Financial Freedom With ETF Trading?

Thomas Leroy asked:

An ETF or Exchange-traded Fund is another form of an investment portfolio made up of many investments that trade like stocks. It holds an assortment of securities that are intended to track the performance of an index and unlike many mutual funds; it can be bought and sold rapidly working in response to market movements similar to stocks or bonds that are traded throughout the day, mainly on major stock market exchanges. The American stock exchange is where ETF’s are mainly found to be traded on.

There is no minimum investment and investors can sell short or buy on margin investing little or as much as they want. There are features and strategies that allow traders and investors to increase returns which mutual funds don’t offer, where it can no more than sell or purchase at the mutual fund’s closing price at the end of the day.? The continuity of pricing throughout the day allows a trader to take advantage and react to the market condition on a basis that is intraday.

An investor can trade ETF’s? in cash throughout the days’ regular trading hours and even after hours on ECNs which is an advantage of being immune to market timing unlike open-end mutual funds where investors have to quickly trade in and out gaining from minor price variances to profit. With a closed-end fund or ETF it is different being that by the trading on the market the underlying assets of these funds are not affected in any way.

Profits can be made by the difference in share value of the underlying assets of the Exchange Traded Funds and trading of those’s shares. When the demand is low ETF shares will trade at a discount and when it is high at a premium to net asset value.

In conclusion ETF can be a good investment when held over time.


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.