Characteristics Needed For Successful ETF Trend Trading

Jacob J. L. Salinger asked:

ETF Trend Trading & Investing can be an intimidating process. ? Many of us would prefer to leave the “heavy lifting” to someone we perceive as a professional and check in occasionally to see how we are doing.? This approach can be profitable depending on the personalities involved.?

More likely, though, we are missing opportunities in the market on a daily basis.?

If you have the characteristics of a successful trader, taking the reins and participating in “etf trend trading” may be a better option.? Let’s quickly take a look at what the characteristics of a successful trader are so that you can begin to discover what style of investing may be right for you.

First of all, you need to be willing to follow the system of “etf trend trading”.?

A person who is too engaged, who wants to jump at every perceived opportunity and who cannot rein in their impulse to click their mouse is probably not going to find success.?

Another characteristic of successful traders is preparedness.? Having all your ducks in a row will make the process quick and smooth.? If you are well prepared, there is no need to spend hours at your computer puzzling out your next move.

Another point which corresponds to one’s ability to stay the course is emotional detachment.?

Thinking with your head and not your heart and seeing the long term, “big picture” benefits of a system will make you successful.? Along with this, successful traders have the courage of their conviction.?

With “etf trend trading”, you must know that you deserve prosperity and stay the course to that goal.? Finally, successful traders have had successful mentors.?

Look for someone who has?done well in the market?who can coach you along the way and encourage you to continue on track.

Characteristics needed for successful “etf trend trading” are part personality, certainly, but many of the needed skills can be learned if one is willing to apply themselves.?

Do your research carefully before you dive in to the market.? Seek advice from those you know to be successful.?

Finally, look to people with proven systems, like the folks over at trendtradingadvisor.info.? If you think you may have what it takes to trade successfully, now is the time to evaluate your options and start your journey to the prosperity you deserve.

Juanita

Understanding the Basics of Gold ETF Trading For the Next Decade

Steve Crown asked:

Gold ETF Trading is one way to leverage your portfolio and take advantage of the gold market. The acronym ETF stands for exchange traded funds and provides the investor a means to constantly receiving income regardless of the economy. Further, the commodity of gold has proven historically reliable regardless of the economy.

The first area to more fully understand when becoming engaged in gold ETF trading is the gold mining stocks index. Mining stocks with respect to gold are viewed by many as volatile and risky: Many investors are finding gold mining stocks with regard to the index are below long term investment levels. Since the ETF proves to be a shorter term investment vehicle than that of a mutual fund housing your gold inside this type of financial vehicle is the best way to minimize any market volatility.

The next area to consider with respect to Gold ETF trading is the gold stocks index not to be confused with the prior that being the gold mining stocks index. If you’ve been charting gold activity you may have noticed over the last decade or so that the gold stocks index is indeed testing long term levels of support. Normally when gold stocks close below the trend line the longer term investors find themselves with cash until new opportunities with respect to trading gold on a short or long term basis come into play.

In analyzing performance certainly within the past five years particularly between the years 2006 to 2008 gold stocks have underperformed. When you are watching performance this type of thing is not generally encouraging to gold ETF trading investors as the objective should be to see higher prices. However everything must be taken into consideration if you are to be a true analyst with respect to investing and gold stocks are reaching levels where rallies have since the time been put into place. This means gold stocks may be underperforming historically as far as price but close to proper support levels.

The chart to stay apprised when becoming involved in Gold ETF Trading is the daily HUI chart. The chart allows the gold ETF investor to modify his or her entry and exit strategies. In example, one month the HUI showed a lower high and lower low which is critical. Sometimes lower prices for gold are ways to panic the selling market to increase their rate of sell off. Rallies are good ways to get things stabilized.

Even if you find gold stocks have been selling in a down position, gold historically holds its own: it still provides the investor with higher highs and higher lows in a discouraging economy. Gold ETF further still holds its ground with respect to long term support.

Generally even if gold indexes and gold stocks are over extended with regard to sales in the end gold produces leverage. It may be preferable to see a higher price however if things happen where this is not the scenario, gold continues to move and therefore trading in gold has always been historically secure regardless of economy.

Franklin

Trading International Exchange Traded Funds



Trading International Exchange Traded Funds

Trading International Exchange Traded Funds

Author: NobleTrading

Investing money in well performing world economies, foreign markets and companies can be good strategy; especially when investments in local markets and companies are not offering good returns. More over many investors want to diversify and/or want to internationalize their portfolio. International ETFs are for excellent investment options for these investors.

