Leveraged ETF Trading and the Fall 2010 Swing Trading College (TNA, SDS, FAZ)

There are a number of attractions for both new and returning students to the TradingMarkets Swing Trading College: TPS (Time Price Scale-In) for Stocks and a new version of our most popular swing trading strategy are two that come immediately to mind.

But one of the reasons many traders and investors will be enrolling (and re-enrolling) this fall can be expressed in three words:

Leveraged ETF Trading.

Once available as a stand-alone course, the quantified leveraged ETF trading strategies developed by Larry Connors and his team at Connors Research are now available only to traders and investors enrolled in the Swing Trading College. And if you trade – or want to learn how to trade – leveraged ETFs like the ^SDS^ and the ^FAZ^, the high probability leveraged ETF trading strategies available only in the Swing Trading College alone may be worth the price of tuition.

TNA Chart

Above: An oversold extreme in the Direxion Small Cap Bull 3x Shares led to this opportunity for a short term trade to the upside.

Our research, going back to inception in virtually all widely-traded leveraged ETFs, shows that the high probability trading strategy of “buying the selling” is a quantified way for short term

traders to consistently and successfully trade leveraged ETFs. The excellent test results we have seen when applying high probability trading strategies to leveraged ETFs show that in the short

term, buying extremely oversold markets outperforms buying extremely overbought markets.

SDS Chart

Above: A full, four-unit scale in helped high probability traders swing trading the ProShares ultraShort S&P 500 ETF lower the cost basis for this trade.

There is more good news for traders and investors interested in using quantified trading strategies to swing trade leveraged ETFs:
many of the same tools and tactics that apply to high probability trading with non-leveraged ETFs – from the 2-period RSI (Relative Strength Index) to “the science of scaling-in” – also apply to leveraged ETFs. At the end of the day, high probability trading is high probability trading. Buying the selling and selling the buying works – regardless of whether the market traded is a stock or a 3x leveraged exchange-traded fund.

That said, there are important differences in how those tools and tactics are used when it comes to leveraged ETFs. It may be a cliche to say that leverage is a double-edge sword. But there is

nothing cliched about learning the right way to use leverage – especially when it comes to using leveraged exchange-traded funds to take advantage of short term, swing trading opportunities in the


And this is where Larry Connors and the Fall 2010 Swing Trading College comes in.

Prophet Chart

Above: Oversold extremes in leveraged sector-based exchange-traded funds like the Direxion Financial Bear 3x Shares ETF can also provide short term trading opportunities based on high probability swing trading principles.

here today
to get your copy of Larry’s most recent webinar introducing the Fall Semester of the 2010 Swing Trading College.
Larry’s presentation includes an overview the 14-week swing trading course, as well as an explanation of how high probability trading strategies can potentially improve your success as a swing trader. If you are ready to take your trading to the next level, then click the link above to get your copy of the Fall 2010 Swing Trading College webinar by Larry Connors today. Classes start on Tuesday, September 7.

David Penn is Editor in Chief at TradingMarkets.com.