When part of your investments are in funds and ETF, it is easy to become over-allocated in one or more sectors. This article points out the importance of understanding the makeup of the funds and ETFs that you invest in.

Reader S. V. raises an interesting question:

I am working on scenarios to trade the contra-ultra indexes like SDS to take advantage of either a combo spread (selling puts and buying call) or another method to take advantage of price movements while reducing risk. Any thoughts?

My latest trade, taken yesterday, is geting some traction. Here's my trading plan, and what I did today to kick the trade into high gear.

Reacting to your P+L is counterproducive and perhaps even detrimental. Here's how to view it usefully. Originally posted May 21, 2008.

In this post I describe the easiest and most effective way to keep a trading journal. I use this device (doesn't matter which brand) all the time!

Showing readers how I know when to ring the register. The example on May 22, and the logic.

Article last week about how to handle the inevitable losses in a great career.

A trader needs to know when and how to get aggressive. I explain my method here.

I've made adjustments to my trading the last few days. More short term (day trades) and tighter stops...

On Tuesday, WisdomTree launched the WisdomTree U.S. Current Income Fund (NYSE Arca: USY), an actively managed money market exchange-traded fund. USY is the first actual money market ETF to hit the U.S. market - Canada and Europe already have such funds trading.

I was impressed by today’s stock market session, especially when it came to leading stocks, tech stocks, and even more specifically semiconductor stocks. It was amazing to get a rally in such high-tech group of stocks. What made today’s rally even better was that volume increased on the Nasdaq and was above the 50 day volume average for the fifth time in the past few weeks.

Investors around the country are looking for a safe way to invest their money while the market appears to be more volatile than ever. Interest rates are being cut, inflation is going up, and everyone’s money is worth less. While the stock market is feeling the hit of these negative events, many commodities are seeing record prices.

Don Dion, the publisher of the Fidelity Independent Adviser family of newsletters, pointed out the PowerShares FTSE RAFI Industrials Sector ETF (PRFN) as a potential safe haven for during this turbulent market. Not everyone has the time or the understanding of the markets to make wise investment decisions and this might be the answer for those people.

You probably have until June before the herd enters the markets enmasse and the stock indexes zoom up into the stratosphere on speculative buying. A few guidelinies for making investments when the markets are scraping the bottom and revving up to make a recovery.

http://www.tradingaddiction.blogspot.com/

Down $196