Monday, August 21, 2006

ETF trading like the pros

Sometime when investing, and especially with something such as an ETF fund which is very broad, low risk, and pretty safe investment. Sometimes thinking outside the box is a pro thing to do. Thinking of different markets or sects that you feel have strengths. Don't always fall for investing into a ETF with what seems hot right now such as the REIT's or energy. Think outside the box a little and look down the road and what will be hot from 3 to 6 months from now? Okay no one can really predict this, but you can be pretty safe with an EFT so stretch it a little bit!

Look into actual values and what is undervalued in today's market could be a steal down the road or long term. This would be a great steal to get into a EFT. This is what the pros do, they don't just wait there time at looking or analysting and identifying the true stock value and if it's a fair enough stock value to have to date.

We can not say enough about fundamental and stock analysts research and evaluation could save you not only a lot of money, but probably a lot of time in the long run. Look and research what the ETF's are trading, the history holds, and always check the growth rate.

Remember there are several companies out there for the ETF index fund. So that means competition, but competition can be healthy. So what is our point...our point is sometimes going with the other guy that is or could be offer the same ETF for a lower price then why not go for it! Sometimes the big guys can hurt you in the long run...becuase of them want to make money too. But, sometimes those big guys make money off you more then you could believe!

Always remember as well, that investing is long term. If your looking for a quick buck first you will not be getting them out of any ETF's. So research, check into a lot of different things, and pick the one that you think can make a good long term return and start trading smart like a pro!