Looking to Get Started in ETF Trading?

James Mcinnes asked:

One of the newer features of trading is the Exchange Traded Funds, or ETF’s, has become an in-demand item in the trading world. Introduced in 1993, ETF’s have rapidly grown and are a definite favorite among some traders. ETF’s are very similar to mutual funds in that they provide an automatic diversification, but also offer you greater flexibility in your trade options. Here are some ways that trading with ETF’s could benefit you.

ETF’s Offer Greater Flexibility than Mutual Funds

One great advantage of an ETF is that it gives you a greater degree of flexibility than a mutual fund does. With a mutual fund, the prices remain the same throughout the day and cannot easily be traded. An ETF, however, gives you a great degree of trading power because:

o It can be traded any time of day

o Its value changes throughout the day like any stock

o It can be bought and sold like a stock

This allows you to have options to make quick profits like you can with the stock market. You can buy and sell it like a stock if you think a particular market sector is going to do well on a particular day.

ETF’s Provide Automatic Diversification

Buying ETF’s give you an automatic diversification. They are like mutual funds in that it covers a group of stocks and other types of investment – depending on what you buy. If you think that a particular sector will do well at a certain time or period of time, then you can buy into that sector with an ETF that covers it. This provides you with a greater margin of safety because, although all of the different stocks may not perform well, the sector as a whole will.

ETF’s Have Lower Costs

ETF’s do have costs on each trade that you make. This means that it could be rather costly to continuously trade them like you might do with some stock. The overall cost for maintenance fees, however, is lower than that of a mutual fund, and could be lower than buying and selling other forms of investments, depending on how you go about it.

An exchange-traded fund is also great on taxes, too. They offer you lower taxes than other forms, including index funds, and allow you to trade your ETF for the stock that the ETF represents. This reduces your taxes and enables you to not need to pay taxes until they are sold.

ETF’s Provide A Wide Variety

ETF’s now provide you with a large variety of options. Initially, the ETF’s only dealt with the stock market, but now it has expanded to include the bond market. You can also specify types of stock that you would like, such as large or small caps, or you can choose according to industry – like energy, technology, gold, and more. If you want to go country specific, such as Japan, or Germany, the UK, or others, you can also go that route, too.

Other options include the various Stock markets and enable you to get the broad benefits of the market as a whole. You can get ETF’s for the S&P 500, called SPDRs, or the NASDAQ, called QQQQ, Diamonds (DIA) for the Dow Jones, and more. By buying ETF’s this way, you do not lose out if a particular sector goes bad, because you have the whole stock market to balance out your potential losses.

for more information on how to invest in stocks visit the “I?Trade Options” website

Nellie

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