International Exchange Traded Funds (ETFs) are exchanged traded funds which track foreign stock exchanges. They are traded on local stock exchanges and are traded just like stocks – through a brokerage firm. International ETF firm buy and hold stocks traded in the exchange(s) they are tracking to make a small replica of that stock exchange. They then issues shares of the ETF through local exchanges like NYSE, Nasdaq and AMEX. The price of ETF shares goes up with rise in tracking foreign stock market and goes down when market drops.

International ETFs holds many advantages.

  1. They let investors to invest their money in growing markets.
  2. They help investors to invest in emerging markets which are otherwise hard to access or are costly.
  3. They hold all the benefits of ETFs like no tracking error, low expense ratio, increased liquidity, and tax benefits.
  4. They are easy-to-trade instruments; they can be intraday traded and short-traded. Unlike mutual funds, which disclose value once a day, one can get real-time value of ETF shares and total ETF portfolio value.
  5. They suit almost every trading and investing styles; they can be day traded, swing traded or long-term traded.

There are now a range of international ETFs to choose from. One can choose ETFs for a single stock market, a single country, a region, a currency specific or a sector specific. Some most popular international ETFs include iShares from Barclays, InvescoPowerShares international ETFs and State Street International SPRDs. The number and types of international ETFs are also growing and you can also find some leveraged and smart ETFs among them; which can offer above average return for higher risk taken.

Before investing in international ETFs, it is necessary to analysis of the fund portfolio. Funds which track illiquid and small foreign exchanges and sectors are not much suitable for investors who want to minimize their portfolio risks. The investor should also have an understanding of the fundamentals and growing scope of the region, country, market and companies concerned.

Article Source: http://www.articlesbase.com/investing-articles/trading-international-exchange-traded-funds-839548.html

About the Author:

NobleTrading is an Online ETF Trading Broker offering many flexible plans and advantages for traders and investors. Join the NobleTrading online trading blog subscribers and increase your trading knowledge.


ETF Trend Trading – How to Consistently Beat the Pants of the S&P Average Every Day

Robert R Stanton asked:

The people who are just stepping into the forum of trading are nowadays abandoning the age old forex trading techniques and stock trading. They are nowadays more interested in ETF trend trading. This article aims at explaining how ETF trading can be of real help is minimizing your losses everyday and ensure a win -win situation for you.

In a trading there are drawdown or rather sudden and abrupt losses involved. If you do nothing to shield yourself from these losses then this business will simply ruin you and get your whole world crumbling around you. For example let us assume that when you started trading your account consisted of $20,000.

After 3 consecutive losses you simply come down to a value of $10,000, which happens to be 50% of what you had. So the loss incurred was 50%. Now if I ask you that how much profit you need to make in order to get started, I think your answer will be 50%. This is nothing shocking, because this would be the reply of most people.

But in order to be in the business and to ensure that you are extracting a good lot you must make a profit of 100%. In order to get back to even you cannot afford to compromise a value less than that. Your new base would significantly grow low as you suffer these losses and so it is necessary that you come back with a high percentage of profit to be in a stable position. Now here comes the role of ETF trend trading.

Professional managers and people who are into this business of trading would never risk more than 2% for every trade. In this way they can handle 10 consecutive losses which would result them a total loss of 20% and not more than that. And there is less to recover in this way.

This is quite low compared to the earlier situation. If anyone has told you that more risk is equal to more money then please break that world and come out, more risk is more risk and nothing beyond that. ETF trend trading does a great job in teaching you handle these risks. It works excellently by reducing your chances of losses. And if you can reduce your chances of loss then what else but a good win deal is waiting for you.

The biggest battle is the battle of survival in this field as most traders do not manage to survive. Since ETF trend trading can make one survive this drawdown, naturally it turns into something that would go a long way.

If you can go for an ETF trend trading course then nothing can be more helpful than this. It would give you a brief idea on the government policies, economic scenario of the country, the supply and demands. It would help you identify trends and would equip you in such a way that you are able to make most of the moving costs.

So learn more about it and stop suffering by losing heavily over trades.

Stephanie

ETF Trend Trading System Storm Alert!

