etfs & extreme etf investing with lady blue

ETFReady.com Presents….: 

ETFReady.com Presents…. Created by Gregory S. Davis GDavisCapital.com

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ETFs and Extreme ETF Investing with Lady Blue

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What is an ETF?

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What is an ETF? What is Extreme ETF Investing? &

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Let’s start with ETFs!!!

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Let’s start with ETFs!

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Let’s start with ETFs? An Exchange Traded Fund (ETF) in an investment that allows investors to buy a basket of different companies all at one time.

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What is Extreme ETF Investing? An Exchange Traded Fund (ETF) in an investment that allows investors to buy a basket of different companies all at one time. Extreme ETF Investing is a term we use at ETFReady.com to describe investing in leveraged ETFs. Leveraged ETFs amplify the returns an investor can receive.

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Why are we talking about this again?!?!?

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Lady Blue is thinking….I love wearing Nike sneakers and using my Apple iPAD Let’s say that Blue Lady would like to invest money in the companies she likes.

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Let’s say that Blue Lady would like to invest money in the companies she likes. She could buy shares of Nike and Apple separately. Shares Stock Price Nike (NKE) 1 $79.90 Lady Blue is thinking….I love wearing Nike sneakers and using my Apple iPAD

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Let’s say that Blue Lady would like to invest money in the companies she likes. She could buy shares of Nike and Apple separately. Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 Lady Blue is thinking….I love wearing Nike sneakers and using my Apple iPAD

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Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90! Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90 Lady Blue is thinking….I love wearing Nike sneakers and using my Apple iPAD

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Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90!! Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90 Lady Blue is thinking….I love wearing Nike sneakers and using my Apple iPAD

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Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90!!! Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90 Lady Blue is thinking….I love wearing Nike sneakers and using my Apple iPAD

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Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90!!!! Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90 Lady Blue is thinking….I love wearing Nike sneakers and using my Apple iPAD

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Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90!!!! That’s Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90 Lady Blue is thinking….I love wearing Nike sneakers and using my Apple iPAD

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Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90!!!! That’s expensive!!! Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90 Lady Blue is thinking….I love wearing Nike sneakers and using my Apple iPAD

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Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90!!!! That’s expensive!!! Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90 Lady Blue is thinking….I love wearing Nike sneakers and using my Apple iPAD

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What happens if Nike or Apple ever go into bankruptcy?

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I love wearing Nike sneakers and using my Apple Ipad. Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90!!!! That’s expensive!!! Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90

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I love wearing Nike sneakers and using my Apple Ipad. Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90!!!! That’s expensive!!! Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90

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I love wearing Nike sneakers and using my Apple Ipad. Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90!!!! That’s expensive!!! Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90

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I love wearing Nike sneakers and using my Apple Ipad. Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90!!!! That’s expensive!!! Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90 Lady Blue will only have her investment in Nike! Nike (NKE) 1 $79.90

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I love wearing Nike sneakers and using my Apple Ipad. Lady Blue’s total cost for just 1 share of Nike and Apple would be $448.90!!!! That’s expensive!!! Shares Stock Price Nike (NKE) 1 $79.90 Apple (AAPL) 1 $369.00 2 $448.90 Lady Blue will only have her investment in Nike! Nike (NKE) 1 $79.90

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So are you saying that an ETF would allow me to limit my risk?

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Yes, an ETF helps investors limit their risk by combining multiple companies into one investment.

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Yes, an ETF helps investors limit their risk by combining multiple companies into one investment.

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Yes, an ETF helps investors limit their risk by combining multiple companies into one investment.

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Yes, an ETF helps investors limit their risk by combining multiple companies into one investment. SPDRs S&P 500 Index ETF (SPY)

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Yes, an ETF helps investors limit their risk by combining multiple companies into one investment. SPDRs S&P 500 Index ETF (SPY) Nike

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Yes, an ETF helps investors limit their risk by combining multiple companies into one investment. SPDRs S&P 500 Index ETF (SPY) Nike Apple

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Yes, an ETF helps investors limit their risk by combining multiple companies into one investment. SPDRs S&P 500 Index ETF (SPY) Nike Apple 498 Other Companies

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Yes, an ETF helps investors limit their risk by combining multiple companies into one investment. SPDRs S&P 500 Index ETF (SPY) Nike Apple 498 Other Companies

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Yes, an ETF helps investors limit their risk by combining multiple companies into one investment. SPDRs S&P 500 Index ETF (SPY) Nike Apple 498 Other Companies

