Sunday, July 17, 2011

ETFs Trading

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Exchange Traded Funds have become very popular over the past decade. This is one of the simplest way for many investors to trade the market. Amazing thing is that not just retail traders are using ETFs, but many professional investors, portfolio managers and big companies are investing into the ETFs.

One of the best thing about Exchange Traded Funds is that there is no need to perform fundamental analysis in order to start trading, especially when it comes to the trading funds that track indexes. You do not have to do it! Why? Because it is already done by the sponsors of the indexes. The index listing is revised on the regular basis and weak companies (stocks) are removed. As a result, a trader (investor) may solely focus on other aspects of trading such as technical analysis, developing a trading system, and etc.

So, do not waste you time in research of the magic stocks that can make you a fortune. Focus on something you are capable of doing. I do not believe that a simple trader has ability and access to precess thousands of information (reports, balance sheets) for thousands of stocks and do it on regular basis. trust the professionals who already do it for indexes and trade indexes through the Exchange Traded Funds (ETFs).

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