BestStockMarketTrading.com
    Follow tradingETFs on Twitter 
  Not a Theory... A ETF/Stock Trading Strategy You Can Actually Use Today!  

 
"Continuous improvement is better than delayed perfection."
-Mark Twain


Stock Market Bulls and Bears



"I try to learn from the past, but I plan for the future by focusing exclusively on the present. That's were the fun is."
-Donald Trump


Bookmark and Share


stock etf trading stategy and investment logo

Q: Has my website information improved your stock trading and investment experience significantly?

YES? Thanks for your donation to keep this web site FREE of charge to all investors.

 

trading ETFs logo Welcome to the Best ETF Stock Trading & Investment Strategy! 
"Are you getting the best investment advice?" ...well, maybe it's time to declare your investment independence.  Among the top reasons for self-directing one’s investments are greater control and flexibility. But there’s one other very good reason for becoming your own portfolio manager: "The potential for better performance".  

If your goal is to have a well diversified mix of assets, ETFs let you do this simply and cheaply. No need to trust anyone's stock picks either. Of course, you'll miss out on the stock-specific gains, but you'll also miss out on the stock-specific losses. For many investors, that's a worthwhile tradeoff.

Please note: this is a 100% free site and not a limited free trial offer!

  First, a few things you absolutely don't need when using my ETF stock trading tool and investment strategy...

Pay for my step-by-step portfolio management guidelines - no costly subscriptions, specialized software application or seminars to name a few. Because, plenty of stock trading decision resources are on the internet for free. I will show you how to get it and how to set it up.

Research Fundamentals - Leave the research of blue ship companies to the +4,000 stock market analysts working for many brokerages and investment banks. These experts do their homework and get the inside scoop on the prospects of the companies that they follow.

Technical Skills - no complex theories like Elliott wave, Ichimoku cloud, Bollinger bands, Fibonacci retracement, Donchian channels or technical indicators to identify head & shoulder, double bottom, breakouts and cup & handle.

Trading Time (Homework) - some experts recommend one hour of research for each stock per week.  But with my stock trading plan, it's just minutes each day to setup, maintain and control your stock trading portfolio.

Being driven By Emotion - emotions often cloud our decision-making and prevent us from acting in a rational manner. read the full article...   

Today's stock market snapshot...

   

US Equity & Currency

 

Here's what you will get!
 
...step-by-step guidelines, a plan, an active model portfolio and a strategy that generates great returns with low risk.
 
Here are the 12 steps to embark on a winning ETF trading and investment strategy:

  1. Trading Psychology - the 14 stages of investor emotions
  2. Trading Strategy - details the ETF stock trading model
  3. The Game Plan - basic ETF stock trading strategy fundamentals
  4. Trading ETFs - low cost index funds that trade like stocks
  5. Stock Chart - install free stock chart
  6. Asset Allocation - setup and fund your ETF stock portfolio
  7. Buy Order - limit and stop order entry points
  8. Sell Order - stop loss exit points
  9. Action Log - keep investment notes
  10. Profit Target - upside price movement
  11. Trading Homework - review ETF stock trading activity
  12. Active Model Portfolio - compare ETF stock trading action

Tip: use my strategy to back test first.  But better yet, create a portfolio (any free financial site e.g. Yahoo Finance) and paper trade using my step-by step instructions and investment guidelines. And when you get comfortable, open an account and reap the benefits of self-directing your investments. It's easy and you will appreciate to have taken your financial future into you own hands - I know, I did!

What's the catch?

No catch or hidden options ~ My ETF stock trading and investment strategy guidelines are free of charge. Why am I providing a free service? First of all, I wanted to document my trading plan, because I am maintaining 5+ portfolios, large and small.  To be consistent with my trading strategy, I needed to have a living document that is easy to maintain and easy to review. Well, what better way is there to put all together on a website. Now that it is done, I decided to publish it and share it with the world. If you have a comment or suggestion, just send me an email

Please read on... or checkout my active model portfolio

S&P 500 ~ big picture performance snapshot...

 
S&P 500 @ 1035 (10% correction) is now the support level

Are you ready to declare your ETF stock trading and investment independence?

YES? click here to start your step-by-step instructions.

NO? please read on... Managing your own money is an important responsibility that requires financial maturity and education. I suggest reading books by individuals that know about the truth of successful investing, instead of buying expensive subscriptions trading software - checkout my recommended reading list and then visits your public library and check them out. Becoming your own portfolio manager, if done right, should not become a daily chore that requires you to be in front of a computer 24/7. Once your portfolio’s allocation has been determined (with your risk tolerance and goals in mind), stick with it and periodically tweak it. Trust me, it's much like a growing a garden, you’ll need patience and discipline.

