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For my benefit. I still can't trade my ST account because the transfer process is not complete. But, I would like to gain some insight from your experience. Isn't it correct to assume that, when comparing the IFT activity with TSP.gov to the ability to buy and sell at Scottrade, we can protect our assets better, quicker, and be able to go into safe-mode (capital protection) with less risk?
What about the tempo or speed of the activity, even with the three day settlement rule requirement?
Even with the market risks and fluctuations, I have observed that when we consider doing an IFT with the TSP funds before COB, we are always trying to determine where to shift the funds to get the best gains. Many times we enter a stock fund like C, S, or I, at the 20 DMA or the 50 DMA, because we know that traders and buy programs at the big firms probably will buy at those cross-points; and when they do, the Big ships tend to lift or sink all smaller boats like ours.
Isn't it easier and safer to trade by waiting for a confirmation of the trend and then using the ultra (2x gain or loss) offered by the ultra proshare ETFs. We can get a better gain on the long side by waiting for the trend to be in place and then buy the long side the equivalent funds.
We can achieve better gains at less risk than other investors that risk the downside at inflection points such as a change of direction in the markets at the 20DMA, 50DMA, or other early signals of the market being overbought or oversold. In theory, by using the Ultra ETFs (with 2x gain/loss) we reduce the risk of loss by gaining a decent or equivalent profit after the trend is established. Right now, I would be brainstorming the idea whether (or not) to enter the S&P500 at this near 20DMA, but we don't know if the market will drop further. However, by using the 2x leverage offered by the ultra pro-shares, we can wait till the upside is established and still obtain a decent profit at a lesser risk. Am I right or not? Any and all opinions are welcome. I need to get a handle on this thing. This discussion also could help others. Thanks in advance.
