Both of these trading strategies were inspired by Dan Zanger, the trader who was featured in Fortune Magazine because he took $11,000 and turned it into $42 million within two years.

One of the secrets to Dan’s success was his use of price and volume. This got me to thinking about how price and volume signals can be used to create wealth in the stock market. After reading about Dan in 2000 I set out to see if I could crack the code to stock market wealth with price and volume signals like Dan did.

I didn’t want to do it with stocks since they are at the mercy of whatever sector is in fashion at the time (and I didn’t want to have to keep track of sectors also).

The logical decision is to track the price and volume of Indices since they are an overall picture of all sectors and offers diversification. Unfortunately, back in the early 2000’s you couldn’t trade the indices with any success.

It wasn’t until a few years ago that ETF’s emerged and gave us a vehicle to play the markets up or down. Perfect for what I was attempting to do.

So in 2009, with the advent of ETF’s (especially inverse ETF’s) I was able to implement my dream and create two trading strategies using price and volume signals to signal the proper time to use TNA or the proper time for TZA.

It’s been three years in use and while neither strategy gained every year, they did show a profit if used two years or more. I recommend the use of both. Half your funds on one and the other half on the other (rebalance every year). Using both strategies at the same time has produced a 50%+ GAIN EVERY YEAR! Below are the full stats.

If you use both together, half your funds on one and half your funds on the other, you can get a more diversified return of:

Average Returns:
2009: +94% (the S&P did: +25%)
2010: +45% (the S&P did: +13%)
2011: +85% (the S&P did: 0%)

The average return of these two strategies is 75% per year compared to 12% per year on the S&P. That’s 6x better. Do you see how powerful these two strategies are?

I’m giving these two strategies away for free to members of my “Go With The Flow” Index Trading System. You do the math. See how fast your money will multiply and then YOU decide if you want to join me and my fellow traders on the inside.

Click this link for more information about my
“Go With The Flow” Index Trading System.

In the post I said the market is about to make a big move to the upside or downside starting on Wednesday of last week. As we see in the below chart the S&P fell for three days straight, broke through it’s support line, and now lies at it’s lowest point in over a month.

I take it you all followed my advice and moved to cash and protected yourselves from losses, good job.

Now we are ready to profit off the markets next big move. I see it happening around Tuesday, maybe Wednesday, of this week. I see a potential gain of 10% in a matter of days.

Basically, you buy and sell an Index instead of stock in a company. You can trade the DOW, the Russell 2000, the S&P 500, or whatever index you wish.

The advantages to trading an Index instead of a stock are many.

1) When markets rise, only 75% of stocks will rise with it. There is no guarantee that the stock you picked will rise with the market. However, with Index Trading, if the markets rise you are guaranteed to have a winner as 100% of the Indices will rise with it.

2) Another great advantage is LEVERAGE. With stocks you have to use margin to get leverage. With Index Trading you never borrow money and you can leverage your portfolio up to 3 times return. Fir example, if the markets rise 1%, you get 3%. Best leverage there is.

3) You can make money when the markets drop so much easier with Index Trading. With stocks you have to short-sell and are at the mercy of your broker if things go wrong. With Index Trading you never need to borrow shares to short-sell and therfore are always in complete control of your investment.

Now that I’ve laid out the advantages, let’s see how it all works.

Step 1: Pick an index to trade.
Step 2: Decide how much risk you are willing to take. 1 = minimal. 2 = moderate and 3 = maximum.
Step 3: Now that you know the index and how much risk you are willing to take, now you must find an Exchange Traded Fund (ETF) to trade. Do a Google and find the ETF that suits your needs.

Example: I want to trade the Russell 200 and I’m willing to take moderate risk (2). I can Google “Russell 2000 2x ETF”. To search for others simply change name of the Index and change the number based on your risk.

Searching Google for the above we find that UWM and TWM come up. Both are 2x leveraged ETF’s based on the Russell 2000 index. UWM will profit when the Russell 2000 goes up. TWM will profit when the Russell 2000 goes down. So you see, you can make money no matter which way the market goes.

Step 4: Determine market direction. Now comes the tricky part. This is where most traders get it wrong. You need to be certain of market direction. If you are sure the markets will rise, buy UWM. If you are certain the markets will fall, buy TWM.

With Index Trading you don’t need to worry about if a company will be profitable, if the management will fall apart, or even if the company you are buying stock in is going bankrupt. All you need do is be correct about the market direction. If you don’t know how to determine that I suggest you spend a few years learning technical analysis.

OR

You could take the easy way out. I currently run an Index Trading portfolio (I call it Go With The Flow) that as of September 7, 2011 is up over 51% (while the DOW is only up 1%). The easy way is to just partner with me and let me monitor the markets for you. I’ll tell you when the markets are going up and when they are going down. No need to waste years studying charts, etc..

If you want the quick route to gains, please visit my Index Trading Strategy page for more details on how you can partner with me.

Here are the 2010 returns and stats for my 2 income strategies (designed to put money into your pockets):

Strategy #1: Special Play (hold stock one month or less)

No of stocks given out: 20
No of winners: 14
No of losers: 6
Winning percentage: 70.00%
Average return: + 7.05%
For every $10,000 invested per month, $705 of income is generated.

Strategy #2: Take 5 (holding period is one week to one month)

No of stocks given out: 3
No of winners: 1
No of losers: 2
Winning percentage: 33.33%
Average return: – 3.52%
This one was started in November 2010 so it doesn’t have a long track record yet. Tests have shown it should return an average 5% per stock (hence the name TAKE 5).

Don’t miss out on 2011’s returns, join up here. Also, you can find the results of my portfolios for producing growth by clicking on this link.

Here are the 2010 returns and stats for my 4 growth portfolios (designed to grow your money into huge sums for use in retirement):

Portfolio #1: Monthly (1 stock pick per month)

2010 return: + 84.35%
No of stocks given out: 12
No of winning positions: 7
No of losing positions: 5
Winning percentage: 58.33%

Portfolio #2: Penny Stock (1 penny stock pick per month)

2010 return: + 69.00% (annualized)
No of stocks given out: 5 (started this portfolio in August 2010)
No of winning positions: 3
No of losing positions: 2
Winning percentage: 60%

Portfolio #3: Weekly (1 stock pick per week)

2010 return: + 6.80% (annualized)
No of stocks given out: 41 (sat on the sidelines 11 of the 52 weeks in a year)
No of winning positions: 23
No of losing positions: 18
Winning percentage: 56.10%

Portfolio #4: Yearly (4 stock pick held for one year)

2010 return: -28.20%
No of stocks given out: 41 (sat on the sidelines 11 of the 52 weeks in a year)
No of winning positions: 2
No of losing positions: 2
Winning percentage: 50%

There you have it, four portfolios that each averaged a 32% gain for 2010. To put into perspective, the three major stock indices only averaged a 14% gain for 2010. Members to my Insider Club did 2x better than the markets.

I can safely claim that I not only beat the market by a big margin, I can guarantee not a single, high paid, mutual fund manager was able to beat my 2010 returns. In fact, at T.Rowe Price they manage 44 domestic funds and 18 international funds. Of the 62 funds they managed, NONE returned higher than my average return (and only 8 beat the markets returns). PATHETIC! And you pay these managers millions each year in salary and none can even beat my average return. Stop it. Get the best returns here and for a lot less.

Don’t miss out on 2011’s returns, join up here. Also, you can find the results of my strategies for producing income by clicking on this link.