Trading ETFs E-Book

Deron Wagner

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Bloomberg Professional
• Sprache: Englisch

Seitenzahl: 339

Veröffentlichungsjahr: 2010

Beschreibung

An exchange-traded fund (ETF) is a basket of stocks that trades on an exchange with the same simplicity and liquidity of an individual stock. By the end of 2007, 546 ETFs were trading on U.S. exchanges and some 450 were in registration. The total asset growth of ETFs has been equally impressive, doubling every year since 1994 and reaching $5.8 billion in 2007. In Trading ETFs: Gaining an Edge with Technical Analysis money manager Deron Wagner introduces the major types and families of ETFs and then provides step-by-step guidance to picking and trading funds. Benefits of ETFs include: * Exposure to equities at a lower level of risk than trading individual stocks * Lower fees * Access to markets that were previously difficult and expensive to participate in, including: Government Treasury bonds, international markets, commodities and even currencies. Unlike other books on ETFs, Wagner's strategies are based on technical analysis, a method of timing the market that greatly improves an investor's chances of predicting short and intermediate term ETF trends. Benefits of Wagner's approach include: * A 'top down' trading strategy that increases an investor's odds of success * A method for identifying the strongest sector indexes * A method for identifying the ETF families with the greatest relative strength ETFs are as easy to invest in as mutual funds and they will soon be as popular. Wagner's comprehensive catalog of the ETFs now available, his insights into successful trading techniques, and his solid research and informative examples, will be an invaluable resource for everyone trying to come up to speed on this new investment opportunity. Gold Medal Winner (tie), Investing Category, Axiom Business Book Awards (2009)

Leseprobe

Table of Contents

Praise

Title Page

Copyright Page

Dedication

Table of Figures

Foreword

Acknowledgements

Part One - ETF Overview and Selection

CHAPTER 1 - Why Use Technical Analysis with ETFs?

History and Growth of ETFs

Trading ETFs Versus Individual Stocks

CHAPTER 2 - Major Types and Families of ETFs

Industry Sector ETFs

Fixed-Income ETFs

International ETFs

Commodity ETFs

Currency ETFs

Inversely Correlated and Leveraged ETFs

Actively Managed ETFs

Popular ETF Families

Guide to ETF Families

Part Two - ETF Selection Through Technical Analysis

CHAPTER 3 - The Top-Down Strategy

Preferred Time Interval of Trading

The Top-Down Strategy Defined

Determining the Direction of the Broad Market Trend

Uptrend, Downtrend, or Range-Bound? Now What?

CHAPTER 4 - Finding Indexes with the Most Relative Strength

What Is Relative Strength?

How Do I Find Sectors with Relative Strength or Weakness?

What to Look for When You Scan

Comparing Sector Indexes

Long-Term Relative Strength or Weakness

CHAPTER 5 - Selecting the Best ETFs

Know the Compositions of Various ETFs

Buy the Leaders, Not the Laggards

Analyzing Volume

CHAPTER 6 - Supplementing the Basics

Using Multiple Time Frames for Confirmation

Understanding Consolidations

Short Selling the Head-and-Shoulders Chart Pattern

The 200-Day Moving Average Brick Wall

Typical Inverse Sector Relationships

Ten-Day Moving Average in Strong Trends

Fibonacci Retracements

Part Three - Timing Your Entries and Exits

CHAPTER 7 - Strategies for Entry

Breakouts and Pullbacks

The Opening-Gap Rules

Breakout or Pullback Entry?

CHAPTER 8 - Strategies for Exit

Strategies for Closing Winning Positions

Strategies for Closing Losing Positions

Trailing Stops

CHAPTER 9 - Ten ETFs Bought Long

Breakout to a New High

Breakout of a Bullish Consolidation

Continuation of a Long-Term Uptrend

Breakout Above an Intermediate-Term Downtrend

Continuation of a Long-Term Uptrend

Resumption of a Long-Term Uptrend

Pullback to an Intermediate-Term Uptrend Line

Failed Follow-Through of a Downtrend Reversal

Follow-Through of a Downtrend Reversal

CHAPTER 10 - Ten ETFs Sold Short

Short Setups

Resumption of an Established Downtrend

Head-and-Shoulders Pattern

Resumption of an Established Downtrend

Failed Breakdown Below Support

Breakdown Below the 200-Day Moving Average

Failed Breakout to a New High and Subsequent Trend Reversal

Failed Breakout to a New High and Subsequent Trend Reversal (Short-Term)

Breakdown Below the 50-Day MA

Bounce into Resistance of a 50-Day MA

Break of a Symmetrical Triangle Chart Pattern

Part Four - Fine-Tuning Your Strategy

CHAPTER 11 - Tailoring Your Approach

Position Sizing

ECNs

Market or Limit?

