Learning how to trade ETFs

[CATAPILLAR]

Can anyone at ASF give me some guidence on learning to trade ETFs. I'm not a beginner at trading but I've never dambled in ETFs and lately I've become more interested in investigating them. Just wondering if there are any courses or good books to understanding ETFs?
CATAPILLAR

 

[RichKid]

Can anyone at ASF give me some guidence on learning to trade ETFs. I'm not a beginner at trading but I've never dambled in ETFs and lately I've become more interested in investigating them. Just wondering if there are any courses or good books to understanding ETFs?
CATAPILLAR

Hi there,

Are you looking at ASX listed etf's? As for US etf's there's a fair bit on the web (google) but nothing that I know enough about to recommend highly atm.

I find Aussie etf's to be a bit illiquid and you can't short most of them. STW (xjo tracker) seems to be the most liquid but I'm not sure. www.asx.com.au has a section on etf's.

Been looking into this since last year myself, the US markets (including etf's) became more attractive to me after being introduced to Interactive Brokers' seamless trading platform and low fees.

 

[CATAPILLAR]

Thought Trembling Hand or Tech/a might have replied to this one but they must have chocolate on their fingers.
I've had a look at the ASX info on ETFs but still gobbly gook to me. I need the beginners manual.
Sometimes on the ASX they have a little video or demonstration on how it works but couldn't find anything on EFTs as a demo.
I understand you can buy ETFs on Gold- Platnium-silver and S&P 500 but not sure how it cost or how you buy them as a unit or singularly. Totally in the dark on this one. I'm fine with shares but ETFs new ball game. But willing to learn.
CATAPILLAR

 

[Trembling Hand]

I PM this one but worth repeating in relation to trading or buying a market index as compared to stock picking.

One thing to think about is that they may actually give you under performance compared to stock picking. As you are buying the whole market (ASX 50 or Materials etc) you are getting the duds with the good. Tough call at the moment but you could do better trying to pick the top 10 in the sector or the top 1 of each Sub-Sector. Very hard at the moment. Maybe they are perfect for now in that they will get you in the market at low transaction cost but not to wild a ride compared to stock picking.

As always when a markets is hard to trade its just that.....hard to trade...

 

[tech/a]

I dont trade them.
But here is an article which may help.
http://info.moneyweek.com/article.p...=&jtid=2376897&UID=JF+-+Google+Intl&p_id=4643

I'm sure there are some examples being traded on "The Chartist" which may be helpful.

 

[wayneL]

Thought Trembling Hand or Tech/a might have replied to this one but they must have chocolate on their fingers.
I've had a look at the ASX info on ETFs but still gobbly gook to me. I need the beginners manual.
Sometimes on the ASX they have a little video or demonstration on how it works but couldn't find anything on EFTs as a demo.
I understand you can buy ETFs on Gold- Platnium-silver and S&P 500 but not sure how it cost or how you buy them as a unit or singularly. Totally in the dark on this one. I'm fine with shares but ETFs new ball game. But willing to learn.
CATAPILLAR

I trade the odd US ETF and presume it is the same for Oz ETFs.

As far as the mechanics of buying and selling them, it is no different to shares. Just ring your broker and order x "shares" of GOLD or STW or whatever. (or trade them online in the usual way)

 

[CATAPILLAR]

Thankyou fellow traders. Tech/a I've decided to subscribe to Money Week I thought their story on ETFs was good reading. Thought it wouldn't hurt to have a good Mag to read.
Cheers CATAPILLAR