ETF Trading Signals Review – How They Taught Me a New Way to Invest

Aurel Radulescu asked:

I’ve been playing the stock market for a few years now. Like everyone, I’ve taken my share of losses, but I’ve also made more than I lost so I can’t complain. I’ve done hot stocks and trend following and traditional trading, but I never got involved in the ETF market until recently.

I like the idea of ETFs, because you can invest in an industry without committing to one company This presents a lower risk for the individual investor like me. Biotech is a great investment market, but a lot of new biotech issues don’t do especially well. When you invest in a biotech ETF, even if one issue doesn’t do well, you have other companies that make a profit and cover the loss on the company that loses money.

The problem with low risk investments is that they are usually low return. I can turn a quick profit on a hot stock if I time it right, but ETFs take longer and tie up your capital. You also have to pay the annual fee on ETFs because they are a mutual fund. They are cheaper to trade though, and you can usually buy in for less than with other investments.

I was thinking about buying some ETFs to add to my portfolio with my other long term investments. I started checking out websites that brokered ETFs and I came across ETF Trading Signals. ETF Trading Signals is a site that keeps track of the highest performing ETFs on the market. They even send alerts and give advice on the most profitable ETFs every month. I already keep track of hot stocks and this looked like a good idea.

You can make more than average on a low risk investment like ETFs with the right advice. ETF Trading Signals is right more often than they are wrong. Nothing is certain in the stock market, but so far I’m getting a better return on my ETFs than I expected to by following the tips and advice offered by this site.

This type of investment is not for everyone. I like to use a variety of strategies in my approach to the market. I invest a certain amount each month in each one. ETFs are more long term than hot stocks or trend following, but you can get your capital out when you need to, and by keeping tabs on the market you can make a better profit than you might expect.

On the up side, so far I haven’t taken any serious losses with my ETF investments. I didn’t really expect to since the reason for getting into the ETF market was the low risk and relatively low investment of capital. I have made more profits than I initially expected to by following the advice offered by ETF Trading Signals. Hot stocks can make more, but I’ve also had more losses in hot stocks. The risk is a lot higher for hot stocks and trend following than it is for ETFs.

If you are considering getting into the ETF market, I strongly suggest you subscribe to ETF Trading Signals. If you’re trying to get rich quick, it probably won’t happen this way, but if you are looking for a low risk investment with reasonable returns, the advice on this site can help you maximize your profits.

Chris

ETF Trend Trading – Top 3 FAQ’s Answered

Robert R Stanton asked:

ETF trend trading equips you to trade live in the trenches and for that you don’t need any experience. More and more first time traders are benefiting from real time systems and they don’t need any special knowledge or hard earned experience to taste success. With a one year mentorship, you can really do any type of trading on earth whether it is futures, commodities, options or in the forex markets online.

The system does not take very long enabling you to follow every day as the site owner allows all his students to keep track of what is being bought and sold. It is not only what is being bought and sold, but how the trading is being done in real time that really matters. But to answer and clear several misconceptions as well as frequently asked questions, you need to read a little further. If you go through the ETF trend trading review, you would find it hands-on and upfront.

Do I have to risk my family relationship?

The first top FAQ that is common is that the system can work on anything that produces a chart whether it is commodities, futures or forex trading. And it is not about trading 10 full hours a day and losing your health in the process and impairing your relationship with your family. To clear common perceptions, this is not anything to do with gambling, real estate, MLM, mail order or buying and selling.

Can I trade long or short terms?

ETF trend trading systems do not require the trader to have any kind of experience and all you need to do is to compartmentalize the system separately and follow it blindly. You can’t do margin accounts with IRA’s and 401k’s and you can also benefit from inverse ETF’s for selling in the market. You can trade long or short terms and it is a great advantage to perk up your retirement accounts with the system.

Can I start off with a minimum amount like $5000?

And if you are wondering if you need loads of capital to enter ETF trend trading, you are mistaken. You can start off with less than $5000, but when you are using the system, there are some basic parameters that you need to follow. Doing with less than $5000 can enhance the risk that the system is not equipped to cover. As soon as you are totally confident, you can easily trade the entire IRA amount and make some extra $200 to $500 each month.

Knowing the answers to these frequently asked questions can be useful for you when you trade in trends and if you go through the ETF trend trading review you will find many satisfied traders. They post their experiences at forums for your benefit and their posts are upfront and reliable as they have made money using the ETF trend trading system.

