Why actively trade ETFs?
- Thread starter deronwagner
- Start date
Thanks for the interesting info. about the Toronoto Stock Exchange.
By "pioneer," I did not mean that AMEX had the first ETF, but meant they were at the forefront of bringing them into wide public exposure. They were also the first to bring ETFs to the domestic (US) market.
By "pioneer," I did not mean that AMEX had the first ETF, but meant they were at the forefront of bringing them into wide public exposure. They were also the first to bring ETFs to the domestic (US) market.
Hi Deron,
I am presently working on a comprehensive list of all the ETFs, grouped together by sector or industry. If you are interested, I can repost the file here when completed (expected around September 1).
Yes that would be very useful thank you.
I am presently working on a comprehensive list of all the ETFs, grouped together by sector or industry. If you are interested, I can repost the file here when completed (expected around September 1).
Yes that would be very useful thank you.
glad to see the positive comments regarding trading the QQQ's and other ETF's.
I have seen a number of traders loose their shirts and thier LLC funding because whilest we traders are reaping the world wind, they were only up $.20 on a $.69 move for the whole day (actually up until the 2:30pm EST point that we compared notes), whilest we were up over $1.32 per share.
Unfortunately, these vehicles, while spread over so many securites represent full markets (like the QQQ's) or market segments (like SMH, HHH, PMH, etc.) they are perfect vehicles for spread trading and swing trading. At the same time they are the worst securities for scalping and intraday trading with very short time frames, as they just don't move in whipsaws with large enough swings to capture say, $.06 on the dime or there abouts.
glad to see the positive comments
I have seen a number of traders loose their shirts and thier LLC funding because whilest we traders are reaping the world wind, they were only up $.20 on a $.69 move for the whole day (actually up until the 2:30pm EST point that we compared notes), whilest we were up over $1.32 per share.
Unfortunately, these vehicles, while spread over so many securites represent full markets (like the QQQ's) or market segments (like SMH, HHH, PMH, etc.) they are perfect vehicles for spread trading and swing trading. At the same time they are the worst securities for scalping and intraday trading with very short time frames, as they just don't move in whipsaws with large enough swings to capture say, $.06 on the dime or there abouts.
glad to see the positive comments
I love trading the SPY's -- my software allows me to get a level 2 with combined ISLD and INCA SPY quotes -- then I send a smart order - and it sends to whichever one has the best price -- very thick - fast fills -- the only way to trade them is thru ECN's !!!
Limitdown,
While I am not sure if I agree that QQQ and SPY don't move in whipsaws, I do agree that they are great vehicles for swing trading. In fact, swing trading the ETFs is exclusively what we do because they are ideal for that.
The ETFs I like best for daytrading are QQQ, SPY, DIA, SMH, and BBH. The rest of them are much better for swing trading due to larger spreads and less liquidity.
I will post that article on getting efficent ETF executions on Monday.
While I am not sure if I agree that QQQ and SPY don't move in whipsaws, I do agree that they are great vehicles for swing trading. In fact, swing trading the ETFs is exclusively what we do because they are ideal for that.
The ETFs I like best for daytrading are QQQ, SPY, DIA, SMH, and BBH. The rest of them are much better for swing trading due to larger spreads and less liquidity.
I will post that article on getting efficent ETF executions on Monday.
I play the Q's and the SMH almost on a daily basis. The Q's liquidity makes them great to play size. The SMH spread and liquidity has greatly improved over what it used to be, and makes it much easier than picking an individual Chip stock to play.
Deron,
Have you looked at basket trading? Fidelity just started letting you define your own basket of 5 to 50 stocks and trade them as a single trade. You can allocate each stock by $ amount, #shares, or %. The minimum investment is $10,000.
This allows you to pick the top stocks in the top sectors or short the bottom stocks in the bottom sectors.
I am looking into this. Has anyone traded baskets?
Ed
Have you looked at basket trading? Fidelity just started letting you define your own basket of 5 to 50 stocks and trade them as a single trade. You can allocate each stock by $ amount, #shares, or %. The minimum investment is $10,000.
This allows you to pick the top stocks in the top sectors or short the bottom stocks in the bottom sectors.
I am looking into this. Has anyone traded baskets?
Ed
Originally posted by TorontoTrader
Hey folks, if you didnt realize it yet, theres something out there thats better then ETF.
It's the called the emini futures market.
I use to trade stocks, then the ETF now the emini, and let me inform you that I will never go back to trading the ETF.
There are so many advantages to trading the Eminis then ETF,
I'll list the most important ones.
1) commission baby, oh yea I can scalp all day and not worry too much about commission in the eminis. thats if I want to scalp, which I dont usually.
2) Liquidity mama, oh yea! alot more volume then the ETF!
3) Leverage! badda bam badda boom. 1 point in the emini is $20 in the nasdaq emini and $50 in the S&P emini
4) you only need an account of 4k to be able to generate as much income as a 30k account in the ETF.
This post has been intentionally humour, but the fact is that the EMINI point an click just outclass the ETF.
To the less inform, I hope this helps you, and you can better make a decision with all availiable facts given.
Live long and trade with prosperity
There are many posts about ES trading on this website. Are there prop firms for trading the futures?