Brette Robbie R Lambert asked:

Without question no subject in the market today that is getting more investors excited or has a greater larger potential for investors than ETF Trend Trading. ETF benefits are multiple especially for passive traders. They offer: Low costs, broad diversification, the ability to buy and sell on an intraday basis, the increasing number of highly specialized ETF offerings, the ability to profit from a unique trending market sector…just to name a few.

For example should you decide to quickly get a piece of the fortunes of regional banks or pharmaceutical companies, there’s an ETF for you. If you want to get in on the real estate market..BAM! you again have numerous ETFs available too. What if you only want to invest in the top performing retail companies within the U.S. but not internationally. You’ll easily find ETFs here as well.

Of course you may see an emerging, reversing trend in a specific sector. Trading long or short is possible with ETFs! You can profit regardless of which direction the underlying stock moves.

Unlike Mutual Funds, ETFs offer the flexibility and can be bought or sold all day long (not that you want to do that of course).

Investors are abandoning the age old fundamental approach for real time technical analysis. Traders are embracing this financial vehicle so quickly that the traditional mutual fund managers are wising up.

The current number of available exchange-traded funds or ETFs and the quantity of assets supporting those ETF’s will only continue to grow in number. Consequently, an important consideration for the future growth of the industry is the corresponding need for traders of these products to really understand how to execute trades within such a broad range.

What’s needed is a clear logical and simple system that confidently tells you:

1. Exactly which market is trending down, up,or sideways, and…
2. Which indexes are obviously participating the most aggressively within that market trend (if any).

Becoming an informed investor means that you understand what makes each ETF unique, how they work, and which basket of funds are on target to help you attain your financial goals.

Starting Out With ETF Trading:

I hate to make a blatant pitch here but I will say that regardless of whether you’re just starting out or a seasoned professional trader, ETF Trend Trading (link below) will offer you all the tools and tutoring you need to understand this dynamic field by:

1. Giving you a foundational approach to understanding which types of ETFs and how many too look at.
2. Exploring the most up to date ETF trading strategies that work today.

ETF Trend Trading focuses it’s strategy on executing trades on the most trending ETFs. More importantly adhering to a simple trading system that emphatically emphasizes trading what you see, not what you think or feel. is how the pros see consistent returns.

The ETF mentorship program run by former financial adviser referred to as “Big A”. He and his team offer a logical, step-by-step process that shows even the most novice investors a systematic way to quickly but safely master ETFs.

Victor

ETF Trading Strategies – The Secrets to a Successful Trade

Dany Capello asked:

There has been many books written and a lot has been said about ETF trading in general. There are also a number of books that talk about ETF trading strategies but there is probably no one complete book that describes ETF trading from A to Z. The knowledge however you get from these books can help you become a better ETF trader by helping you hone your ETF trading strategies. You also get to learn a lot especially from the mistakes from others.

If you want to come up with a good solid and winning ETF trading strategies you need to first have a bit of experience in the ETF market. It will also do a great deal of good if you have some one or somebody who can teach you the about ETF trading strategies. The basis of a good ETF trading strategy is that it takes many things including good information into consideration.

Learning from other people’s experience is good because it will save you a lot of money, and time when it comes to developing a winning strategy. The best way to learn is from stories of other people’s success as well as their mistakes. Your job is to go and use what they tell you to develop your own unique trading style which can be adapted to the every changing ETF trading market.

The ETF market is never the same its always changing and its really hard to predict even for seasoned traders who have spent their life in the market. The trends however will tell you a little about what you can expect and how you should tailor your ETF trading strategies to make maximum profit. So in a way your strategy needs to be able to quickly be adjusted to the changing market.

People who have been ETF traders for a few years begin to have their own style of trading. Some styles my seem a bit unique while others will appear to look great. However these styles are based on the trader’s own unique experiences and knowledge. Yes in the ETF market you can experience extreme lows and extreme highs but this is something even the pros experience, you however need to make a profit in the long run in order to be successful.

The ETF trading strategies you come up with needs to be designed in a way that makes it so flexible that you can would it to your taste and requirements. You also need to be able to accomplish this as soon as possible before the market takes another turn.

People who have traded and have made alto of money often fail later on because they were not able to keep up with the changing market. So you also need to find a way to compensate for that. The market will change as it has always changed but your sense of the market should keep you ahead of the game. So come up with a strategy that you can really use and mould to your advantage.

