Four Methods For Trading Exchange Traded Funds In Your Portfolio

ETF Profit Driver incorporates state of the art educational software to present a professional quality course. Bill Poulos has developed ETF Profit Driver to take advantage of the significant benefits offered the investor by Exchange Traded Funds. While an Exchange Traded Fund does offer a level of diversification as compared to an individual stock, It is still very possible to lose money trading any Exchange Traded Fund product, so it is important to adopt a system that tells you when to get into the position and, just as importantly, when to get out of the position.

Exchange Traded Funds offer investors and traders many advantages over both individual stocks as well as traditional mutual funds. Because Exchange Traded Funds are “baskets” of stocks, they provide the investor with immediate diversification that is not afforded by stock in a single company. With that diversification come a reduction in risk.

Mutual funds also provide diversification through their ownership of multiple stocks. They are not exchange traded, however. This means that your buy and sell orders will not be filled until sometime after the markets have closed. Exchange Traded Funds are traded on exchanges, so you are able to open and close positions during market hours allowing you to make effective use of stop and limit orders.

Bill Poulos has developed four highly selective methods for identifying Exchange Traded Funds and the best time to place a trade. ETF Profit Driver is designed to only pursue the best trade setups, so you should not expect a large number of buy signals but when they do occur you should expect to see a profitable trade more often than not.

Each of the four trading methods is designed to trade the market in concert with a developing or existing upward trend. Short selling is not part of this method, although you are able to “get short” the market through the use of negatively correlated Exchange Traded Funds. A negatively correlated Exchange Traded Fund is one that moves opposite the market, so when the market is in a downward trend one of these “short” Exchange Traded Funds will rise in value.

Once you understand the nature of market trends, you will have an appreciation for each of the four trading methods incorporated into ETF Profit Driver. The first method attempts to identify and jump aboard a newly developing trend when it first breaks out. Other methods look for safe points in the market to buy Exchange Traded Fund while it is in the trend and when it has corrected following a correction.

Buying an Exchange Traded Fund is only one part of the investing or trading game. To be successful, it is also necessary to manage risk and know when to take profits. Most retail investors and traders fail miserably in this area. ETF Profit Driver incorporates a very effective risk management system, which eliminates any confusion or indecision about where to place stops or when to exit a position with a profit. The rules for closing trades are clearly laid out in the course materials.