A Beginners Look At ETF Trend Trading
As a person who is just beginning to enter the world of ETF (Exchange-Traded Funds), you are going to hear many different types of trading discussed. ETF trend trading will probably be a term that will be a little confusing. Many people talk about this trending as though it is a separate type of trading that is not related to other types of trading. In some cases you will hear that by trend trading, you will be more successful with your trades.
When people begin to look at ETF trading they usually will read books, take some courses, and get information from successful traders. In all of this information there will be one theme that will make a trader successful. That is to do a technical analysis and historic data collection on the sector that is going to be traded. You do this to spot trends and patterns. When a trend starts, you jump in. When the trend reverses, you get out.
When people do a historical analysis of a sector before they begin trading, they may look at a specific block of time. Some people do an analysis on a three or five year period and note the different trending indicators in that period of time. But, what is a sector, has a significant gain or loss every seven years? If a person has not included those years in their analysis, they can miss an opportunity to make a significant gain in their portfolio.
It is very easy for a person to get caught up in the analytics of sectors when they are trying to make the most favorable trading decisions. In order to keep from being bogged down in the details and lose valuable time trading, it is a good idea to decide what type of ETF trend trading you are going to do as far as technical analysis and stick with it.
When a trend is analyzed that covers 1-3 years it is called a short term trend. Doing a short term trend analysis is effective is a person is working on a sector that introduces a product or makes a research discovery every one to three years. But, there are a lot more opportunities shown in that short term chart that one may miss if they have not done further research.
Long term trends cover a sector for a ten to thirty year period. Within that chart will be intermediate term trends that occur on a regular basis. Some sectors, especially financial products have more long term and intermediate trends than short-term trends in the market. By identifying the intermediate trends and using them in combination with short term trends a person has opened a whole new level of opportunities for making strategic trades and gains in their trading efforts.
When traders act on trends without having the background to know when to get in and when to get out, they can suffer losses. However, a person can use an intermediate trend in a sector to their advantage if they know that the same patter occurs every four years and what the buy and sell limits for that trend should be.
Many people who have a long term ETF are looking for steady growth in their ETF. While this is a very low risk ETF, if a person knows when it is going to reverse, they have an opportunity to save money by moving before the trend reverses. - 23211
When people begin to look at ETF trading they usually will read books, take some courses, and get information from successful traders. In all of this information there will be one theme that will make a trader successful. That is to do a technical analysis and historic data collection on the sector that is going to be traded. You do this to spot trends and patterns. When a trend starts, you jump in. When the trend reverses, you get out.
When people do a historical analysis of a sector before they begin trading, they may look at a specific block of time. Some people do an analysis on a three or five year period and note the different trending indicators in that period of time. But, what is a sector, has a significant gain or loss every seven years? If a person has not included those years in their analysis, they can miss an opportunity to make a significant gain in their portfolio.
It is very easy for a person to get caught up in the analytics of sectors when they are trying to make the most favorable trading decisions. In order to keep from being bogged down in the details and lose valuable time trading, it is a good idea to decide what type of ETF trend trading you are going to do as far as technical analysis and stick with it.
When a trend is analyzed that covers 1-3 years it is called a short term trend. Doing a short term trend analysis is effective is a person is working on a sector that introduces a product or makes a research discovery every one to three years. But, there are a lot more opportunities shown in that short term chart that one may miss if they have not done further research.
Long term trends cover a sector for a ten to thirty year period. Within that chart will be intermediate term trends that occur on a regular basis. Some sectors, especially financial products have more long term and intermediate trends than short-term trends in the market. By identifying the intermediate trends and using them in combination with short term trends a person has opened a whole new level of opportunities for making strategic trades and gains in their trading efforts.
When traders act on trends without having the background to know when to get in and when to get out, they can suffer losses. However, a person can use an intermediate trend in a sector to their advantage if they know that the same patter occurs every four years and what the buy and sell limits for that trend should be.
Many people who have a long term ETF are looking for steady growth in their ETF. While this is a very low risk ETF, if a person knows when it is going to reverse, they have an opportunity to save money by moving before the trend reverses. - 23211
About the Author:
Learn how it's very possible to make 6% per month in your investment accounts using etf trend trading! "Big A" is a recognized expert in the world of etf trend trading system and reveals trading and investment secrets that have been kept under wraps by hedge traders for years. Get his free report and webinar today!
posted by X - Men @ 12:37 AM
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