Clyde

Anyone have anything good/bad to say about QLD and/or UYG ETFs (exchange traded funds)? ?

adamunch asked:

Anyone have anything good/bad to say about QLD and/or UYG ETFs (exchange traded funds)? I am about to embark into the trading world and received some advise from a broker friend to buy into these two particular ETFs. I am still kind of learning all about ETFs in general, but have already made my decision to definitely go with them compared to stocks or mutual funds, based on my research. So now I am just trying to figure out where to plunk my money. I am high risk and willing to wait this out several years, perhaps even 5+. Also, I plan to use scottrade which is only $7/share and seems to have virtually no other fees, not even an account transfer, inactivity fee, or account withdrawal/termination, which is rare. Sorry for the long question, I know there are tons of stock/trading gurus out there who can share some pearls of wisdom about this in general, and if you specifically have any knowledge of these two ETFs, even better. Thanks in advance!

Brooke

Profitable ETF Trading Strategies – Appreciating Anchors

Ken Long asked:

The Nobel prize winning work of Kahneman and Tversky featured an extensive examination of the biases we routinely commit which drive our thinking away from the purely rational economic man theorized by traditional economics.

One of the more important biases they examined was the phenomenon of anchoring. We anchor when we place a higher value or attach more meaning to a price than is warranted by facts. We see that for prices which act differently near round numbers which seem to have an almost magnetic effect. Price action near round numbers is different than that of normal price, and with no better explanation than the effect of psychology.

Among the anchors that I pay attention to are the 52 week high and low, the 30 day high and low, and the 10 day high and low. Each of these price ranges can be thought of in terms of a trading range. By using a technical indicator like Williams %R or by indexing the range on a scale of 0-100, we can easily identify ranges where price can be considered overbought and oversold. It is in these ranges that anchoring seems to have an effect and which allow us to frame trades that have favorable reward:risk ratios.

The academic literature finds this anchoring effect with the 52 week high and low, but I haven’t found any scholarly papers on the 10 day range. The 30 day time period has been studied, but more from a momentum perspective than for potential anchoring bias. It actually has an inverse predictive quality (30 day strength predicts underperformance for the next 30 days)

I find that by simply using the 52 week range and the 10 day range and looking for the anchoring effect at extreme overbought and oversold I get plenty of short term trading opportunities for trades that last 1-3 days and which produce a respectable system quality number (as defined by Dr Van Tharp)

Review the Williams %R indicator or use Excel to establish an index range of 1-100 for the time period you are examining to get an edge in your trading.

Alfred

Profitable ETF Trading Strategies – Understanding ETF Volatility

Ken Long asked:

There are many different useful definitions of the concept of volatility. For the purposes of this essay I just want to consider volatility in a non-technical way, and that is as the amount of variation in returns around the mean, or the average.
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In any bundle of returns from a trading system, you will always be able to calculate the average return. If most of the returns are tightly clustered around the average you would normally consider this to be predictable and reliable and low volatility. If individual returns were widely scattered above and below the average, you would normally consider this to be unreliable, risky and high volatility.
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That is the general sense of volatility that I want to consider in this essay.
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Now, I want to consider some lessons learned concerning volatility in exchange traded funds within your trading practice.
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ETFs are much less volatile than individual large cap stocks. This is true even for ETFs whose components holdings are all large cap stocks. Even the big, mature companies in the Dow Jones Industrial 30 index are much more volatile than the composite ETF that holds them. This is ETF trading symbol DIA.
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One of the things you get with lower volatility ETFs is the ability to engineer your position sizes more carefully because ETFs have less volatility and also tend to be more range bound. You are much more likely to have an extraordinary event in individual stock which includes the possibility of a runaway winner whereas ETFs are more likely to give you long regular cyclic waves of winners and losers.
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In addition to ETFs having lower average volatility, they also have a lower standard deviation in general than the individual stocks that make up the index. What this means is that the amount of surprise you are subject to is generally less on both the upside and downside. This is true regardless of whether you’re ETF is focusing on shore conservative companies were smaller cap growth.
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Of course we want to be careful in overestimating the usefulness of this information. We want to remember that even low volatility ETFs Possibility of large at first moves off of overnight surprise news.
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So ETFs may isolate you from some individual company risk but at the cost of giving up the opportunity for wildly explosive moves in your favor by surprise. For many traders, this is an excellent trade-off if you are looking for regular normal returns.?

Dale