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Take advantage of the pull back

     Last night in preparation for today I was speaking with a student and fellow investor. We talked about her portfolio and how I felt she was over weight in the financial sector. We also talked about the possibility of a pull back and what actions she could take. I suggested that she buy the FAZ to protect her investments, this would be about the simpliest way to hedge against a loss and still be able to keep her current portfolio. I should tell you she has more than doubled her portfolio this year and with a little help last year had some very small losses, also her trading stile is as a long term trader so selling her position doesn't make much since for her, so protecting them is very important. This is a nice easy trade because if her stocks go up she will lose a little in the faz but if we do have a pull back and I believe we will she will earn money on the faz. I no the pundits don't like this etf because it is 3x's the inverse but I think that's the beauty of it. I you have 10000 investment in the financial sector you can protect yourself by investing roughly 3333. This is definely the upside to these type of inverse funds.

Trade with Confidence

Steve