How to trade ishares etf ?
List of etf funds for
etf trading strategies
I like to use ishares ETF in my ETF Trading strategy. Product list of this provider of exchange traded funds is huge. List of their exchange traded funds consists shares tradable in USA, in other markets in America , in Europe or in Asia. I prefer to trade most liquid markets so I select ETF funds traded on US stock exchanges for my ETF trading strategy.
How can trader use ishares ETF efectively for ETF Trading strategies ? There are several options that can be used for different kinds of stock market strategies.Short term day traders could use these exchange traded funds for intra day stock trading. Swing traders and position traders could develop very good short term stock market strategy for these exchange traded funds. Any ishares exchange traded fund could be also good stock to invest in some online stock market investment strategy for self directed investor.
Index etf shares for daytrading
Daytrader can use most liquid funds to daytrade these stocks. His selection should probably include only main index etf shares.The list of ETF shares for daytrading will include most liquid exchange traded funds. My personal selection will be:IWM ... Russell 2000 Index Fund
IVV ... S&P 500 Index Fund
Both these etf funds have enough liquidity for effective daytrading and also offer nice intraday moves which can be used for daytrading strategies. Here is intraday chart of IWM ishares ETF
Etf funds selection
for swing trading
and position trading
I prefer to be
swing trader and position trader.
My core ETF trading strategy is based on using technical analysis of stock charts.
My selection process to pick best exchange traded funds
for trade setup is based on relative strength. To utilize these ETF trading strategies I need to select and categorize funds.I created several categories in my list of ETF shares. Technology related etf funds Technology related etf funds should represent sectors of NASDAQ stock market. I like to compare shares in this list with broad NASDAQ composite index to identify which sector has most relative strength or relative weakness. List of ETF funds will be based on these tickers: IYW ... Dow Jones U.S. Technology Sector Index Fund
SOXX .. PHLX SOX Semiconductor Sector Index Fund
IGN ... S&P North American Technology-Multimedia Networking Index Fund
IGV .. S&P North American Technology-Software Index Fund
IBB ... Nasdaq Biotechnology Index Fund
Non-technology sector etf funds These shares represents more broad based sectors. These sectors should be compared with S&P500 stock market index. IYK ... Dow Jones U.S. Consumer Goods Sector Index Fund
IYC ... Dow Jones U.S. Consumer Services Sector Index Fund
IYE ... Dow Jones U.S. Energy Sector Index Fund
IYF ... Dow Jones U.S. Financial Sector Index Fund
IYH ... Dow Jones U.S. Healthcare Sector Index Fund
IYT ... Dow Jones Transportation Average Index Fund
IYJ ... Dow Jones U.S. Industrial Sector Index Fund
IYM ... Dow Jones U.S. Basic Materials Sector Index
IYZ ... Dow Jones U.S. Telecommunications Sector Index Fund
IDU ... iShares Dow Jones U.S. Utilities Sector Index Fund
IYR ... Dow Jones U.S. Real Estate Index Fund
How to picks best ETF funds for trade ?
I review situation with these exchange traded funds using
stock charts technical analysis.
I generate list of ETF I want to play on bull side and put it into my Bull ETF Watch List. The opposite is bear ETF watch list with etf picks I want to trade using short selling.I prepare picks for these lists using my
relative strength
analysis. Here is one example of such
sector based analysis.
When I went through list of ishares ETF I have noticed clear relative strength in utilities sector. As you can see on the charts below. So IDU is now in my bull etf watchlist and I am looking for possible trading setup.
The relative strength analysis of broad markets is also part of
my trading system
which should determine which part of market could offer better trading opportunities for bull trade or short sell trade. Comparing stock market indexes or their respective etf funds shares will do this job.And also global
stock market situation
should be taken into consideration as is always better to trade with prevailing
stock market trend
then against it. Your
money management rules
should be based also on this analysis.
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