Trading In Exchange-Traded Funds (EFTs)
One good way to re-enter an uncertain market is to use Exchange-traded Funds (which are a basket of shares) rather than trade in individual stocks.
We often use this approach when markets are in a transitional phase as they have been since March 2009.
There are a number of EFTs based on markets and sectors so it is a good way to place a small toe back in volatile markets.
Check out the chart below:-
As you can see the ETF went into a clear uptrend March with a pullback in June before returning to an uptrend. A trade triggered in March as the MACD line crossed the signal line would have provided an excellent return.
We’ll be doing more posts and articles on reading charts and using trading indicators as we go along. You can be sure we’ll be returning to EFTs.
Todd B
Tagged with: eft trading • trading exchange traded funds • trading in eft • trading in efts • trading in uncertain markets
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