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I have never been involved with ETF trading and it seems pretty exciting. I would like to try it out and Jeff Bishop seems just about the right guy to follow. Is it logical to follow short-paced swing trade strategies on EFT or middle to longer term investments? I’m not a pro on the subject, so please don’t judge me.
Hi Tyler – great question. It depends on what kind of ETF’s you’re trading and the time horizon you’re looking at. Your approach is completely up to you, but there are ETF’s available for all three: short-term, medium-term, and long-term trades/investments. They pretty much trade just like stocks, but are simply a basket of assets instead of a singular one. For example, HACK is a cyber-security ETF made up of various cyber-security stocks. So if you think the cyber-security industry will rise, it might be a good idea to simply buy into HACK for diversification and cost savings, as opposed to buying the individual stocks within it separately or trying to guess which one or two will outperform. There are also leveraged ETF’s that are more volatile and can be used for short-term trading strategies. Overall, ETF’s are versatile and can provide quite a few advantages for traders/investors depending on their approach.
Hi, may I ask if you invest into bitcoin or other virtual currencies as well? It is great to have experts but I need to know where my money go especially nowadays when everybody invest in bitcoin and people get crazy about a virtual currency. Also can you advise what a minimum investment is? Thanks for your advise
Hi Marty – good questions. I don’t personally have any bitcoin or cryptocurrency holdings at the moment, but I have traded a bitcoin-related stock recently under the ticker DPW. This was a stock that was brought to my attention by swing trader, Jason Bond, who wrote a long-term report on it a few months ago back when it was only trading in the $.80 range. In recent weeks, it has spiked over $5.00. Him and his followers have banked thousands on their positions in it. Unfortunately, I missed the initial surge in mid-November, but I’ve made a few bucks on it day and swing trading off of various support and resistance levels over the past week or two.
Programs like Top Stock Picks and Jason Bond Picks are educational services that teach you concepts and provide mentorship that allows members to learn the critical concepts and strategies required to make money in the markets. The individuals who run these services don’t have any control over your personal portfolio, so the minimum investment is completely up to you and what you’re comfortable with. The average new member probably has a starting portfolio in the $2,000-10,000 range, if that helps give you an idea. The most important aspect, however, is to focus on education first before anything else. Having at least a foundation of trading knowledge from one of these programs helps beginners avoid costly trading mistakes by jumping right in too early. Take a look at these Free Resources for some great places to start learning. Cheers!
Top Stock Picks seems like something that I definitely need to check out here soon. I am interested in learning and investing in the stock market, and have been using an app called Stash in the past few months, which has helped me get a feel for how things work.
I was recently looking into joining Forex, as I heard that they have an unlimited trial of trading with no money, so you can see how things work, and then invest when you’d like. Is TSP similar to, better than, or completely different than Forex? Or are EFT’s completely different from regular stocks?
Hi Christopher. There are paper trading options available for both the foreign exchange (forex) and stock market, so you can practice various strategies risk-free and at your own pace.
The Top Stock Picks service is led be Jeff Bishop who does not trade on the foreign exchange market, at least not within this program. Forex is completely separate from the stock market and allows for currency trading only. That’s not to say that Forex trading is bad by any means, but the Top Stock Picks platform doesn’t focus on trading it.
Jeff Bishop trades mainly exchange traded funds (ETF’s) within TSP, which are essentially a basket of assets that usually track a particular index, sector, or commodity. These securities trade on stock exchanges much like common stocks, and are highly versatile for traders looking for increased exposure (via leveraged ETF’s) or bearish exposure (via inverse ETF’s) on whatever index, sector, or commodity they’re tracking. Overall, there are a number of advantages to trading ETF’s at TSP.
I hope that helps clarify some of these terms for you, and if you have any additional questions, certainly let me know. Take care!
If the market takes a dive next month as some are expecting, and I would try and leverage with some shorts, would there necessarily be short positions recommended at the time? Also, does the company recommend or work in tandem with certain brokers or brokerage companies that may help its clients? Thank you for the information.
Hi James – great questions. If Jeff Bishop thinks fundamentals and sentiment in the market are negative and that certain indexes and/or sectors will take a dive, then he’ll certainly position himself in short-biased trades to back up his convictions. I believe right now he’s actually short-biased on the small-cap index (IWM) and biotech sector (IBB).
In order to take advantage of this, he’s currently holding IWM puts in his Millionaire Roadmap options portfolio and LABD in his Top Stock Picks ETF portfolio. LABD is a 3x leveraged inverse ETF that tracks the biotech sector. In other words, if the biotech sector (IBB) drops 1%, LABD will increase 3%. Overall, his strategy of trading ETF’s is refined and versatile.
