Posted on 29 August 2011.
It takes expert guidance to run a managed futures ETF. Most of us are good at the jobs we do. That hardly means that we can drop the tools of our chosen trade, and pick up those of another at the drop of a hat. In particular, we seldom have access to the sort of financial crystal ball that would enable us successfully to play the futures market. It is a data-intensive round-the-clock job to keep an eye on all of the world markets, and track the nearly imperceptible signals that trigger a wave of immense profits.
That is why hiring an expert is such a good idea. Participating in a managed futures ETF offers numerous advantages over going it alone. The most important advantage of such a strategy is the fact that the fund managers have already grown past their rookie mistakes. They are masters of their trade, and will steadily make money year after year.
Another factor to consider is that a managed futures ETF operates with a large pool of capital. This bestows two distinct benefits to the investor who entrusts their money to such a fund. While an individual investor can only afford to make one or two futures trades at a time, a fund can be actively engaged in hundreds, even thousands, of contracts at any given time. This spreads out the risk for an investor to a considerable degree. One or two bad moves will not wipe out a lifetime of accumulated capital. The winners will eventually make up for the occasional losing position.
In addition, the size of the fund means that the positions it takes can actually move the market on its own, in some cases. This gives the expert managers of the fund an additional tool that allows them to squeeze an extra penny or two out of many investments. These additional profits can add up to a considerable sum over time, and they are simply not possible for individual traders. Hire the best brains money can buy, and let them put your money to work with a managed futures ETF.
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