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When asked why he climbed mountains, Sir Edmund replied, " Because they're there." The same sentiment can be applied to trading mutual funds. Between them, Rydex, ProFunds, and Direxion offer the means to trade 136 funds on a daily basis without ST fees. Some of them have mins as low as $0, making them accessible to small accounts. Some are leveraged. Some are inverses. By and large, all common investing objectives are covered. Whether funds can be traded profitably is a whole 'nother matter. My past experience says "Yes". But this is a tough market, made worse by the Fed's endless printing, the Congress's endless spending, and the US losing its wars with anyone bigger than Granada or Panama.

To trade funds --or stocks, bonds, currencies, commodities, etc.-- requires knowing when to get in/out, how much to buy, and how to manage one's inevitable mistakes. In short, a trading plan is needed, the discipline to follow it, and a good sense of how much uncertainty one can tolerate. Me? I prefer to sacrifice 'information risk' to lessen 'price risk'. In short, I'm a 'value investor' --as Ben Graham describes the gig-- and I trade breakouts/breakdowns.

The system I use is a variation of Quill's 'Simple Simon System' and depends on 'mean-version', not 'momentum'. So far, since project launch, I'm up about a gazillion percent (using the same fraudulent methods to report returns as those who host these forums). My initial inclination was to call out my trades real time, so anyone could piggyback them. But I've backed away from that, for this reason. Anyone who wants to trade funds (or stocks, bonds, currencies, commodities, etc.) is probably already doing so, just as anyone who wanted to trade Russian stocks on the basis of the discounts created probably already has a position on (and is up 80% or so in less than a month's time).

But for them who might be new to the game of trading mutual funds and who might want to create one of their own, I'd suggest working your way through Stan Weinstein's book, particularly Chapter Nine. That will give you the basics of making buy/sell decisions on the basis of technical analysis. From there, work your way through any of the books by John Murphy, Greg Morris, etc. and pick a charting style that appeals to you. Then go to, set up chart templates and watchlists and do enough backtesting of your rules to suggest your gig is doable. Then find a broker where you can implement your trades and fund the account. My suggestion would Schwab, especially since they are running a very attractive offer for new accounts.

Once you've done the previous and have done some actual trades, come back here and ask questions. Quill and I will be happy to try to answer them. If you just want to be told what to buy and don't mind being lied to about "explosive growth" and "opportunity of a lifetime", then subscribe to the TFM's "newsletters". But if you're a small-money, small-experience account, then trading mutual funds is a low-cost, low-effort way to gain market experience and to turn a decent profit, especially if you have a day job and can't be/don't want to be on a 'screen all day. EOD pricing means you won't be getting in as early as you could with ETFs or CEFs, nor out as soon. But the single EOD pricing of open-end mutual funds can also be a means of side-stepping a lot of the noise in the tape as traders in the regular session react to every rumor of a rumor and latest "hot news flash".

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