Identifying Relative Strength Intraday

Selecting the Sector Indexes with Relative Strength

Putting It All Together: Trade Entry Example

CHAPTER 12 - Additional Pointers

Assessing Your Trades

Choppy and Indecisive Markets

Proper Trigger Prices

Trade What You See, Not What You Think

Know When to Be in SOH Mode

Don’t Necessarily Avoid High-Priced ETFs

Support and Resistance at the Whole Numbers

Always Use Reward/Risk Ratios

After-Hours Trading Activity

Price Divergence Due to Dividend Distributions

Withstanding Stop Hunts

Closing Thoughts

Afterword

Suggested Reading

Index

About Bloomberg

About the Author

Table of Figures

FIGURE 1.1

FIGURE 1.2

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FIGURE 1.4

FIGURE 2.1

FIGURE 3.1

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FIGURE 3.5

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FIGURE 5.8

FIGURE 6.1

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FIGURE 6.6

FIGURE 6.7

FIGURE 6.8

FIGURE 6.9

FIGURE 6.10

FIGURE 6.11

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FIGURE 6.13

FIGURE 7.1

FIGURE 7.2

FIGURE 7.3

FIGURE 7.4

FIGURE 7.5

FIGURE 8.1

FIGURE 8.2

FIGURE 8.3

FIGURE 8.4

FIGURE 8.5

FIGURE 8.6

FIGURE 9.1

FIGURE 9.2

FIGURE 9.3

FIGURE 9.4

FIGURE 9.5

FIGURE 9.6

FIGURE 9.7

FIGURE 9.8

FIGURE 9.9

FIGURE 9.10

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FIGURE 9.24

FIGURE 10.1

FIGURE 10.2

FIGURE 10.3

FIGURE 10.4

FIGURE 10.5

FIGURE 10.6

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FIGURE 10.8

FIGURE 10.9

FIGURE 10.10

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FIGURE 10.14

FIGURE 10.15

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FIGURE 10.17

FIGURE 10.18

FIGURE 10.19

FIGURE 10.20

FIGURE 10.21

FIGURE 11.1

FIGURE 11.2

FIGURE 11.3

FIGURE 11.4

FIGURE 12.1

FIGURE 12.2

FIGURE 12.3

FIGURE 12.4

FIGURE 12.5

FIGURE 12.6

Praise for

Trading ETFsGaining an Edge with Technical Analysis

BY DERON WAGNER

“Valuable not only for a comprehensive cataloguing of the vast array of exchange-traded funds that are now available but also for the insights into successful trading techniques, Deron Wagner’s Trading ETFsshould become the definitive guide to this increasingly vital part of the capital markets. The book includes numerous examples of the kinds of techniques that Wagner uses in his selection of the most timely ETFs to trade and underscores one of the core insights of his trading discipline, which is to ‘trade what you see, not what you think.’ This book is recommended both to professionals who are using—or should be using—ETFs as an asset class within their portfolios, as well as for the individual investor who wants exposure to wider sectors and geographical regions than those available, with comparable cost-effectiveness, elsewhere.”

—Clive Corcoran Publisher and editor, TradeWithForm.com Author, Long/Short Market Dynamics Pension fund manager and commentator on CNBC’s European Closing Bell

“Deron Wagner has written an excellent book, backed up by solid research and informative examples. This is one of the most illuminating works on exchange-traded funds written in recent years. His incisive commentary on position sizing alone is worth the cost of the book.”

—Alan Farley Publisher and editor, HardRightEdge.com Author, The Master Swing Trader

“Deron Wagner has written a terrific book on ETFs based on his extensive experience as a trader. He provides numerous insights and examples of his successful trading style. This is truly a must-read book for anyone who trades or is thinking of trading this fascinating investment product.”

—Michael Sincere Author, Understanding Options and Understanding Stocks

“Having traded the ETF markets since their infancy, Deron Wagner offers the reader a voice of true experience. In this book, he describes an analysis structure that has withstood the test of time. Investors looking for an edge in the ETF marketplace need look no further!”

—Bo Yoder Trader and risk management consultant Founder, BoYoder.com

“With ETFs now available for the broadest market indexes to the most focused of sectors, Deron’s new book on ETFs is a must-read for investors and traders wanting to simplify the choice of which ETFs to trade and how to trade them.”

—Greg Capra President and CEO, Pristine.com

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ATTENTION CORPORATIONS

This book is available for bulk purchase at special discount. Special editions or chapter reprints can also be customized to specifications. For information, please e-mail Bloomberg Press, [email protected], Attention: Director of Special Markets, or phone [phone].

© 2008 by Deron Wagner. All rights reserved. Protected under the Berne Convention. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher except in the case of brief quotations embodied in critical articles and reviews. For information, please write: Permissions Department, Bloomberg Press, 731 Lexington Avenue, New York, NY 10022 or send an e-mail to [email protected].

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This publication contains the author’s opinions and is designed to provide accurate and authoritative information. It is sold with the understanding that the author, publisher, and Bloomberg L.P. are not engaged in rendering legal, accounting, investment-planning, or other professional advice. The reader should seek the services of a qualified professional for such advice; the author, publisher, and Bloomberg L.P. cannot be held responsible for any loss incurred as a result of specific investments or planning decisions made by the reader.

Library of Congress Cataloging-in-Publication Data

Wagner, Deron.

Trading ETFs: gaining an edge with technical analysis / Deron Wagner. p. cm.

Summary: “ This book will teach the reader a detailed system of how to profit from the various types of exchange-traded funds (ETFs) through a unique strategy of technical analysis designed to compare relative strength using a top-down approach. It focuses on the opportunities in the lesser-known industry sector ETFs, as well as international, commodity, and currency ETFs”—Provided by publisher.

Includes index.

ISBN 978-1-57660-305-5

1. Exchange traded funds. 2. Investment analysis. I. Title.

HG6043.W34 2008

332.63’27--dc22 2008018663

Edited by Dru-Ann Chuchran