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The SPDRs S&P 500 Index contains 500 large companies including Nike and Apple! SPDRs S&P 500 Index ETF (SPY) Nike Apple 498 Other Companies

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The SPDRs S&P 500 Index contains 500 large companies including Nike and Apple! SPDRs S&P 500 Index ETF (SPY) $114.22 per share Nike Apple 498 Other Companies

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The SPDRs S&P 500 Index contains 500 large companies including Nike and Apple! SPDRs S&P 500 Index ETF (SPY) $114.22 per share Nike Apple 498 Other Companies

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The SPDRs S&P 500 Index contains 500 large companies including Nike and Apple! SPDRs S&P 500 Index ETF (SPY) $114.22 per share Nike Apple 498 Other Companies With one purchase you are able to gain exposure to 500 companies for $114.22 per share.

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Ok! I got it! An ETF allows me to invest in multiple companies all at once!!!

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Why didn’t you say that in the beginning?

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Why didn’t you say that in the beginning?

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Why didn’t you say that in the beginning? It’s like buying a variety package of snacks, but instead of chips and pretzels…..

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Why didn’t you say that in the beginning? It’s like buying a variety package of snacks, but instead of chips and pretzels….. I will actually be investing in several different companies.

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Weren’t you saying something about Extreme ETF Investing?

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What’s that all about?

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Extreme ETF investing is buying shares in leveraged ETFs that double

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Extreme ETF investing is buying shares in leveraged ETFs that double 2X

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Extreme ETF investing is buying shares in leveraged ETFs that double 2X 10% = 20%

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Extreme ETF investing is buying shares in leveraged ETFs that double or triple 2X

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Extreme ETF investing is buying shares in leveraged ETFs that double or triple 2X 3X

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Extreme ETF investing is buying shares in ETFs that double or triple an investors returns. 3X10% = 30%

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Extreme ETF investing is buying shares in leveraged ETFs that double or triple an investors returns. 2X 3X

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2X 3X What would happen if I bought 1 share of the SPDR S&P 500 Index ETF at $100 on August 1st

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2X 3X Then sold it on August 5 th at $110.

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SPDRS S&P 500 ETF (SPY) Sample Transaction

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SPDRS S&P 500 ETF (SPY) Sample Transaction Aug 1st Purchase Price $100

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SPDRS S&P 500 ETF (SPY) Sample Transaction Aug 1 st Aug 5th Purchase Price Sales Price $100 $110

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SPDRS S&P 500 ETF (SPY) Sample Transaction Aug 1 st Aug 5th Purchase Price Sales Price Profit $100 $110 $10

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SPDRS S&P 500 ETF (SPY) Sample Transaction Aug 1 st Aug 5th Purchase Price Sales Price Profit %Change $100 $110 $10 +10%

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SPDRS S&P 500 ETF (SPY) Sample Transaction Aug 1 st Aug 5th Purchase Price Sales Price Profit %Change $100 $110 $10 +10% Extreme Investing Results

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2X 3X SPDRS S&P 500 ETF (SPY) Sample Transaction Aug 1 st Aug 5th Purchase Price Sales Price Profit %Change $100 $110 $10 +10% An investment in an ETF that returns 2X the performance of the S&P 500 would have returned 20% Extreme Investing Results

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2X10% 3X SPDRS S&P 500 ETF (SPY) Sample Transaction Aug 1 st Aug 5th Purchase Price Sales Price Profit %Change $100 $110 $10 +10% An investment in an ETF that returns 2X the performance of the S&P 500 would have returned 20% Extreme Investing Results

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2X10% 3X SPDRS S&P 500 ETF (SPY) Sample Transaction Aug 1 st Aug 5th Purchase Price Sales Price Profit %Change $100 $110 $10 +10% An investment in an ETF that returns 2X the performance of the S&P 500 would have returned 20% Extreme Investing Results

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2X10% = 20% 3X SPDRS S&P 500 ETF (SPY) Sample Transaction Aug 1 st Aug 5th Purchase Price Sales Price Profit %Change $100 $110 $10 +10% An investment in an ETF that returns 2X the performance of the S&P 500 would have returned 20% Extreme Investing Results

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2X10% = 20% 3X SPDRS S&P 500 ETF (SPY) Sample Transaction Aug 1 st Aug 5th Purchase Price Sales Price Profit %Change $100 $110 $10 +10% An investment in an ETF that returns 2X the performance of the S&P 500 would have returned 20% An investment in an ETF that returns 3X the performance of the S&P 500 would have returned 30% Extreme Investing Results

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2X10% = 20% 3X 10% = 30% SPDRS S&P 500 ETF (SPY) Sample Transaction Aug 1 st Aug 5th Purchase Price Sales Price Profit %Change $100 $110 $10 +10% An investment in an ETF that returns 2X the performance of the S&P 500 would have returned 20% An investment in an ETF that returns 3X the performance of the S&P 500 would have returned 30% Extreme Investing Results

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So?

