Review of IBD’s Leaderboard
If you have been to any major financial website, more than likely you’ve seen the ads for IBD’s Leaderboard trading system. A subscription service where others do the time consuming research on finding what is best to invest in. They tell you. You do the trade.
While subscribing to proven services such as Leaderboard is the fastest way for anyone to make gains in the market when they first start, investors should still use caution. There are many similar services out there to choose from. You want to look for those that give you the biggest return and the smallest amount of time invested. Make sense?
In my review, I’m concerned with only two factors, returns and price. If the service is free, then 1% annually is good. However, if you’re paying two or three figure sums each month, you better be getting a good return for your investment.
Let me state that I love Investors Business Daily. When I first started out trading I subscribed to the paper for years, I still use their website today. I’ve read the owner’s books and recommend it all to anyone. What I am disappointed in, is their Leaderboard subscription service.
Recently I was on Facebook when I saw the ad below from Investor Business Daily advertising their popular Leaderboard Trading System. I’ve never tried the service, so I can’t comment on the friendliness, or how functional their website is, but when I saw the return, it prompted me to write this review.
IBD advertises a return that is 76% better than the S&P 500. This return comes to you at a cost of $839.40 per year to subscribe to Investor Business Daily’s Leaderboard (last time I checked).
While beating the S&P 500 is great (most mutual funds don’t do that) I’m going to show you a way you can get double that return and it won’t cost you a penny. Are you ready? Here’s the secret:
All you need do is buy and hold the ETF, SPXL. You will gain almost 400% more than the S&P 500.
Think about that. No need for a monthly subscription fee. No need to be making trades. Just buy and hold SPXL and gain 205.9% vs IBD’s Leaderboard’s 95.4%.
Don’t take my word for it, look up the facts yourself
The ad claims that the S&P was up 54.2% on March 31, 2015. The S&P closed at 2067.89 on that day. For the S&P 500 to advance 54.2% it would have to start at 1341.05. The closest close to that number occurs on May 18, 2011. The S&P 500 closed that day at 1340.68.
Now that we know the time period covered, let’s see what SPXL did.
SPXL was at $28.91 on May 18,2011 and close at $88.44 on March 31, 2015 for a gain of $205.9%
Comparing the cost of $839.40 per year to subscribe to Investor Business Daily’s Leaderboard for a 95.4% gain vs $0 annual cost to buy and hold SPXL for a 205.9% gain and it’s a no brainer.
The winner, and my choice between the two has to go to buying and holding SPXL as a better trading strategy in a bull market.
Leaderboard did not post any returns they have achieved in a bear market, and we obviously know that SPXL will go down three times faster than the S&P, I can’t comment on which strategy is best in a bear market, but I can say it won’t be SPXL.
Want Something That Did 10x Better Than SPXL?
I have a subscription service, similar to Leaderboard, that gave my subscribers a gain of 1,972% during the same time period at a yearly cost of only $200 (just 1/4 of IBD’s fee). You will need to make two trades a month on average. Not as easy as buying and holding SPXL but for 10x the gains, it’s worth it.
The best thing about my system, is that it works in BEAR markets and BULL markets, unlike SPXL. Look at the following chart. Here you will be able to compare past returns and the costs to get those returns.
Now that you have the facts, I’m sure you can now make a more informed decision as to which investment vehicle is best for you.
There is no guarantee that SPXL, my system, or Leaderboard service will do similar gains in the future. Click this link if you would like more info on my Index Trading System and how you can benefit at a lower cost.
To your success.