For me, stock trading comes down to three things - First, using simple technical analysis to boost profits. Second, protecting earnings and minimizing risk as much as possible. And last, managing trades from start to finish.  

The Best Online ETF Stock Market Trading and Investment Strategy - is all about momentum investing while it takes advantage of brief price swings in strongly trending Exchange Traded Funds (ETFs). Exchange-traded funds offer excellent growth potential without subjecting investors to the risk and unpredictability associated with owning a few individual stocks.

Stock Market Technical Indicators - my strategy's decision making process uses very specific settings of the Exponential Moving Average (EMA) and the Parabolic SAR indicator. These buy, hold and sell signals take the mental (emotional) aspect out of ETF trend trading decisions.

Risk Tolerance - it's the degree of uncertainty that an investor can handle in regard to a negative change in the value of his or her portfolio. My goal is to get you to sell when you should, instead of holding and hoping. I strongly believe that if you never know when you’ll get out, that you don’t really have a plan. And without a plan, you’ll never be able to outperform as an investor.

Asset Allocation - the trading strategy divides your portfolio into specific equity allocations of swing trades (3 to 10 day holding period) and investments (long positions).

Bull vs. Bear Markets - In a bull market everybody makes money, but in a bear market it’s more difficult especially for long-term investments. In 2008, most long-term investors have lost many years of paper profits.  My trading strategy is trying to reverse the long-term investment trend and concentrate on capital preservation.

Tip of the day - Don’t follow the crowd. When everyone else seems to be jumping into an investment, that might be just the right time to stay on the sidelines. Stay ahead of the crowd. Get in early and get out when the crowd is buying. This is the same as buy low, sell high. 

...excellent trading and investment ideas are offered by our sponsors ~ please check them out!

US & International ETF Performance Year-To-Date

Still Undecided?

Ask yourself: "Should I buy stocks on the way down?" ...well gee, if a stock was a good buy at $45 a share, it’s bound to be a better buy at $35 a share. And when it sinks to $25, you could be very sorry you went along for the ride.

Let’s Review My ETF Stock Trading and Investment Strategy one more time.

My stock trading strategy is so simple, that you don’t have to read through a 300-page workbook and or listen and view dozens of videos.  Yes, a beginning trader needs more time to learn trading terminology which we have provided on our website. However, those who have done some trading will find it easy to execute my strategy. And when in doubt, you can follow my model portfolio to review my trading activities.

We provide specific guidelines for entry and exit points, asset allocation and portfolio diversification.  Plus a detailed game plan which includes three basic trading fundamentals: First, using simple analysis to boost profits; Second, protecting earnings and preserving capital (minimizing risk); And last, managing trades from start to finish.

Always remember, without a trading plan, you’ll never be able to outperform as an investor.  My information is free and it will get you trading with a proven stock trading plan - a sound trading strategy - in no time at all. 

ETF Performance by Sector Year-To-Date Returns

Exchange Traded Funds(ETFs) vs. Mutual Funds

Are you a mutual funds investor?

Our trading strategy does not invests in Mutual Funds, because we like to control our investments like stock equities. Here is a comparison: (source: ETFGuide.com)

Are mutual funds better than ETFs?

Not necessarily. Each financial product has its strengths and weaknesses. Any fair comparison should be done in the context of not just performance, but tax efficiency, fees/total ownership costs, risks, structural differences of each product and if the fund objectives match the financial objective(s) of a particular investor. Always refer to a prospectus for detailed information before investing.

Are mutual funds less risky to own than exchange traded funds?

Not necessarily. ETFs, like mutual funds, come in a variety of shapes and sizes. The level of risk in an ETF or mutual fund is often determined by the portfolio holdings within the fund. Both mutual funds and ETFs can track a variety of indexes and sectors. Some indexes or sectors will be more risky and volatile than others. However, there's no substantiated research to prove that ETFs are any more or less risky compared to mutual funds.

How are mutual funds and ETFs different?

ETFs offer investors intraday liquidity and are bought and sold with a brokerage account. Mutual funds are priced at the end of the day and cannot be bought or sold during regular trading hours. Also, ETFs are traded on a stock exchange, whereas mutual funds are bought and sold directly with the fund company or through a mutual fund trading platform.

How does the cost of mutual funds compare to ETFs?

