Tag Archives: exchange traded funds

The Variety Of Options You Have When Considering Buying ETFs

If you are lucky enough to have plenty of cash sitting in the bank, then you will have many different options with regards to where you can invest this money. You may decide to put it into the stock market or indeed into houses or apartments, but I want to focus specifically on ETF investing in this article.

In case you are unfamiliar with ETFs, I am basically referring to exchange traded funds, which I am a huge fan of. The reason why I like these particular instruments is because they give you plenty of options both as a trader and an investor.

The trouble with investing in ordinary stocks is that you can only trade in one direction. In other words you are always looking for undervalued stocks whose stock price is likely to rise in the future. You are also restricted to investing in individual companies rather than a collection of companies.

However you cannot really say this about ETFs because they are very flexible instruments. These funds give you the opportunity to invest in a group of companies with one single investment. Therefore you could invest in an entire sector of the stock market if you so wished by buying the relevant exchange traded fund, whether it is banks, retail or telecoms, for example.

You can also invest in entire stock market indices such as the FTSE 100 if you so wish. You just need to buy a FTSE 100 ETF because this will move in line with the underlying index. There is also the option of buying international ETFs, which opens up a whole new world of opportunities for you.

The great thing about exchange traded funds is that they can be traded on a short term basis, and do not have to be used just for long-term investing. With a short ETF you can profit from any fall in price when you buy this particular fund.

For more trading tips, you might like to check out this Portfolio Prophet review to learn about a course that will reveal a few highly profitable trading strategies.

If you are investing in these instruments for the first time, then I suggest you invest in a good course to give you all the information you need. One of the best traders you can listen to is Bill Poulos because he is very knowledgeable and has a lot of experience. That’s why I particularly like the Portfolio Prophet software, which he created, because it will help you get started.

The point is that ETFs are very easy to understand, and the flexibility that they offer make them ideal instruments for many traders and investors. They can be bought and sold just like normal stocks, and you can easily use them to take short positions and to gain exposure to groups of stocks and sectors of the market.

In fact some people would say that ETFs have many more benefits than conventional stocks because they are such flexible instruments. The truth is that there are so many ways you can make money with them, so you may want to start using them in the future.

For help and advice on various aspects of stock market investing, you might want to visit this website which covers various aspects of stock and options trading.