What You Need to Know About ETF’s

Since Jeff is traveling, I’m providing the weekly ETF update.

    ~Renae

Over the last several weeks we have tried to highlight some important aspects of ETF trading.  Each week has emphasized a different principle.  Taken together, the points below are a handy guide for ETF trading.  Each point has a link providing more detail.

• Anyone putting money at risk in financial markets needs a system.
• Whatever your system, you need to test it before you use it.
• Why technical analysis is useful for ETF trading.
• Those following a disciplined investment method and avoiding common traps are more likely to capture important market moves.
• If you are confident in your method, you can ride out market adversity.
• Buying a commodity ETF provides diversification without requiring expertise in specific stocks.
• While the fundamentals of foreign stocks can be difficult to analyze, an ETF trading method can offer participation in multi-national markets.
• Exit rules are different when dealing with an ETF because it is viewed as a portfolio, rather than a group of individual trades.
• Choose position size based upon what you can afford to risk, not what you want to gain.
• Focusing on sectors contributes to overall market feel.

ETF Sector Update

We have been using our own system to illustrate the various ideas.  This week was interesting, with a number of position changes.  Jeff will comment more upon his return.