robert Hartley
|
| "Great
'all-weather' market strategies which are safe and
risk-managed" Mark Neises
|
| "Extremely
comprehensive 'top down' approach to trading ETFs. Superbly
presented by Ken Long in a very understandable format. I give this
course a 10 out of 10. Good job! Ken is clearly a man of great
integrity and because of this, he had my trust in the material he
was presenting immediately." Tim Ridge |
| "Great
Course. Lots of new ideas for trading." John Kelly |
Register
Now
Frequently
Asked Questions and Answers
Q: Can
you really make lots of money with these principles?
Absolutely, just think of the advantage
you’ll have being able to jump in front of large mutual funds
because you’ll have learned the skills to anticipate what they are
doing.
Q:
I am already a profitable trader, why should I consider attending
this course?
What
if you learn one new technique that could save you several thousand
dollars each month or some new way of looking at the market that
will help you earn thousands of new dollars.
Don’t you think that would be worth your time?
Q:
I am new to trading. Will this course help me?
Absolutely,
you don’t have to be an experienced trader to learn how to spot
what big money is doing. Furthermore,
Ken will teach you exactly how to profit from it.
Q:
I want to become the best trader I can be, does this course show me
how to trade?
While
our purpose is not to give you a basic education in the ‘how to’
of trading, we’ll be covering the basics that are required as they
apply to ETFs. As a
result, you’ll learn key material that will take you to the next
level of trading.
Workshop
Details:
The
price of the
How
To Trade Exchange Traded Funds Workshop is $2,495.
But if you register early enough you will qualify for a $700 early
enrollment discount and pay only $1,795 Click here to register now
or to see dates and locations.
Bring
a friend with you who is new to the Van Tharp Institute and you both
will get an additional $200 off your tuition. Call 800-385-4486 or
919-466-0043 to register you and your friend.
Our Risk-Reversal Guarantee!
Dr. Tharp totally guarantees that you
will be delighted with it. In fact, we'll take all of the risk
ourselves. If you aren't totally satisfied by 12 PM on the second
day of the course, you'll receive a full refund for what you paid
for the course. Just return your notebook to an IITM staff member
and we'll refund your course fee even though you've already had many
of the benefits of the course.
Why are we willing to assume your risk?
The key to our guarantee is, if you are ready to work on yourself,
then there is no risk to us. We know you'll be delighted.
Sincerely,
Van K. Tharp
Your Trading and Investing Coach
P.S. Remember,
if you register early enough you will qualify for a time-limited, early enrollment discount of $700!
And, if you bring a friend or colleague who is new to my courses,
I’ll give each of you an additional $200 discount and you can
combine that with the early enrollment discount for a whopping
discount of $900! But you must act early to ensure you meet the
deadline.
Register
on line by clicking here
Or call to register:
800-385-4486, 919-466-0043
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