My ETF Trading
part 1
Details of my best trading strategies
with etf securities
I started to develop ETF Trading strategies during first years of my stock trading education. It was almost 10 years ago. There were not so many exchange traded funds available back then. The most popular exchange traded fund were index etfs like QQQQ and SPY. Sector trading strategies using sector etfs were not so widely used like today.
I choose exchange traded funds as my main trading vehicle as I liked how they acted in accordance to technical analysis I used for stock chart reading.I’ve used this strategy for etf securities trading for several years already, and this is my core exchange traded funds trading strategy. I personally trade several trading strategies in my portfolio as I try to use best strategy for every stock market situation. Based on my experience, trading strategies for ETFs could generate nice regular income. This kind of trading system isn’t as volatile as classic stock trading systems, but there is huge liquidity. So a trader can easily increase its position size.
Key points fo best etf performance
This trading strategy is based on these basic premises:
This strategy is only part of my broad trading system based on my business plan. Every trader should have its own
business plan
which defined a lot of basics of his trading career. Stock and funds trading should be considered as a business, otherwise it could lead to poor results. It is also wise to have more then one
trading strategy
in your stock trading system. Why ? The stock market is not always in one mode only. It has bullish periods,
range trading
periods and bearish periods. It is good to have tools to be able to recognize actual
stock market situation.
And then apply correct trading strategy for exchange traded funds or stocks. It is not wise to buy pullbacks in bear market situation, I think .
The first step for this strategy is to prepare a
list of ETF stocks
I want to monitor regularly. Then, I divide these exchange traded funds into
these groups:
- broad market funds
- market sector funds
- bond funds
- commodity funds
- international funds
- other exchange traded funds
The
next part
describes details about how I defined exchange traded funds in these groups for my
trading strategy.
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