ETF Trading Strategies Revealed

by David Vomund

Book Overview

Want to know how to trade the hottest new investment vehicle? This book reveals the secrets of profiting from a new and growing investment vehicle-the Exchange-Traded Fund. Pulling from experts in the field like Linda Bradford Raschke and Steve Palmquist, this book has all the information you need to begin trading ETFs for profit: . Learn the basics of ETFs; how they work, why they're growing in popularity, and how you can get your share of the profits...

• Format: Paperback
• Language: English
• ISBN: 1592802583
• ISBN13: 9781592802586
• Release Date: October 2006
• Publisher: Marketplace Books
• Length: 90 Pages
• Weight: 0.35 lbs.
• Dimensions: 0.2" x 5.4" x 8.5"

Customer Reviews

Simple strategies for 25-30% annual returns using ETF

This book is not for professional traders. This book is for two types of people: 1. Someone that currently invests in mutual, exchange traded or mutual funds; only wants to look at their portfolio a couple of times a month; and thinks that getting 25-30% annual returns is an improvement over their current strategy. 2. Someone that is just starting out doing stock trading and plans on developing programmable strategies that can be backtested. There are 6 variations of his strategy presented in 30 pages or less. With data available on Yahoo.com, it is very easy to implement this strategy. I went a step further and implemented them in a backtesting-enabled trading tool to verify the strategies. I was able to verify the performance but felt belittled because if I followed this technique since 1998 in Fidelity Select Funds starting with $100k, I would have had $1.2M in my account (mine is quite a bit below that). Getting 25-30% APR returns on a technique is significant, especially considering the little work involved. If you are just learning to do stock trading and plan on doing backtesting, then implementing these strategies will give you good experience of what is involved with developing a strategy and when you are finished you can invest a lot of your money with confidence. Once you have developed a better strategy with stock trading then you can move your money over to that strategy. If you are thinking about doing more advanced trading of stocks but are just starting out, I would start with this technique which presents a baseline for the minimum you need to achieve in your strategy before you invest serious dollars in your technique. Also, you can use this technique with your 401k funds, though the performance will probably be a bit less than what is quoted. Lastly, the returns quoted in this article are based on past returns and future returns will vary.

sleep at night strategy

I have followed these traders, espicially D Vomond! He offers very good investment advice, and you do not have to trade every day, hanging on the markets every little or big movement! Just check things once every week or two and upgrade if needed! takes maybe 10- 15 minutes a week! I also subscribe to his newsletter service! check my e-mail on the weekend, enter the trade on trade trggers, and off to my life for the rest of the week! you allways know what ETF's have the most momentum international, sector, or index small, mid, or large cap, groth or value!

Excellent strategies for any level of experience

How refreshing to find an author that gets to the nuts and bolts and doesn't try to fill a book with information not needed. Mr. Vomund provides easy to understand, and implement, strategies that will have the reader ready to start trading the next day. Worth many times the price!

Very practical and usable ETF trading strategies

This book is "worth its weight in gold" if you are serious about trading or investing using Exchange Traded Funds (ETFs). On first impression it seems like a pretty thin book (90 pages), and the heart of the material in Part III is just 30 pages. But in Part III you learn very simple, practical, back-tested rules and strategies for outperforming the market by rotating periodically to the best-performing ETFs. The book presents results (compound annual returns) from following these strategies from 1998 to 2006, ranging from 15-16% for style index rotation to 19% adding an international ETF, 20% for sector ETFs, and 26% using Fidelity sector funds. [...] The hardest thing for many traders or investors to accept may be that such simple, mechanical strategies that require monitoring the market only once every other week (with variants once per week or once per month) can perform so well. They work, for these funds better than for individual stocks, because of persistence of trends within market sectors, and styles such as value vs. growth and large-cap vs. small-cap that last even longer. Many people want to use fancy indicators, and many traders are in the market for the action and are too impatient for this approach. But if your goal is to simply make money with less risk than the overall stock market, this approach is very practical and usable. The other 60 pages of this book include an introduction to ETFs and how they work, two chapters on chart analysis -- one written by Steve Palmquist, a successful professional trader, and one where David Vomund interviews well-known trader Linda Bradford Raschke -- and a short chapter on trader psychology that presents the personal trading process used by Dr. J.D. Smith, founder of AIQ Systems. They are very worthwhile for their advice and antidotes to the traps that traders often fall into. I know David Vomund and knew Jerry Smith personally, and have met Linda Raschke and Steve Palmquist -- these are four very good people to learn from. David Vomund, the author, manages money using these strategies, and writes and presents seminars for AIQ. He is rated by Timer Digest as one of the ten best market timers for the 10-year period ending December 31, 2005, and has appeared on the cover of that publication twice in this period. But none of this seems to go to his head -- David's philosophy is pretty simple, practical, and all about making money rather than trading excitement or fame. If you actually apply these strategies, this book should literally be worth its weight (just a few ounces) in gold, and potentially quite a bit more.