Effective ETF Trading System Hints For Beginners
As you get going in ETF trading you are going to find that there are a lot of strategies, systems, and methods. The method, strategy or system that is best, will be the one that works for you. An ETF trading system may be very effective for one person, but not for another. The effective trading system will be one that matches your personal style, your skills, and your ETF goals. To find that system you will need to work through a few to find the one that is the best fit for you.
Website that offer one system or one strategy are not effective for many people. They are also not a cost effective way to learn ETF trading. The websites which offer training, materials, books, and information about all of the strategies, systems, and methods that make up ETF trading will give you a holistic view of what is available. This websites also usually offer forums and chat rooms for beginners to ask questions and gain valuable information from successful ETF traders.
When a person is just starting to participate in ETF trading they will be starting out slow. The first couple of years spent in ETF training are the learning curve that most successful traders say is average. This will be an opportunity to make a plan on how to try on different strategies and systems without committing a major amount of resources to any particular one.
There are a few steps that one can take to ensure that they have a safety net when moving through the learning curve. One is to set a stop-loss and stick to it. By setting a stop-loss, a person is not going to lose more than they expect. The ETF moves in fifteen second increments during the trading day. A person can lose a lot of gains in that amount of time if they are using the wrong system or strategy for them.
Setting buy and sell points and/or setting "take profit" prices will also give you an added level of safety. Having a safety net in place will be of tremendous assistance when a person is first learning the intricacies of ETF trading and still trying on strategies, methods, and systems. A safety net acts as a life vest. Until you feel like you can dive in and swim in the deep end of the pool, keep a safety vest on. Even a little vest will add some level of protection and keep you from drowning.
It may take some digging, but if you look you will find that each of the ETF trading systems has a breakdown that provides information about their risk, how hard they are to use, the parameters to set, and other information that will help to analyze that system. The ratings may be low risk (I haven't seen any), medium low to medium, high risk, and well there are systems beyond high risk, I just don't go there.
Any system that has trend following in some part of it is a good way to learn the structure of ETF trading and make effective use of the trends that are happening in a sector. Many new traders start with an ETFA (Exponential Moving Average) system. This system is a medium low to medium risk, easy to use system that basically is about trend following. The trader sets parameters for fast EMAs and slow EMAs and when the lines cross, you move. The system is most effective with RTH, SMH, SPY (long only), XLE, XLF, and TLT.
It is always good to start tracking a system before trading using the system. In this way you can see how effective it is on a consistent basis. When trading, there will be many opportunities for gain that come around, the system that connects you to those gains on the most consistent basis will be the correct system for you. - 23223
Website that offer one system or one strategy are not effective for many people. They are also not a cost effective way to learn ETF trading. The websites which offer training, materials, books, and information about all of the strategies, systems, and methods that make up ETF trading will give you a holistic view of what is available. This websites also usually offer forums and chat rooms for beginners to ask questions and gain valuable information from successful ETF traders.
When a person is just starting to participate in ETF trading they will be starting out slow. The first couple of years spent in ETF training are the learning curve that most successful traders say is average. This will be an opportunity to make a plan on how to try on different strategies and systems without committing a major amount of resources to any particular one.
There are a few steps that one can take to ensure that they have a safety net when moving through the learning curve. One is to set a stop-loss and stick to it. By setting a stop-loss, a person is not going to lose more than they expect. The ETF moves in fifteen second increments during the trading day. A person can lose a lot of gains in that amount of time if they are using the wrong system or strategy for them.
Setting buy and sell points and/or setting "take profit" prices will also give you an added level of safety. Having a safety net in place will be of tremendous assistance when a person is first learning the intricacies of ETF trading and still trying on strategies, methods, and systems. A safety net acts as a life vest. Until you feel like you can dive in and swim in the deep end of the pool, keep a safety vest on. Even a little vest will add some level of protection and keep you from drowning.
It may take some digging, but if you look you will find that each of the ETF trading systems has a breakdown that provides information about their risk, how hard they are to use, the parameters to set, and other information that will help to analyze that system. The ratings may be low risk (I haven't seen any), medium low to medium, high risk, and well there are systems beyond high risk, I just don't go there.
Any system that has trend following in some part of it is a good way to learn the structure of ETF trading and make effective use of the trends that are happening in a sector. Many new traders start with an ETFA (Exponential Moving Average) system. This system is a medium low to medium risk, easy to use system that basically is about trend following. The trader sets parameters for fast EMAs and slow EMAs and when the lines cross, you move. The system is most effective with RTH, SMH, SPY (long only), XLE, XLF, and TLT.
It is always good to start tracking a system before trading using the system. In this way you can see how effective it is on a consistent basis. When trading, there will be many opportunities for gain that come around, the system that connects you to those gains on the most consistent basis will be the correct system for you. - 23223
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posted by X - Men @ 2:03 AM
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