How to Trade ETFs: Looking Under the Hood of Leveraged ETFs
The fastest area of growth in the financial markets today is in ETFs and nearly every Daily Battle Plan subscriber trades ETFs on a regular basis. The fastest growing ETFs are leveraged ETFs.
As I mentioned the other day, we’re about the publish in-depth research on leveraged ETFs going back to the inception of the products. I feel this research will allow you further understand how and why leveraged ETFs move as they do and then we’ll look at ways to trade this research.
As an introduction to our research, today would be a good day to read a report published on Index Universe (it’s a terrific site). Titled “Gearing Up for Leverage: An In-Depth Review of a Growing Market Phenomenon”, this report was put together by a senior analyst at Wachovia Securities. The writing is a bit dense (not a criticism…just a heads-up) but it does a very good job of helping you go deeper in your understanding of how these leveraged products work. You can then take this knowledge along with our research and apply it in making your ETF trading and investment decisions.
Click here to read: Gearing Up for Leverage: An In-Depth Review of a Growing Market Phenomenon
Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.