Harvey

Profitable ETF Trading Strategies – Developing the Daily Trading Plan

Ken Long asked:

Trading the markets on a daily basis with short term strategies places a premium on efficiently and effectively developing a comprehensive daily trading plan.

Short term trading can be a very rewarding part of an overall trading and investment strategy. Without a sound and comprehensive plan, though, there are just too many ways to go astray for the novice trader.

Each trader should develop their own methods for daily preparation, suited to their style and personality. It can be a challenge though for the novice trader to get started with this daunting but essential task.

Here is a simple way that a trader might go about developing a daily trading plan, proceeding from the top down.

Prepare your notes in 3 sections: market, intermediate, tactical (short term) and go through a set of structured questions like these:

What is the market condition, what is it doing, does it give you a bias for tomorrow?

What is the intermediate condition? Consider using indicators like Williams%R, portfolio exposure, and ADX condition.

Are there any swing trades that have stories going on that carry over from the previous day?

What is the short term condition/ideas of interest? consider: gap statistics, SPY Pivot Points, any carry over positions from yesterday, any patterns fired? These could include patterns like overreaction, channelling, triple screen, 5 days down and washout.

Are there any maximum pain candidates to be aware of? Are there any continuation patterns that I am especially interested in?

Once you answer those questions, you should have anywhere from 5 to 15 tradeable ideas as soon as the market opens.

At the open you should consider the gap, then the 5 min Opening Range, examine the price with respect to the pivot point numbers.

After about 15 minutes into the session, you could look at, in order: indexes, ETF2 positions, and your developed interest list to see where the strength and weaknesses are. This quick scan will suggest more targets.

A simpler alternative is to have a narrowed focus on a stable of reliable targets, and do an abbreviated version of the above scan by considering the market and intermediate conditions but then focus on the state of each of your reliables for trading ideas.

All interest list members should be framed in the usual way, so you have a decision support framework in place before the market opens. You will then know where you can buy upon evidence of tactical momentum fearlessly.

You will also have a playbook of situational trades, just waiting for the market to show you what it is doing.

If you need some guidance on how to develop your daily short term trading plan, these ideas may help to get you started.

Diane

ETF Trading Strategies Explored – Be the First to Know

Mark Brian asked:

Strengthening portfolios, by trading ETFs is a common occurrence among investors today. Portfolios are packed with bonds, stocks, representatives of a stock collection or commodities from a specific sector. There are financial ETFs, bond ETFs, oil ETFs, and also gold ETFs. Using ETF trading strategies to further the growth of your investments might be just what you are looking for. The following information describes various strategies used among investors of Exchange Trade Funds.

Placing Bets on Sectors – Betting on entire sectors at once isn’t uncommon today. Many investors prefer to place bets on stocks of a specific kind instead. Let’s say an investor wanted to keep an eye on the euro, whereas his comrade prefers to follow all currency ETFs. This is an example of one investor focusing on an individual stock, while the other monitors a whole sector.

Options for Bond Betting – Bets are able to be made on anything that can be tracked by an index. Tracking of this kind can be used for segments of a yield curve, corporate bond indices, or Treasuries with inflation protection. There is a relationship between the maturity time and the interest rate on borrowed money in a give currency.

The Strategy of Pairs Trading – An algorithmic trading strategy is the basis for pairs trading today. This strategy is built around models which decide on the amount of spread, based on data mining and historical analysis.

The term hedging is used when referring to stocks and its derivatives that have pairs trading going on between them. When one stock goes up and the other goes down, the one that went up is sold. After selling the stock that traded up, the stock that went down is purchased. This swap is done with the thought that since one went down, it must be getting ready to go back up. Trade pairs may include companies such as Wal-Mart and Target, Dell and Hewlett-Packard, or Pepsi and Coca-Cola.

Industry Emphasis – The weight of portfolios can be shifted towards specific industries by buying ETFs within the same industry or sector base. Having a broad-based ETF and then buying a health-care ETF will bring about health care industry exposure to your portfolio.

Predicting the Market – Being able to predict what will happen on the market, with ETFs, enables investors to buy or sell with confidence. Timing the market is the strategy of deciding to either buy or sell stock by also trying to predict what the future of the market will be. Predictions are based on either conditions within the economy or from the result of a fundamental analysis. This strategy is based on an aggregate market prediction instead of a specific financial interest.

Making sure you understand these ETF trading strategies described above will make you a more knowledgeable investor.

Clyde