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Trend Trading Strategies

ETF Trend Trading
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Trend trading is often compared and contrasted with day trading. Day traders are those who, typically, open and close a position in a stock the same trading session. That means that they try not to have any open positions in any stock at the close of the trading day. Day traders do sometimes hold for longer than that, but not much longer. On the other hand, it’s also true that there are short-term trend traders who may only hold an opened position for 15 to 30 minutes.

Trend trading strategies are fundamentally different from those of the day trader, however. While a day trader is trying to capitalize on volatility, the trend trader is trying to make non-volatile decisions. A trend trader may hold a position in a stock for weeks, months, or even a year or so. Trend traders are interested in liquidity, not volatility, for the most part.

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ETF Trend Trading

Trend Trading System – GMMA – EMA

ETF Trend Trading
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Getting involved in trend trading requires that you have discipline. You never want to trend trade–or in fact, do any kind of investing–on emotions. You don’t want to be a pawn of greed and fear like the masses of traders are. So, the way to take emotions out of the picture is to have a system in place that you know you will use before you begin trading.

One of the most often used trend trading systems out there is the GMMA, or the Guppy Multiple Moving Average. With the GMMA, the trader puts together two different groups of moving averages that have different time periods.

One of these groups is quite often used by traders with a short-term horizon. The number of days in their time horizon is, most of the time, one of the following: three, five, eight, 10, 12, or 15. For those who are involved with long-term investing as trend traders, they use time frames that consist of 30, 35, 40, 45, 50, or 60 days.

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ETF Trend Trading

Trend Trading – Profit From Trends

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Trend trading is an investment strategy that attempts to leverage momentum for financial gain. If a stock is trending upward, the trader enters into a long position on it, whereas if it’s trending downward the trader enters into a short position.

By “trend” we mean that the stock is moving in a particular direction without much back-and-forth (that is, up-and-down) movement. A trend trader is assuming that the stock in question is going to continue in its particular direction for a significant enough amount of time to make it worthwhile to invest in that momentum and profit from it.

What that significant time frame is all depends on the trader in question. In fact, that time frame can be as short as, say, 15 minutes or as long as a few months. But however long his chosen time horizon is, the trend trader will remain in the position he opened until he feels that the stock has reached its resistance and is about to reverse its trending. He then closes his position and takes profits.

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ETF Trend Trading

Low Risk Day Trading Strategies

ETF Trend Trading
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I’ll be honest, I don’t like gambling.  If I go to Vegas, I’d rather just skip the trip to the casino and go see shows or enjoy the great food.

That doesn’t mean I don’t like risk.  In the real world, I’m an entrepreneur and taking risks comes with the territory.  It doesn’t bother me.

However, I feel like there’s a big difference between me and people gambling in Vegas.  I’m able to stack the odds in my favor.  In Vegas, you close your eyes and hope lady fate is feeling generous that day.  To me that just seems stupid.  I’d rather not take risks where the result is completely up to chance.

So what does this have to do with day trading?  Everything.  Did you know that only 5% of people doing day trading ever make any money?  Most people lose money and some get completely wiped out when they try it.  Why?  They’re not stacking the odds in their favor and they’re taking big unnecessary risks.

Low Risk Day Trading Strategies

So if you’d like to join the land of the 5%, let me give you a few low risk day trading strategies you can use to make excellent returns (about 12.8% per month – that’ll more than quadruple your money in a year)
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ETF Trend Trading

ETF Trading – Benefits Of Exchange Traded Funds

ETF Trend Trading
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ETF Trading
Exchange Traded Funds (ETF) have recently become a great and frequently preferred alternative to the mutual fund.
What Is An Exchange Traded Fund?
ETFs are securities that are made up of many different stocks.  In that way, it’s quite similar to a mutual fund.  However, with and ETF, the stocks all have something in common (we’ll get to why that’s such a huge advantage in a bit).   It may be based on an index or an industry sector.  Those are the most common.  Sometimes, a fund may be based on the country the companies are tied to, but this isn’t common.
Like mutual funds, ETFs are diversified investments, so your risk of loss is roughly the same as it would be with mutual funds.  However, they hold several advantages over mutual funds.
Top 4 Benefits Of Exchange Traded Funds
1) Trending – Due to the fact that the stocks all have something in common, they tend to trend more predictably that regular stocks.  That means whether the trend goes up or down, you can make significant returns with very little effort (Learn how to make money from ETF Trend Trading).  This is the biggest advantage and the reason why you should consider adding ETFs to your portfolio.
2) Bought And Sold Like Stocks – And ETF is bought and sold just like a regular stock so stop-loss and limit orders are available.
3) Lower Fees – Another selling point of ETFs is their low fees, some as low as .2%.  Since the companies all have something in common, the amount spent on market analysis is significantly reduced.
4) Transparency – While a mutual fund only reports their holdings twice a year, an ETF can be viewed in real time any time you want.

ETF Trading

Exchange Traded Funds (ETF) have been gaining attention recently and are quickly becoming the  preferred alternative to mutual funds.

What Is An Exchange Traded Fund?

ETFs are securities that are made up of many different stocks.  In that way, it’s quite similar to a mutual fund.  However, with and ETF, the stocks all have something in common (we’ll get to why that’s such a huge advantage in a bit).   It may be based on an index or an industry sector.  Those are the most common.  Sometimes, a fund may be based on the country the companies are tied to, but this isn’t common.

Like mutual funds, ETFs are diversified investments, so your risk of loss is roughly the same as it would be with mutual funds.  However, they hold several advantages over mutual funds.

Top 4 Benefits Of Exchange Traded Funds [Read more...]

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ETF Trend Trading