Trading ETFs: Gaining an Edge with Technical Analysis
- ISBN13: 9781576603055
- Condition: NEW
- Notes: Brand New from Publisher. No Remainder Mark.
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. In this book, money manager Deron Wagner introduces the major types and families of ETFs and then provides step-by-step guidance to picking and trading funds. 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. 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 i
Rating: 
(out of 27 reviews)
List Price: $ 55.00
Price: $ 31.79
Question by Man o Man: What is the difference between an ETF index fund and a regular index fund?
Schwab has some new etf index funds (domestic and international) for clients that are transaction free and very low expenses….Are ETF index more risky than normal index funds ?
Best answer:
Answer by Irv S
‘ETF” = Exchange Traded Fund
What do you think? Answer below!
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Review by John T. Morris for Trading ETFs: Gaining an Edge with Technical Analysis
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Deron Wagner,in Trading ETFs, has presented a very simple, logical and, I think, successful approach to trading ETFs. In a very readable and understandable style and utilizing numerous chart examples, Mr. Wagner describes how he goes about finding the highest probability trades, how he determines the optimum entry point, how he manages open positions, and how he exits positions be they big winners, breakevens, or losers.
He describes his approach as being a “top down strategy”. His first step is to determine the direction of the broad market trend; then, once the trend is determined, he finds those indexes that have the most relative strength or weakness compared to the major indexes; then he selects the strongest ETFs within those indexes (or weakest if going short); then he looks at volume for confirmation; and finally he uses one or more of several techniques to properly time the new entry into the selected ETF.
The one thing that I liked most about Mr. Wagner’s book was his use of clean and simple charts. He uses almost exclusively only two and sometimes three moving averages, draws simple trendlines and areas of support and resistance, and shows volume levels and averages. He does not “goop’ his charts up with additonal indicators such as MACD-Histograms, slow stochastics, and RSI. While these indicators are certainly very useful to many traders, Wagner’s plain, simple approach of looking only at price action and volume confirmation has a lot to be said for it.
Risk management and position sizing are touched upon only briefly but adequately and his comments about using trailing stops are most enlightening.
The two chapters describing case studies of 10 ETF’s bought long and 10 ETFs sold short are most useful in illustrating the use of Mr. Wagner’s various setups.
I have read Trading ETFs only once now but I am already looking forward to going through it again a second and third time. It is the type of book that you can only absorb only so much the first time around but pick even more pearls of wisdom on subsequent readings.
Needless to say, I recommend Mr. Wagner’s newest book highly.
Review by Mike Chapin for Trading ETFs: Gaining an Edge with Technical Analysis
Rating:
As a traditional buy and hold investor, my portfolio has taken a beating over the past several months. So, I bought this book because I was looking for a smarter approach that would limit my risk. I was already familiar with exchange traded funds on a general level, but never thought about capturing shorter-term profits with them, even in my long-term IRA account. After reading the book, I was pleased to see it covered just the right amount of technical analysis strategy. The book made sense to me but wasn’t overwhelming. I found the strategies taught in Deron’s book were user-friendly and educational. It put everything together nicely.
Review by Trader Mel for Trading ETFs: Gaining an Edge with Technical Analysis
Rating:
If you trade ETF based on technical analysis (chart reading), this is a book that you must read. I’ve been trading ETF for almost a year. As I’m trying to develop my own trading rules, and strategies, how lucky I am to be able to read a great book like this. It reinforces what I’ve already known, and completes what I don’t know. To me, a successful trading system must clearly define all the following issues, and this book covers them all:
1. How to choose a trade. The book presents a top-down strategy based on relative strength, which is a very reliable indicator.
2. When to enter a trade. The book shows you how to enter on either pull back or breakout.
3. When to exit a trade. The book shows you how to exit a winning trade, as well as losing trade.
4. Position size. The book shows you how to calculate the position size based on volatility of the ETF so that the maximum risk of each trade is the same.
Armed by what I’ve learned from this book, I hope I am on the way to trading with consistent profit.
Review by Paul for Trading ETFs: Gaining an Edge with Technical Analysis
Rating:
Pros
- good information on ETF’s
- a trading strategy backed up by explanations and examples – charts with winning and losing trades
Cons
- not very well laid out, important information is concealed within the body of the book, I would have liked a more clear and concise approach.
- lacked some explanations of the basic principles;
- the chart examples are not always easy to follow.
All in all this book could have been much better simply with better layout and better formatted illustations. I think I will need to re-read it with a highlighter pen and some post-its
The content is good and the cons should not preclude you from buying the book if you are interested in trading ETFs be it on a day, swing or position basis.
Review by Paul A. Lopez for Trading ETFs: Gaining an Edge with Technical Analysis
Rating:
The book explains Deron’s disciplined process for trading ETFs. We are talking about trading, not investing. There is a difference. For a long term investor, the book provides some good background on ETFs, their growth and use among both private and institutional investors. The strength of his strategy is the understanding of relative strengths of ETF price action versus the overall market and versus each other. That’s just the beginning. I was interested in subscribing to his service but thought it might be a good idea to read his book. I’m glad I did. Monitoring supply and demand are the underpinnings of successful trading. He provides real-life examples of trades that worked and trades that didn’t. I highly recommend this book and his website for sophisticated traders and investors.
Not necessarily. “ETF” is an acronym for “exchange traded fund.” The principal difference between an exchange traded fund and a regular mutual fund is that exchange traded funds will not redeem your shares at net asset value (NAV). A regular mutual fund will buy back your shares at any time at the then-NAV. You don’t sell the shares to anyone but the fund. An exchange traded fund does not redeem shares. If you want to sell your shares, you sell them into the market, the same way you sell stocks. The price might be higher or lower than NAV, although it would probably be approximately equal to NAV for an index fund.
One other issue comes up with ETFs. Many of them are leveraged — they issue preferred shares with a guaranteed preferred return. These are approximately the equivalent of debt, meaning that any volatility in the value of the fund (up or down) is exaggerated. You might or might not like this leverage. You should find out if the Schwab fund is leveraged. This may affect your decision.
ETFs are less risky.
With ETFs you can buy or sell right now at the current price. You can also put in stop and limit orders, just like with any stock. You know what’s going on at all times and you know what your price is.
With regular index funds, like with any traditional mutual fund, you buy or sell your shares based on the net asset value which is calculated at the end of the day after the market closes. That means that you put your order in, but you don’t know the price until later. If there is a big move against you near the end of the trading day, you’re screwed. If I were to put in an order now (Saturday) for a regular fund, it would be held until the market closes on Monday. If I were to put in an order on an ETF now (Saturday) it would execute at the open on Monday and probably be closer to Friday’s close. In addition, I could put a limit on it so that if there’s big news before the market opens on Monday, I don’t get screwed.
An EFT can be traded during the “trading hours” with most brokers. Although they may not trade at exact NAV… they are not to be confused with closed Mutual funds. If they’re off by any amount… it’s minimul. The good thing is… you can get out immediatly. The cost: The commission on the trade (which Schwab won’t charge if it’s their ETF)……
A regular Mutual Fund can only receive the 4:00PM (EST) closing price.. at the next close.
Cost: Funds expenses (in general… not always) are higher than the same ETF’s… no load funds won’t have a sales charge… there may be a transaction charge (with Schwab).
If they’re tracking the exact same index….. the difference… generally will be the internal fees. Regular Mutual Funds generally have hifgh fees.
Be careful: The Schwab ETF’s may have higher internal Fees than the more well known ETF’s.
RE: Leveraged ETF’s: Never hold more than one day. These are designed for day traders. Their prospectus will infer just that.