Archive for October 12th, 2009
Benefits Of An ETF Trading System
October 12th, 2009
Exchange Traded Funds or ETFs are bought and sold just like any other stock. They can be bought at a brokerage firm. An ETF trading system is a set of rules for buying ETFs that helps to take the emotion out of buying. If you follow the rules and never deviate from those rules, you can make money, even with market downturns.
Many systems pose a risk that is between a mid-low and a a medium risk. Many are easy to use.
There is one key to ETF trading systems. That key is never deviate from the rules. And, while that may sound easy, if the market starts to fall, our emotions say sell and sell now.
Even in an unstable market, you can consistently out perform the buy and hold people. You can count on a steady annual return.
Time travel back to 1928. The market was going big guns. You did not have to have a plan to make money, just drop money into the stock market. And all was well until one day when the market crashed the next year. People followed their emotions and feelings to financial ruin. Emotions are a poor guide for making investments.
Investors that left their emotions at home, may have experienced short term losses, but continued to see an annual return on their investments. By following the rules, investors continued to see a fourteen percent annual return from the peak of 1929 for the next twenty years. The buy and hold people did not see the market reach its 1929 high again for many years.
It could take the market another fifty to eighty years to recover to its highs of a few years ago. Unfortunately, most of us cannot wait that long. We need something that will give us that same consistent annual return. ETF trading system can do just that. They will help you to avoid the pitfalls of sharp market downturns. They help you to make money year after year.
Stop following the heard. You probably learned that lesson a couple of years ago when you were trampled. Followers always get trampled in the stock market, it is only the leaders that win. They know to sell before the everyone else and to buy before everyone else. That is why they win.
Become a leader that wins by using an ETF trading system. Stop following your emotions and find the principles that work to bring you a consistent annual return on your money.
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