Q: What is High Yield Trader?
A: High Yield Trader is an investment service that tells you when to buy and sell your high yield mutual fund(s) and/or ETFs so that you can profit from increases in their value and benefit from their high dividend rates while not suffering significant losses when their prices are falling.
Q: What are the returns for High Yield Trader? How much money can I make?
A: How much you make is only limited by the size of your investment. An investor starting with a $100,000 investment buying and selling the Janus High Yield mutual fund (JAHYX) using our signals would now have $250,000 – a 150% total return over 10 years! High Yield Trader's annualized return is 7.3% (as of November 2009). For our complete returns history please see our Results.
Q: How many trades/signals does High Yield Trader issue? How active is it?
A: High Yield Trader issues 1-2 signals per month on average. The long-term historical average is 13 trades per year. The High Yield Trader historical signal frequency can be seen on our Results page.
Q: What mutual fund(s) or ETF(s) should I trade?
A: We have tested nearly the entire universe of high yield mutual funds and ETFs with our High Yield Trader model and have validated over 50 mutual funds for use with High Yield Trader. We have provided historical returns for all of them to help you make your choice. ,
Q: What does “High Yield” mean?
A: “High Yield” refers to an asset class of bonds that pays a dividend rate above U.S. treasuries and investment grade bonds, typically from 4%-9%. These are bonds issued by corporations and occasionally other entities to fund their business activities. High yield bonds, also referred to as “junk” bonds, are considered more speculative than U.S. government issued bonds or investment grade bonds issued by leading companies such as IBM or GE.
Q: Don’t high yield / junk bonds have a higher rate of default?
A: Yes, high yield bonds have a historical default rate of 4-5%. However High Yield Trader does not advocate investing in individual bonds but rather recommends bond funds where investors benefit from the skills of professional bond portfolio managers that buy bond insurance and may hold anywhere from 100-400 bonds in their portfolios.
Q: High Yield Trader offers many funds / ETFs, how do I decide which to trade?
A: 50 mutual fund choices and 4 ETFs so that investors that have a relationship with a particular mutual fund company or have limited investment choices (such as in a 401k or 403b account) will still be able to find a fund(s) accessible to them. Many brokers publish lists of mutual funds that may be traded for no commission fees, please check with your broker.
Q: Can I use High Yield Trader in my retirement account?
A: If you have an IRA account, you should be able to invest in any fund or ETF on our approved list -- mutual fund choices may be limited by your broker. If you have a 401k, 403b, pension or other retirement account you will need to check the investment options offered by your plan provider.
Q: Will my mutual fund company charge me for buying and selling too frequently?
A: Each mutual fund company has different policies regarding frequent trading. However many offer more than one high yield fund choice so you may be able to alternate or rotate funds to avoid frequent trading penalties.
Q: How many funds or ETFs should I buy when using High Yield Trader?
A: Because our High Yield Trader service focuses exclusively on mutual funds and ETFs you can use our service quite successfully buying and selling one fund. You may choose to use more than one fund (particularly if you choose the most volatile funds) however diversification is achieved within each fund itself (funds hold from 100-400 individual bonds). Furthermore, High Yield Trader provides downside protection by issuing timely sell signals.
Q: What is the minimum investment to use High Yield Trader?
A: You may use our system with investments of any size. Minimum investment thresholds for mutual funds typically range from $1,000-$5,000 -- please check with your fund issuer or broker. This information may also be found on Yahoo! Finance under "purchase info".
Q: How volatile is High Yield Trader?
A: High Yield Trader has extremely low volatility when compared to any buy and hold investment and most timing services. Our maximum drawdown for our model fund, Janus High Yield J (JAHYX), is only 3.18%!
Q: What is unique about the High Yield Trader investment service?
A: High Yield Trader is SIMPLE. There is only one signal to follow and you can choose from over 50 different funds and 4 ETFs. For details on how to use High Yield Trader please see “Getting Started”.
Q: Is High Yield Trader compensated for the mutual funds or ETFs it recommends?
A: Never!
Q: Do any of High Yield Trader’s employees invest using High Yield Trader?
A: Yes! Employees and partners of High Yield Trader have been enjoying the benefits of the High Yield Trader system for many years and continue to do so. Employees and partners may hold positions from our recommended lists at any time.
Q: Are there any "hidden" costs involved in a High Yield Trader subscription?
A: No, there are NO hidden costs whatsoever and High Yield Trader comes with the security of a NO HASSLE 30-DAY MONEY BACK GUARANTEE!
