Tools For Mutual Funds?

[dnorm132]

Maybe a dumb question but...Since I'm a newbie and only paper trading now(investopedia) but have a substantial amount in an S&P 500 index mutual fund, can I use the tools to assist me in moving back into cash then back into S&P fund based on the 3 tools until I am ready to use $ in individual funds? If so please be as specific as possible as to how for this newbie (I may not understand all the terms). Thanks for your time and input. Don

[dnorm132]

No one?

[Gunnski]

Hello dnorm,

The tools do work for mutual funds & ETF's. I use them on the QQQQ right now. They have sucessfully got me into the QQQQ and out. I then trade the QID (2x's short the QQQQ) when the tools give signals to go that route.

I do set the MA(30) for buys, with Stoch. & MACD. I use the MA(10) to sell, with the other (2) tools. I like to put RSI(14) on the chart and VOL. just for additional tools.

I suggest you back test your M.F., ETF, Index etc. on a 2 yr & 5 yr daily chart. Check your results against the signals given.

Good investing!

[nilminih]

Hi Gunnski,
Do the mutual funds and ETF's work same like regular stocks or do they charge somewhere around $500 per trade? What do you mean by "BACK TEST"?

Originally Posted by Gunnski

Hello dnorm,

The tools do work for mutual funds & ETF's. I use them on the QQQQ right now. They have sucessfully got me into the QQQQ and out. I then trade the QID (2x's short the QQQQ) when the tools give signals to go that route.

I do set the MA(30) for buys, with Stoch. & MACD. I use the MA(10) to sell, with the other (2) tools. I like to put RSI(14) on the chart and VOL. just for additional tools.

I suggest you back test your M.F., ETF, Index etc. on a 2 yr & 5 yr daily chart. Check your results against the signals given.

Good investing!

[Gunnski]

Backtest. Set up your tools and check a 2 yr. and 5 year chart. Check to see if you caught the buy and sell signals. Did those signals follow through.

ETF's trade like a stock. You can get in and out on a moments notice (or when your broker fills your order, buy or sell).

Mutual funds do not. You are in until the markets closes and or re-opens the next market day. This can be a killer in the current choppy market.

Long term investors are going to scoff. As time should be on your side and this choppy market will work itself out. You need to decide if you are an investor or trader. There is a very big difference. Once you have your answer. You can start plotting a course to profitability.

I just researched mutual funds and came up with 8 very good ones with and the good news is thew minimun to buy is $50.00. Most M.F's will not even look at you unless you have $2,500.00-$5,000.00 to open an account.

I like ETF's, especially for the small guy or someone just starting out. Find a hot sector or market and you'll most likely find an ETF that tracks that market, sector, or index.

Please note Phil outlines in his books you will probably not make any money simply using the tools. So please do your own due diligence.

[Gunnski]

Just a quick follow up. My opinion is, the outlook on this market is poor. I think we will be in a recession within one year, 36 months max. Jan. 2008 looks to me like it will be brutal month. We may test Aug. lows. If you have positions, follow close with the tools!

Just one student's opinion. Really, I hope I am off on this prediction!

[nilminih]

THank you Gunnski. No, I wouldn't just go in to buy mutual funds or ETF's without knowing about them. Few days ago one company sent me a booklet about mutual funds and it seems like they charge $500 fee or more just to purchase it.

Originally Posted by Gunnski

Just a quick follow up. My opinion is, the outlook on this market is poor. I think we will be in a recession within one year, 36 months max. Jan. 2008 looks to me like it will be brutal month. We may test Aug. lows. If you have positions, follow close with the tools!

Just one student's opinion. Really, I hope I am off on this prediction!

[Gunnski]

I would not do that, unless your sure. There are some out there in which you can get in for around $50.00 and then make contibutions of right around 50.00 a month. Try a Mutual fund or ETF search on MSN. They have lots of good info.

[nilminih]

What is the criteria you use, to find good ETF's or Mutual Funds?

Originally Posted by Gunnski

I would not do that, unless your sure. There are some out there in which you can get in for around $50.00 and then make contibutions of right around 50.00 a month. Try a Mutual fund or ETF search on MSN. They have lots of good info.

[rei46]

Originally Posted by nilminih

What is the criteria you use, to find good ETF's or Mutual Funds?

ETF's are a basket of different company stocks, mostly within the same industry or sector. You can check what companies are within the ETF on MSN. Then, its just individual stock researching.

Might be another choice other than a mutual fund. Say if you have an IRA. Offers diversification and ability to trade in and out like a regular stock.