Generally, investors buying or selling ETFs will pay a transaction commission to a broker, whereas investors buying or selling no-load mutual funds directly from a fund company pay none. However, some brokers impose a commission to buy or sell no-load mutual funds. Other so-called "no transaction fee" mutual funds don't charge a commission to buy, but often carry higher expense ratios. Also, ETFs do not impose back end redemption charges like many mutual funds.

Ultimately, any fair cost analysis between ETFs and mutual funds should look at the total spectrum of expenses - not just the transaction fee to acquire the ETF or mutual fund. Pay close attention to the expense ratio, portfolio turnover, and tax efficiency of a mutual fund versus an ETF. Always refer to a prospectus for detailed information before investing. 

Advanced Exchange Traded Funds Strategies

Hedging Strategy - ETFs are effective hedging tools for managing risk. For example, investors can guard against over concentrated equity positions by using ETFs as single stock substitutes. This hedging technique can reduce risk and volatility by letting stockholders diversify away from large equity positions to the companies they own or work at. Also, inverse performing or short ETFs allow investors to hedge against a market decline.

Leverage Strategy - Like individual stocks, ETFs can be leveraged with margin. Margin is borrowing money from a broker to buy securities and involves considerable risk. Minimum maintenance requirements are enforced by FINRA (Financial Industry Regulatory Authority), the NYSE and by individual brokerage firms. While margin investing can be profitable for investors correct about the direction of their holdings, the interest charges or borrowing costs can deteriorate returns.

Sector Rotation  Strategy - Convenient market exposure to various industry sectors is readily obtained with ETFs. By tactically shifting assets, investors can over and underweight specific sectors according to their financial research, economic outlook, or market objective. Owning or selling concentrated business segments allows ETF investors to capitalize on both positive and negative sector trends.

Tax Loss Harvesting Strategy - Wash-sale rules don’t permit investors to realize a stock loss if they repurchase the same stock within 30 days. This problem can be avoided with smart tax loss planning. By redeploying the loss proceeds into an ETF in the same sector as the stock, for example, the wash-sale rule can be avoided. This allows investors to offset any capital gains with capital losses and still maintain market exposure.

Options Strategy - ETF investors have a multiplicity of option strategies at their disposal. purchasing call or put options is an aggressive technique. An options investor can control a large amount of ETF shares by paying a premium. The premium price is a fraction of what it would cost to purchase the shares in the open market. This provides an options investor with a great deal of leverage and a high risk/reward opportunity.  

Other ETF/Stocks Resources

"To be prepared against surprise is to be trained. To be prepared for surprise is to be educated."
-James Carse

http://finance.yahoo.com/etf
http://moneycentral.msn.com/investor/research/etfs.aspx
http://en.wikipedia.org/wiki/Exchange-traded_fund
http://www.ishares.com/home.htm
http://money.cnn.com/pf/funds/etf/
http://www.investopedia.com/terms/e/etf.asp
http://www.morningstar.com/Cover/ETFs.aspx
http://www.bloomberg.com/markets/etfs/
http://www.etfeducation.com/

http://www.amex.com/etf/eductn/etf_edu_indiv.html

http://www.etfguide.com/index.htm
http://www.nasdaq.com/investing/etfs/ETF-trading-strategies.aspx
http://www.proshares.com/about/index.html
http://www.globalspdrs.com/
http://www.vanguard.com/jumppage/etfs/index.html?WT.srch=1

Happy trading, wishing you the very best of all investments!


"You only have to do a very few things right in your life so long as you don't do too many things wrong."
-Warren Buffett

Stock Market Exchange Wall Str

"When reward is at its pinnacle, risk is near at hand."
-John Bogle

...excellent trading and investment ideas are offered by our sponsors ~ please check them out!

 

 

 

 

 


All of the content published on this website is to be used for informational purposes only and without warranty of any kind. The materials and information in this website are not, and should not be construed as an offer to buy or sell any of the securities named in these materials. Trading of securities may not be suitable for all users of this information.


home | trading step-by-step | trading game plan | trading strategy explained | ETF directory | buy order setup | sell order setup | ETF model portfolio
ETF Profit target | asset allocation | trading action log | online stock chart | ETF trade signals | trading homeworktrading psychology

my trading blog | stock market news | investment glossary | investment books | disclosure | financial resources | more links
resources1 | resources2 | resources3 | resources4 | resources5
Want to exchange links with the Best Free Stock Trading and Investment Strategy web site?
© 2009-2010 BestStockMarketTrading.com