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What price should you buy at? Well it does not really matter for investing. However, you do need to set a stop loss and profit target according to your risk tolerance.
MATCH YOUR RISK TOLLERANCE ON THE CHART TO THE RIGHT WITH THE ASSISETS LISTED BELOW
Then break the top 2 monthly performers into there sub groups. These are the actual ETF's we will buy.
BUY AT LEAST 5 (TEN BEING THE PRIME AMOUT) OF THE ETFS WITH THE BEST BUYING PRESSURE ON THE DAILY CHART WITH 2/3 COMING FROM THE LEADING MARKET
There are two good ways you can time your entries. Williams %R set to 3 or you can use the VIX whichever is easiest for you. Just look to go long when they are over sold territory. I personally use the VIX.
We then look for the best place to put our money. To do this we scan and sort by monthly performance the following
SPY US STOCKS
EFA NON US STOCKS DEVELOPED MARKETS
EEM NON US STOCKS
LQD CORPORATE BONDS
LOOK FOR THE MARKETS WITH THE MOST BUYING PRESSURE AND PICK THE TOP TWO I use FINVIZ.COM for this.
When we look to invest for ourselves, we need to realize we are competing against the smartest bankers and traders in the world. We don't have the millions they have to spend on analyst and soothsayers to tell us when and where to invest for our retirement. We must figure it out on our own. Or better yet just follow them. This is how we can follow them and grow our accounts ten-fold.
The first step in investing for wealth it to determine the direction of the market. I do this by looking at three market characteristics. The first is I want to see the SPY trading above its 12-month moving average. The second is the SPY needs to be out performing the DJU on a monthly basis. The third is I want to see a low or down trending volatility on the SPY. If I have all three, I am looking to buy at every dip in the market.