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Monday, December 14, 2009

ETF Trading System For Beginners

By Patrick Deaton

When you are comparing the qualities and effectiveness of an ETF trading system you will want to take a critical look at several factors. Will the system be effective in the sector that you are trading in. Does it have consistent gains for its users. These and many other variables will play into whether a system is going to work for you.

Some traders starting out do not use a system or strategy. This is a costly way to learn ETF trading, but it is done. Using a system, especially when you are learning ETF is a great way to learn the intricacies of trading and what to look for when comparing different opportunities.

The most popular system used by new trader is a moving average system. This system incorporate a trend following strategy that can follow trends that cover a short period of time to a longer historical trend analysis. When using the moving average system with the complementary strategy a person can see significant gains in the vectors that the system is designed for.

When looking at systems it is important that you look at their history and origin. You will find that the origin of a system will provide the details that will help you in utilizing and optimizing the system, strategy, and vectors for which it has been designed. The system category will be clearly stated and in most cases you will find detailed information about the types of vectors that will show the best gains for your investment using this ETF trading system.

When a trading is occurring in vectors which do not have predictable rises and falls, an oscillating strategy is often employed. This strategy will not be effective with a system that depends on trend following. Many of the riskier trading vectors have use oscillators. However, an individual who does historical technical analysis will find that even the unpredictable is often predictable when looked at from a distance.

Using a system that is clear and easy often provides new traders with information they need. These systems often include detailed information and instructions related to trading strategies that will be effective with the system. They will also provide information for tweaking the system to meet the needs of the user.

Most people find that by using an ETF trading system and different strategies on paper before they begin trading is a good way to develop the system and strategy that will be most effective. There is no one system or strategy that works consistently for everyone. Some people develop systems that give them consistent gains while the same system will give must fewer gains to another trader.

When a system lists the sectors it will be most effective in the trader will be less able to utilize the system in a high risk vector. If the system and strategy have been designed for an oscillating vector it will have less analytical information regarding the sector and trends of the sector. However, there may be more information provided about the major companies in the sector that create the significant and unexpected rise and fall in their sector.

Creating a safety net that includes diversification and buy and sell limits will help to lower the risk of losing while a person is learning the intricacies of an ETF trading system. Creating a safety net for high risk trading and systems is especially important to the new trader.

Discussing different systems and strategies with long time traders and professionals will be an invaluable resource. By learning about how the systems and strategies are inter-related and their effectiveness in certain sectors, you will be able to find the system that will be most effective. Making a commitment to a system and following the rules of the system will also be more effective for long term gains. - 23218

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Trading Coach - Why You Can't Coach Yourself

By John Peters

If you are trading, chances are you would like to improve your performance. When traders think about how to improve their trading results, many turn to books, education and even starting a trading journal.

The idea of books is to improving their knowledge and learn from more successful traders. The trading journal should allow you to record and later analyse your trades, allowing you to spot areas for improvement. This could be called self coaching. But does it work? In this article we will explain why it is difficult to make self coaching work and why you should consider enlisting the help of a trading coach.

To improve your performance, obviously you must do something differently. If you read books or analyse your trades you may even find areas that you think you must improve. The problem is, that finding what you need to improve is not that difficult. Even starting the change is not that difficult. The difficult part is sustaining the change.

A change is easy to start but hard to continue. The brain is 'wired' to work in a certain way and to work in a different way will feel uncomfortable and strange. It is easy to slip back into the same habits and ways of thinking. It is very difficult to do this on your own. This is where a trading coach can help, by monitoring your trading habits and keeping you on the right track.

What does any coach do? They identify what you need to work on, teach you, support, encourage and motivate you. This is something that also may be possible to do in the short term yourself, but the effort fades quickly. A trading coach can offer objective advice, and keep you going when you have self doubt. A trading coach will tell you things you don't know, analyse your strengths and weaknesses and work with you to develop a trading plan. - 23218

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