His program does not recommend or work in tandem with any brokerage firm. That choice is completely up to the subscriber. Members use various different ones like Interactive Brokers, TD Ameritrade, Ally Invest, and Robinhood, but I believe the most popular amongst subscribers is E*Trade. I’m 99% sure Jeff mainly uses E*Trade as well. I hope that helps answer your questions. Take care!
I know just enough to be dangerous when it comes to stocks. It mutual funds for me. I don’t mind paying a person or group of people to take care of all those stock in the fund. If they are good, I don’t care if they make a really good wage to do it. When I had control I would sell out after the first dime of raise. Like you said, too eager to pull the trigger early. Would always cost me. Your site reinforced the thought that it is better for me personally to let others have some control of that area of my finances. Can a person learn to enter into stock trading with calm nerves and make the correct calls under pressure?
Hi Bobby – that’s a great question. Active stock & ETF trading isn’t necessarily for everybody. It’s important to take into account factors like personality, preferences, and schedule when it comes to deciding if it’s right for you. That being said, I don’t think it’s impossible to train yourself to be more patient and calm under pressure. That sort of thing, in my experience, comes through experience. When you’re first starting out, sometimes these things can be worked out through mentorship and paper trading. And once you have a solid foundation in what you’re trying to accomplish, I think reviewing those results and making proper adjustments can be critical. That’s why it’s so important to track your results so that you can go back and see what your strengths and weakness are. Over time, it can become easier and less stressful when you have complete confidence in your knowledge, abilities, and approach.
Top Stock Picks is a great site. There is a lot helpful tips about how to make a lot money with that knowledge about ETF market. I will remember your site and learn from it as well. Very helpful and showing steps about how to make money trading and the estimated percent of what I can make…Its a lot hard work studying to make it in this.
How do you feel between Stocks and Real Estate? Which one do you feel is the safer bet? I tried to do stocks a year ago and put money into Disney and Exxon and didnt gain very much over the course of a year and a half…
Do you think its best to invest in dividends or more of stocks that will raise?
Hi Brandyn. I can’t really speak to real estate investing since I’ve never done it before, but I feel like that’s a fairly broad question. It all depends on the specific stocks and real estate. Just like there are good and bad stocks to invest in (depending on your strategy), there are good and bad pieces of real estate to invest in. It all comes down to education and research, controlling risk, and making smart choices at the right time.
To answer your question about which stocks are best to invest in, it depends on your individual goals and preferences. Disney and Exxon are known as blue-chip stocks – well-known companies with tons of liquidity, but unfortunately, not all that volatile. Over time, they’re expected to churn upward, but at a relatively slow rate. There’s nothing wrong with investing in these stocks, but if you have a diversified portfolio, you can only expect about a 10% yearly return, which is the average annual return of the S&P 500. Most people who invest in these securities are looking to hold for a year or longer – it’s a “buy-and-hold” approach.
Then there are short-term day and swing traders who typically target “riskier” stocks. These companies aren’t as well known, have less liquidity, and can be extremely volatile. With the right approach, that volatility can be exploited for massive gains on an intraday basis or extremely short period of time (usually a few days to a few weeks). In most cases, these stocks aren’t typically good long-term investments, which is why traders want to be in-and-out of them relatively quickly – that’s one method they use to reduce their risk.
Overall, it’s important to understand the difference between investing and trading – and which types of stocks are typically pursued for each. For example, I’ve seen individuals get into trading penny stocks thinking it’s about finding a company that will turn into the next Microsoft or Google – the chances of finding that in a $1.00 stock is extremely unlikely (they’re $1.00 for a reason). But that doesn’t mean that a $1.00 stock can’t jump up to $2.00 within a day or two on news of a new contract, hype of a partnership/buyout, or some other reason. There are lower-priced stocks that spike 50-100%+ every single day, which is why short-term traders target them for quick profits over-and-over again. With blue-chips, it’s nearly impossible to see these types of huge intraday, weekly, or even monthly movements.
Personally, I like a mix of both. For my retirement accounts, I prefer blue-chip stocks and index funds. With a long-term horizon on that, I’m OK with modest 5-10% yearly returns. In order to generate a supplemental income “right now”, however, I like to pursue swing trading (hold times of a few days to a few weeks). It’s a much shorter-term approach but the potential returns are higher. It’d be quite difficult to grow a portfolio 50-100% per year trading blue-chips – they’re just not volatile enough. Generating a solid income doing so would require a large dollar amount to start. On the other hand, a successful short-term approach requires less capital in order to generate a full-time income. I hope this response helps answer your question – Cheers!