Tuesday, July 31, 2012

Day Trading ETFs

Exchange Traded Funds, also known as ETFs, are also great vehicles for day trading. These securities will also allow you to participate in the market no matter what direction it is going. For instance, if financial stocks are going in the tank, you can just by FAZ, the Direxion Financial 3X Bear ETF. By finding ETFs that take advantage of bear moves in the marketplace, you don't have to worry about shorting stocks, which tends to be a more difficult endeavor. I also like ETFs because of the diversification they offer across market sectors. There are ETFs based on technology, biotechnology, financial sector, real estate, gold, silver, energy, and ETFs that track the major market averages. When you look for ETFs to trade, make sure you focus on those that have sufficient liquidity and volatility. Some of my favorites are in the Direxion and Proshares families and include FAS, FAZ, GASL, NUGT, EDZ, EDC, DRN and ERX, among others. Take a look into ETFs such as these. It is a lot easier to just day trade among these than trying to pick individual stocks for day trading. www.bestdaytradingstocks.com

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