Quick Start Guide-ETF's - The Wizard

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QUICK START GUIDE: GETTING STARTED WITH ETF'S

TheWizardUniversity

QUICK START GUIDE INVESTING WITH ETF'S

In this guide, we'll show the four simple steps to investing in ETF's with The Wizard. It's important to us that you understand what to do before you learn how to do it, because once you learn this simple process, everything else will make sense. This guide is broken into 3 parts:

Part 1: What to do

A diagram of the simple, 3-step process to investing in ETF's with The Wizard.

Part 2: How to do it

An overview of The Wizard's features you'll need for investing in ETF's.

Part 3: How to learn

We want you to get up to speed as quickly as possible, so in this section, we've laid out the quickest, most optimal path to learning everything you need to get going now.

If you're ever unsure about what to do, just refer back to this guide, and let us show you the way!

TheWizardUniversity

QUICK START GUIDE INVESTING WITH ETF'S

What is an ETF?

An ETF is an exchange-traded fund. Unlike a stock, which represents a single company, an ETF is a fund that holds a number of stocks or bonds.

However, an ETF is not anything like a mutual fund. Like stocks, ETF's trade on various stock exchanges and can be bought or sold anytime, as much as you'd like.

ETF's are a "mini-market"

Because an ETF holds a number of stocks or bonds, they often act as proxies for entire countries, regions of the world, industrial sectors, commodities and more. Some examples include:

FXI - China's Xinhua 25 stock index SPY - S&P 500 stock index XLE - ETF for the Energy sector GLD - Gold ETF UUP - The U.S. Dollar

Why should I invest in ETF's?

There are a number of reasons to invest in ETF's, and only you can decide what's best for you. But some common reasons investors choose ETF's over stocks are:

? Exposure to international markets ? Ability to invest in non-stock securities, such as bonds, currencies and commodities, without

having to use leverage, which can be risky. ? Ability to invest in entire sectors and industries without using a lot of capital. ? Ability to invest even when the market is going down, using Inverse ETF's

TheWizardUniversity

QUICK START GUIDE INVESTING WITH ETF'S

Investing in a Down Market with Inverse ETF's

One of the great advantages of ETF's is that they offer a way for you to invest, even if the market is going down. Traditionally, the only way to invest in a down market has been to sell short. However, if you are not comfortable with selling short, or if you're investing for a retirement account (such as an IRA or 401k) in which short-selling is not permitted, Inverse ETF's offer a great option.

Inverse ETF's are ETF's that move in the opposite direction of their underlying assets. Here are some examples to illustrate:

SDS - Ultrashort S&P 500. When the S&P 500 goes down, this ETF goes up 2 times. DOG - Dow Jones 30 Short. When the Dow Jones Industrials go down, this ETF goes up. SEF - FInancial Sector Short. When the financial sector goes down, this ETF goes up.

Scanning for Inverse ETF's is easy. Simply check the "Inverse ETF's" category and run your scan.

TheWizardUniversity

QUICK START GUIDE INVESTING WITH ETF'S

Part 1: What to Do

A diagram of the simple, 3-step process to investing in ETF's with The Wizard.

TheWizardUniversity

QUICK START GUIDE INVESTING WITH ETF'S

The 3 Steps to Investing in ETF's with The Wizard

Step 1: CHECK FOR BUY OR SHORT-SELLING SIGNALS

Step 2: SELECT YOUR ETF'S

Step 3: PLACE YOUR ORDERS WITH YOUR BROKER

TheWizardUniversity

QUICK START GUIDE INVESTING WITH ETF'S

Part 2: How to Do It

An overview of The Wizard's features you'll need for investing in ETF's.

TheWizardUniversity

QUICK START GUIDE INVESTING WITH ETF'S

Step 1: CHECK FOR BUY OR SHORT-SELLING SIGNALS

ETF's Do Not Follow the Market Trend

Before we get started, you may have noticed that, unlike stocks, when you invest in ETF's with The Wizard, you do not need to check the Market Trend. Because each ETF is composed of a number of stocks or bonds, it is essentially its own miniature version of the market. When The Wizard issues a Buy or a Short-Sell Signal on any ETF, we have already taken the trend of that particular ETF into account. The Wizard will only issue a Buy Signal on an ETF whose trend is also a Buy. The Wizard will only issue a Short-Sell Signal on an ETF whose trend is also a Sell. In other words, the Trend is already baked in.

AS SHOWN HERE, THE MARKET TREND IS NOT REQUIRED FOR ETF'S

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