Q: How do I get started using High Yield Trader?
A: Getting Started is EASY. Just follow these simple steps.
Q: Does High Yield Trader have specific profit targets?
A: No. The old adage traders use is that you must “let your winners run.” Specific profit targets will, more often than not, limit your potential gains and we never want to do that!
Q: What downside protection does High Yield Trader have? Does it have Stop Losses?
A: High Yield Trader has built-in downside protection and issues timely sell signals when it is time to sell your high yield funds/ETFs. This has enabled our model to have a remarkably low maximum drawdown of 3.18% for our model fund (JAHYX)! When using one of our Recommended ETFs, if you choose to use stop losses you should set your stop loss at 6% -- This is the level used in the High Yield Trader model and you should use exactly the same level.
Q: How will I know when High Yield Trade issues a BUY or SELL signal?
A: The High Yield Trader model is updated daily, after 8pm CDT. If there is a new BUY or SELL signal Subscribers will receive an e-mail from High Yield Trader prior the market open the following day at the e-mail address provided when signing up for the High Yield Trader service. Subscribers may also login to their High Yield Trader account anytime to see that latest signal and recent past signals.
Q: Is it necessary to check my email during the day (i.e. during market hours)?
A: No, it is absolutely NOT necessary. No signals are issued during regular market hours.
Q: What percentage of my assets should I invest in High Yield Trader?
A: There is no specific amount that High Yield Trader recommends. For personalized investment advice we recommend you consult with a licensed professional investment advisor to provide investment advice tailored to your specific situation. You can contact MarketTrend Advisors for some personalized investment advice.
Q: How can I increase the probability of success on a High Yield Trader BUY signal?
A: Wait for a new BUY signal! Please see “Getting Started.”
Q: If I missed the BUY signal, should I still consider buying a high yield mutual fund/ETF?
A: You will need to make this decision on your own. A BUY signal may last anywhere from several days to several months (please see our historical High Yield Trader signal frequency). You many choose to “average in” over multiple days to enter a long position after High Yield Trader has already issued a BUY signal. Still the safest time to enter a new long position is when a new BUY signal is issued.
Q: When should orders be placed with my broker/dealer or online account?
A: Many subscribers opt to place their orders either in the evening or before the market opens in the morning, however you may place your orders anytime. You may trade ETFs in pre-market or after hours trading, however trading outside regular market hours offers lower liquidity and therefore entails additional risk. Also your broker may charge higher commissions for these trades. Mutual fund order cutoff times are usually 30-60 minutes before the market close -- you will need check with your broker or mutual fund company.
Q: Does High Yield Trader recommend using options or margin?
A: While you may use both with good success, they each involve an increased level of risk. The High Yield Trader model has not been tested using options and is not designed as an options trading strategy. Only experienced investors should consider the use of margin or options. We recommend that you seek the advice of a professional investment advisor to determine whether either is appropriate for your specific investment profile.
Q: Do subscribers influence the price movements of high yield bond funds or ETFs?
A: No, this is highly unlikely. Mutual funds issue new shares as demand increases and trade at the net asset value of their holdings. ETFs work in a similar fashion. While temporary price dislocations may occur in ETFs during periods of high market volatility, the ETFs on our recommended ETF list all have sufficient liquidity such that High Yield Trader subscribers are unlikely to significantly influence market prices.
Q: How does High Yield Trader avoid wash sales?
A: High Yield Trader does not explicitly avoid wash sales. If you are using High Yield Trader in a taxable account and are looking to repurchase a position within 30 days of a realized loss, we recommend that you purchase a different mutual fund or ETF.
Q: Is High Yield Trader difficult to manage?
A: No! High Yield Trader is SIMPLE. There is only one signal to follow and you can choose from over 50 different funds and 4 ETFs. For details on how to use High Yield Trader please see “Getting Started”.
Q: What is a high yield bond?
A: A high yield bond (also known as a "junk bond") is a corporate debt instrument rated BB or lower. Please see "Bond Ratings" on the Benefits page.
Q: Who is behind High Yield Trader? What are their qualifications?
A: High Yield Trader is owned by CG Strategies. CG Strategies’ partners have extensive experience at multiple Fortune 500 technology firms where they focused on economic and PC market forecasting and project management. Additionally, the partners of CG Strategies are currently partners in an independent SEC-registered investment advisory firm and another firm that also publishes investment newsletters.
If you have a question that we have not answered here please feel free to send an e-mail to support@highyieldtrader.com with your query.
We exclusively provide prompt e-mail support and will reply within one business day.
