This post was sent out to our subscribers on 21 February 2013.
ProShares Ultra Gold (UGL) seeks daily investment results that correspond to twice (200%) the daily performance. This means that when gold price goes up 1%, this ETF will go up 2%. Vice versa it also means that when gold price goes up 1%, this ETF will go down 2%. Hence the risk is higher compared to a normal gold ETF like GLD.
Currently UK, USA, Europe and Japan are implementing qualitative easing. Qualitative easing simply means printing of money. Gold is the only currency that cannot be print. Hence gold will become more and more valuable in the long run.
Today I had bought UGL at 74.82.
So far we have 100% success rate in commodity trading. Here are my past trades on commodities:
Oil ETF: 13.23% profit
Vale: 11.08% profit + 5% dividend
BHP Billiton: 10.27% profit
Gold ETF: 11.90% profit
Gold ETF: 9.59% profit
Silver ETF: 16% profit
Spot Silver: 516 pips profit
Spot Silver: 325 pips profit
To trade commodities is very simple, we will observe the trades of the insiders; we will use those information to differentiate buy and signal signals. After that we will check the chart using our designated indicator to find out if the entry point is good. If entry point is good, we will enter the trade using the exchange traded fund (ETF) or buy the stock that will most benefit from the rise of that commodity.
In our view trading commodity ETF has lower risk than buying common stocks. Commodity ETFs are not subjected to risk of accounting fraud or risk of negative earnings announcement or business risk which are hard to predict. If I buy oil ETF, as long as oil goes up, my oil ETF will definitely go up. It is that simple.
We do teach our investing students how to find commodity investment opportunities. To sign up for our Learn To Find Undervalued Stocks program, click at the link: http://findundervaluedstocks.com/learn-value-stock-investing.
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BL, CEO of Tactical Trading Academy – For Your Profits, Your Success Is Our Success!
“In order to succeed, your desire for success should be greater than your fear of failure.” - Bill Cosby