c) It creates wealth from the long-term broad market movement;
d) It allows different strategies that fit each investor's preference.
In addition, a mechanical system also helps manage the emotional side of investing that can make an investor jump in and out of the market just at the wrong time, a plus for new investors in particular.
Depending on the market conditions, a time interval between signals may be as short as a one day or as long as many months. In this way, the number of trading calls per year varies between 1 and 6. Using Exchange-Traded Funds (ETFs) or Mutual Funds as an investment vehicle, there is no need to buy/sell several stocks every time a change signal is issued. Strictly based on market data, Timing-Lab's Model will issue a Buy, a Sell or a Cash signal. Once a signal has been published, it remains valid until a different signal supersedes it. After the Nasdaq market closes, the system verifies if a new signal was triggered and we update the Web site by 9:00 pm ET that same day.
If a new signal is on, in addition to posting it on the "Current Signal" page, Timing-Lab also automatically sends e-mail notifications to all active subscribers. That way, you don't have to check the Site every day to ensure that you are not missing out on a new signal. We recommend subscribers provide their cell phone e-mail address as an alternate address when signing up. This will insure that even when you are away from the computer, you will get Timing-Lab signals.
When the model issues a Buy signal, we liquidate any short position and buy stocks through one of the index tracking investment vehicles at the market opening on the next trading day. When the signal becomes a Sell, we then liquidate any long position and take a short position, depending on the level of risk you are willing to take (see the System Section). The model generates Cash signals if a very high market volatility creates an extremely high risk situation. Cash signals are very rare as in general the associated risk of a volatile market can be mitigated by reducing the stock market overall exposition in the portfolio.
The investor may diversify his portfolio using investment instruments that match major market indices such as the Nasdaq-100, Russell 2000, S&P 500. These indices represent different segments of the stock market, offering a well diversified portfolio. In addition, to improve the portfolio diversification and total return, the investor may also use instruments that track international indices. They are tracked by various Exchange Traded Funds (ETFs) and mutual funds (see What to trade?).
The system performance will always depend on the strength of the market trends and as it is impossible to consistently foresee the next market big move, we consider participating in all system signals very important. For better transparency of our investment system results, our trading signals and returns are independently verified by the TimerTrac.com.
Note: TimerTrac.com is an independent organization that monitors and tracks market timing services.
