Why ETF Trend Trading Is Better Than Trading Stocks Or The Forex?
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With the stock market all over the place the last few years, there has been increasing interest in systems that can help you make money in any market. One of the most popular category of systems is called trend trading or trend following. Basically, the way most of these systems work is by looking at medium to long term price moves of stocks or foreign currencies to try and predict where they will go next.
Each system works a little bit differently but broadly speaking they do this by looking at 50 day and/or 200 day moving averages using technical analysis. Most of these system work either with the stock market, know as stock trend trading, or the foreign exchange markets (FOREX) know as FOREX trend trading. While each of these are fine, I don’t think they compare to ETF trend trading.
Let’s look at the flaws of focusing only on the stock market or FOREX for our investing options. The main flaw with both of these markets is that they can go up, down and sideways. Most trend trading systems will allow you to make money in both up and down markets but have difficulty making money in a sideways one. Thus, if you focus all your energy on just one of these, then you may find you have difficulty making money some of the time.
The other flaw with almost all investing systems is that they leave out key details on how to become and remain a successful trader. You can have the best system in the whole world but if you don’t know anything about risk and emotional management you will fail! It is as simple as that.
This is why I think ETF trend trading has all other systems beat hands down. First of all, as the name suggests, it uses ETFs (exchange traded funds) instead of individual stocks or currencies as its financial vehicle. This has several advantages over other alternatives.
The most important of these has to do with flexibility. Using ETFs you can invest in all kinds of different markets from individual stock sectors, to oil, to foreign stock indexes and even foreign currencies. There is always some market going up or down somewhere and with ETFs you can invest in them easily. To find some of the other advantages ETFs have over other alternatives I recommend you have a look at this free ETF course.
The other reason I love ETF trend trading is that it explains all the psychological issues you may have as a trader. From getting board to being too greedy or fearful it helps you overcome all these problems. It also explains proper risk management in a very simple and straightforward way.
So given the flexibility, diversity and inclusiveness of the course I think ETF trend trading is the best one out there today. But, don’t take my word for it. By using my link below you can get an exclusive behind the scenes look at the whole system absolutely free. All you have to do is leave your e-mail address.
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