by Christopher Alan Sweeney

Created on: February 11, 2010

Buying and selling stocks and consistently making money at it requires dispassionate discipline. Remember it isn’t about the company it’s about the money. This system will work with any stock. So if you like Disney fine play Disney. But to take the passion out of it and make more money you should look at high Beta ETFs.

Now open up two websites:

www.bloomberg.com www.stockcharts.com/charts/

We want a stock that has a high Beta. The Beta factor is an index number relative to the volatility of a stock. It used to be that a high Beta was anything over 1.5 which simply meant that if the Dow Jones Industrial Average went up 10% a 1.5 Beta stock went up 15%.

However in this modern era we can do much better than a Beta of 1.5. There are two exchange traded mutual funds (ETFs) which have a Beta of 3.0! Their symbols are TNA and TZA.

TNA is a managed portfolio of hyper growth stocks and derivatives designed to go up three times faster than the market. So if the market goes up 3% we can expect TNA to go up 9%. This is an example of a “Bull” fund. Bulls like to see the market go up. Don’t ask why Bulls like up and Bears like down. It doesn’t matter.

TZA is exactly the opposite. This portfolio makes money when the market goes down. In fact its short positions and derivatives go up in value three times faster than the market goes down. So if the market goes down 3% we can expect TZA to go up 9%. This is a “Bear” fund.

The only thing we have to decide is whether the market is more likely to go up or go down. All the rest is dictated by a discipline which will be fully explained by the time you finish this article.

Happily the days of each individual investor having to plot his own charts and doing point and figure analysis are over. All that technical analysis that people used to spend so much time doing is now done for you for free!

Now, if you were running a massive portfolio like a mutual fund you would have to do all the fundamental analysis yourself because your individual stock positions would be so large that you couldn’t easily get in and out of positions even in this era of high liquidity and enormous volume in individual shares.

But you’re not managing Billions of dollars. You are just trying to trade your own little account and make some money. Let’s say you have anywhere from $2,000 to $100,000 to trade with.  Your buys and sells won’t even be noticed in the market. You are

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