Beginners Guide To The ETF Trading System
One thing you have probably noticed is that there is no end of systems, strategies, and methods that are available for ETF traders. Many of these strategies and systems are hybrids or clones of other systems that are effective and have been used for several years. Some traders will advocate an ETF trading system while other do not use any systems or strategies.
The Turtle ETF trading system was an experiment that was conducted in'83. Richard Dennis and Michael Eckhardt wanted to find out if people who had not experience with ETF trading could learn, and be successful in trading following a simple strategy.
A lot of information was revealed by the study that was conducted that can be helpful to a new trader. Systems by their very nature are structured and simple. Step A leads to Step B, and so on. One important thing found was that many people don't actually follow the rules, or steps of a system.
Most systems have two elements, one is trend following and the other is vector rotation. While an ETF trading system may sound successful and doable, if a person does not want to follow trends, they are not likely to follow the rules of a system that involves trend following.
The individuals who participated in the Turtle experiment showed average annual returns of up to 80%. These individuals follows the rules set up by Eckhardt and Dennis strictly and did not deviate. But, there were/are flaws in the system. For that reason, there have been many hybrids of the Turtle ETF trading system developed and introduced over the years.
When you choose a system there will be rules that you will need to combine with your selected strategy to make your trading more successful. The system and strategy combined will provide you with the knowledge you will need to enter and exit at the times that will provide the most gains.
Most traders are using different systems simultaneously. One ETF trading system may work great with a vector, while the same system will be ineffective for another vector. Studying the effectiveness of a system for the vector you are trading in will allow you to make knowledgeable decisions about which systems and strategies to employ with your ETF trading.
Knowing the history and consistency of a system is also important. There are many systems introduced that do not have a history of consistent effectiveness. The tendency for some is to start using a system without knowing it's average earnings ratio. By doing some research on a system before you start using it you will be able to set realistic goals on your returns. You will also be able to pair the most effective strategy with that system to maximize your results.
Talking to traders and professionals who have worked with different types of systems will be helpful in finding the ETF trading system that is most effective for you. It is important to match the system to your personality. If you are the type of person that doesn't like to do a lot of research and homework on vectors, systems, methods, strategies, etc., then you will want to find a system that is not depending on following trends and has a lot of rules. - 23200
The Turtle ETF trading system was an experiment that was conducted in'83. Richard Dennis and Michael Eckhardt wanted to find out if people who had not experience with ETF trading could learn, and be successful in trading following a simple strategy.
A lot of information was revealed by the study that was conducted that can be helpful to a new trader. Systems by their very nature are structured and simple. Step A leads to Step B, and so on. One important thing found was that many people don't actually follow the rules, or steps of a system.
Most systems have two elements, one is trend following and the other is vector rotation. While an ETF trading system may sound successful and doable, if a person does not want to follow trends, they are not likely to follow the rules of a system that involves trend following.
The individuals who participated in the Turtle experiment showed average annual returns of up to 80%. These individuals follows the rules set up by Eckhardt and Dennis strictly and did not deviate. But, there were/are flaws in the system. For that reason, there have been many hybrids of the Turtle ETF trading system developed and introduced over the years.
When you choose a system there will be rules that you will need to combine with your selected strategy to make your trading more successful. The system and strategy combined will provide you with the knowledge you will need to enter and exit at the times that will provide the most gains.
Most traders are using different systems simultaneously. One ETF trading system may work great with a vector, while the same system will be ineffective for another vector. Studying the effectiveness of a system for the vector you are trading in will allow you to make knowledgeable decisions about which systems and strategies to employ with your ETF trading.
Knowing the history and consistency of a system is also important. There are many systems introduced that do not have a history of consistent effectiveness. The tendency for some is to start using a system without knowing it's average earnings ratio. By doing some research on a system before you start using it you will be able to set realistic goals on your returns. You will also be able to pair the most effective strategy with that system to maximize your results.
Talking to traders and professionals who have worked with different types of systems will be helpful in finding the ETF trading system that is most effective for you. It is important to match the system to your personality. If you are the type of person that doesn't like to do a lot of research and homework on vectors, systems, methods, strategies, etc., then you will want to find a system that is not depending on following trends and has a lot of rules. - 23200
About the Author:
Learn how it's very possible to make 6% per month in your investment accounts using etf trading! "Big A" is a recognized expert in the world of etf trading system and reveals etf secrets that have been kept under wraps by hedge traders for years. Get his free report and webinar today!
posted by X - Men @ 8:47 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home