I have been trading ETFs
since they their inception. I found them to be very helpful in enhancing investment performance. Compared to mutual fund, they are more liquid, transparent and less costly in fee & expense structures. If you don't want to take individual stock risks but want to gain exposure to the broad market, then ETF is an ideal instrument for you.
since they their inception. I found them to be very helpful in enhancing investment performance. Compared to mutual fund, they are more liquid, transparent and less costly in fee & expense structures. If you don't want to take individual stock risks but want to gain exposure to the broad market, then ETF is an ideal instrument for you. I use top down approach in trading ETFs. First, I use technical analysis to identify the trend of the broad market, so that I can determine whether I shall go long or short; then, I scan for the most relative strength or weakness subjects compared to the major indexes; then based on my risk appetite and view confidence. I selects the ETFs with the appropriate leverage to add to my portfolio. Quite often, my strategy involves combining various ETFs to maximize my return/risk profile. Complicated option strategies are used either as a hedge or an outright position taking. The timing of entry and exit is critical, especially with leveraged portfolios.
For the convenience of my reader, I am compiling some of the most liquid and widely traded ETFs below.
x1 Bull: DIA (Dow), SPY (S&P500), QQQQ (Nasdaq 100), IWM (Russel 2000), EEM (Emerging market), XLF (Financial), KRE (Regional banking), XLE (Energy), IYR (Real Estate),XHB (Home builder), SMH (Semi conductor), RTH (Retail), IBB (Nasdaq biotech), OIH (Oil services) FXI (China), EWH (Hongkong), EWT (Taiwan), EWZ (Brazil), EWJ (Japan), VXX (VIX), IVW (S&P growth)
x2 Bull: DDM (Dow), SSO (S&P 500), QLD (Nasdaq 100), UYG (Financial), URE (Real estate), DIG (Oil and gas), UYM (Basic material)
x3 Bull: BGU (Large cap), TNA (Small cap), FAS (Financial), ERX (Energy), CZM (China), EDC (Emerging market)
x2 Bear: DXD (Dow), SDS (S&P 500), QID (Nasdaq 100), TWM (Russel 2000), SKF (financial), SRS (Real estate), TBT (20yr+ Treasury), FXP (China), EEV (Emerging market)
x3 Bear: BGZ (Dow), SPXU (S&P 500), FAZ (Financial), TZA ( Small cap), CZI (China), EDZ (Emerging market)
Metals: XME (Metal and mining), GLD (Gold), UGL (Gold x2), GDX (Gold miner) SLV (Silver), SLX (Steel)
2 comments:
consent!
I also traded UCO before the mkt tanked.
One common question for all part time investors is how to trade during working hours. E.g., when I get busy, I don't get to check the mkt the entire day...and most often, my long positions would get hit during various meetings...cry to death!!! How did you manage that?
Good entry point is more than half the success. After that, set stoploss, this should contained downside risk.
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