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For a risk taker like Kwame Brown who : Understands the stock market Has a large appetite for risk Is interested in maximizing returns for the ups and downs in the market Leveraged ETFs can turn a 10% up tick in the market into a 30% return. CAUTION: *** Investing in Bear (inverse) market ETFs can just as easily multiply losses when the market is rising. ***

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For a moderate risk taker like Zina James who : Has an existing portfolio of investments Has a moderate to aggressive appetite for risk Is interested in protecting her portfolio from large up or down swings in the stock market Leveraged ETFs can be a strategy used to take advantage of large up or down swings in the market .

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Did you say protection against down swings?

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That’s right Lady Blue…Bear market (Inverse) funds will go in the opposite direction of the rest of the market. On August 8, 2011 the Dow Jones Industrial Average dropped over 600 points or roughly -5.5% .

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That’s right Lady Blue…Bear market (Inverse) funds will go in the opposite direction of the rest of the market. On August 8, 2011 the Dow Jones Industrial Average dropped over 600 points or roughly -5.5% . Leveraged Bear Market ETFs like the: Direxion Daily Financial Bear 3X Shares (FAZ) increased in value 16.5% from $68.42 to $79.73.

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That’s right Lady Blue…Bear market (Inverse) funds will go in the opposite direction of the rest of the market. On August 8, 2011 the Dow Jones Industrial Average dropped over 600 points or roughly -5.5% . Leveraged Bear Market ETFs like the: Direxion Daily Financial Bear 3X Shares (FAZ) increased in value 16.5% from $68.42 to $79.73. Dow Jones Industrial Average Dropped -5.5%

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That’s right Lady Blue…Bear market (Inverse) funds will go in the opposite direction of the rest of the market. On August 8, 2011 the Dow Jones Industrial Average dropped over 600 points or roughly -5.5% . Leveraged Bear Market ETFs like the: Direxion Daily Financial Bear 3X Shares (FAZ) increased in value 16.5% from $68.42 to $79.73. Dow Jones Industrial Average Dropped -5.5% Direxion Daily Financial Bear 3X Shares (FAZ) Appreciated 16.5%

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That’s right Lady Blue…Bear market (Inverse) funds will go in the opposite direction of the rest of the market. On August 8, 2011 the Dow Jones Industrial Average dropped over 600 points or roughly -5.5% . Leveraged Bear Market ETFs like the: Direxion Daily Financial Bear 3X Shares (FAZ) increased in value 16.5% from $68.42 to $79.73. Dow Jones Industrial Average Dropped -5.5% Direxion Daily Financial Bear 3X Shares (FAZ) Appreciated 16.5% Direxion Daily Financial Bull 3X Shares (FAS) Dropped -19.8%

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Remember: Bear market funds go up in value when the stock market goes down . Dow Jones Industrial Average Dropped -5.5% Direxion Daily Financial Bear 3X Shares (FAZ) Appreciated 16.5%

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Bull market funds go up in value when the stock market goes up . Direxion Daily Financial Bull 3X Shares (FAS) decreased in value - 19.8% when the DJIA fell -5.5%. Dow Jones Industrial Average Dropped -5.5% Direxion Daily Financial Bear 3X Shares (FAZ) Appreciated 16.5% Direxion Daily Financial Bull 3X Shares (FAS) Dropped -19.8% Bear market funds go up in value when the stock market goes down .

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That’s a lot to remember!

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Make sure you never invest in anything you do not fully understand Never invest with money you need in less than 3-5 years Consult a financial representative if you are confused Understand the fees and transactions cost for any investment Disclaimer: The examples and investments presented here are purely for education purposes only. The investments presented here are not meant to be recommendations to buy or sell any security. Investing involves risks including the loss of your entire investment. Keys to Take Away!