ETFs Trading System

ETFs Trading System - Answers to the most common questions about our trading system, how signals are generated and how it could be used.

ETFs Signals - Answers to the most common questions about our ETFs signals and how they could be used.

Simple Trading System - The timing signals generated by the trading system are explicit and very simple. They tell what to buy or sell and at what price.

ETFs Signals - Examples of trading signals and email alerts that could be issued for ETFs (exchange traded fiends: QQQQ, SPY and DIA) trading with short description.

QQQQ History - past signals of the Nasdaq 100 Trading System with results obtained when following the investing in the ETF for the Nasdaq 100 (QQQQ - "Qubes").

SPY History - past signals of the S&P 500 Trading System with results obtained when following the investing in the ETF for the S&P 500 index (SPY - "Spiders").

DIA History - past signals of the Dow Jones Industrials (DJI) Trading System with results obtained when following the investing in the ETF for the DJI index (DIA - "Diamonds").

IWM History - past signals of the Russell 2000 Trading System with results obtained when following the investing in the ETF for the Russell 200 index (IWM).

XLF History - past signals of the S&P Financials Trading System with results obtained when following the investing in the ETF for the S&P Financials index (XLF).

QQQQ Returns - annual compound returns of the past QQQQ signals based on the Nasdaq 100 trading system since the system was lunched.

SPY Returns - yearly compound returns of the past SPY (SPDRs) trading signals based on the S&P 500 index trading system since the system was lunched.

DIA Returns - yearly returns of the past DIA (DJI tracking stock) trading signals based on the Dow Jones Industrials trading system.

IWM Returns - annual returns of the past IWM signals based on the Russell 2000 trading system since the system was lunched.

XLF Returns - annual compound returns of the past XLF signals based on the S&P 500 Financial index trading system.

QQQQ Trading - past yearly margin returns by investing QQQQ stock into simple Nasdaq 100 trading system

SPY Trading - yearly margin compound returns of the past SPY (SPDRs) signals.

DIA Trading - chart of margin annual returns of DIA trading system.

IWM Trading - check the returns that could be achieved by investing into IWM on margin..

XLF Trading - annual compound returns of the past XLF signals by investing into ETFs trading system on margin.

Options Trading System

Signal Example - There are several type of signals that could be generated by the trading system. Depending on the type of the signal a trade could be opened, close, stop-loss could be set, etc.

Options Trading System - Frequently asked questions/answers about our trading system and how it could be used.

Options Tutorial

Options History - In Europe the options started to attract tulip dealers in early 1600s who wanted to secure the reasonable price in the future. However, very soon the options started to attract speculators.

Options Overview - Options trading has become one of the most popular trading vehicles on the stock market that gives great leverage without margin requirements.

Why Options - Speculation is the main reason why many traders are involved in options market. This is why the options trading became so popular.

Options Expiration - Expiration date is the day on which an options  contract is no longer valid and, therefore, ceases to exist.

Options Types - There are three main types of options in the financial world: listed options, unlisted options and employee stock options.

Options Styles - In the investment world, the options style is determined in relation to the date the options could be exercised.
 
Calls and Puts - An option is the right but not an obligation to convey a piece of property. The person selling or granting the option is called the options seller and the person who has the right to execute option is called the options buyer.

Call Options - The call options buyer expects the price of the underlying stock to rise in the future but before the options expiration. On the other hand call options seller expects the underlying stock to drop in price.

Put Options - In opposite to call options, the put options buyer has the right to sell the underlying assets (stock) to the seller of the put option for a certain price (the strike price) and before or at a certain time (the expiration date).

Options Chart - The chart below summaries the using of the put and call options by different type of traders.

Option Symbol - Explains how to read an options symbol.

Exercise and Expiration - simple example with explanation of the event when an options buyer makes a decision to exercise the bought options contracts.

Intrinsic and Time Value - explanation with examples of calculating of options intrinsic and time value as a part of the premium paid by an options buyer.

In the Money Options - Out the Money Options - examples of in the money and out of the money options with explanation of the trading risk based on the selected options strike.

Trading strategy - Emotions come when a trader has to make a decision based on these signals. The trading strategy that defines how to react on a generated by the system signal helps to exclude emotion. The more detailed your trading strategy is the less emotions are involved into your trading decision.

Options trading strategy - It is recommended to have developed a trading strategy before starting to invest into options. A trader has to know how much to invest into each options trade in order to protect a portfolio from losses and successfully use selected trading system.

Minimum Invested Amount - This article explains how to calculate minimum invested amount for any trading system by following the simple rule that system returns have to cover expenses at least.

Index Trading

S&P 500 - The main way of investing into the S&P 500 index is to buy stocks of the companies from the basket of this index. Yet, there are numbers of ways to invest directly into the index.

S&P 500 Companies - Here you may see the list of the companies from the S&P 500 basket. The companies that are included in the index are selected by committee on the regular basis and this list could be outdated.

DJI - There are several ways of investing into the Dow Jones Industrial Index besides buying the stocks from the DJIA basket. One of the most popular ways of DOW investing is...

ETFs Trading - QQQQ, DIA, SPY, IWM, XLF are the most traded ETFs (Exchange Traded Funds) among different types of investors. These ETFs tracks Nasdaq 100, DJI, S&P 500, Russell 2000 and S&P 500 Financials respectfully.

NASDAQ 100 Quotes - end of the day quotes for the NASDAQ 100 index (ticker: NDX).

S&P 500 Quotes - end of the day quotes for the S&P 500 index (ticker: SPX).

DJI Quotes - end of the day quotes for the Dow Jones Industrials index.

S&P Financials - end of the day quotes for the S&P 500 Financials index (ticker: SPS) - financial sector of the S&P 500 index.

Russell 2000 Quotes - end of the day quotes for the Russell 2000 index (ticker: RUT).

QQQQ Quotes - end of the day quotes for the QQQQ stock. QQQQ tracks the performance of the NASDAQ 100 index.

SPY Quotes - end of the day quotes for the SPY stock. SPY tracks the performance of the S&P 500 index.

XLF Quotes - end of the day quotes for the XLF stock. XLF tracks the performance of the S&P 500 Financials index.

DIA Quotes - end of the day quotes for the DIA stock. DIA tracks the performance of the Dow Jones Industrials index.

IWM Quotes - end of the day quotes for the IWM stock. IWM tracks the performance of the Russell 2000 index.

Technical Analysis

Technical Studies - By going deeper into the intraday trading traders start to pay more and more attention to the technical indicators instead of doing the fundamental analysis. In general all technical indicators could be divided into four categories: a) price based indicators; b) volume based; c) breadth indicators; d) combined studies.

Technical and Fundamental Analyses - Both fundamental and technical analysis serve the same purpose to help to define possible future stock trend, yet, at the same time they are completely different in the way they analyze stocks.

Moving Average - Moving averages are the basic and the most simplest tools in technical analysis which are used alone, as components of various technical studies, to smooth out different indicators, to build signal lines, etc. Moving averages are the first step that has to b passed by a novice trader...

MACD - MACD abbreviation stands for Moving Average Convergence / Divergence. MACD is one of the commonly used indicators in technical analysis. This indicator was created by Gerald Appel in the 1960s. The MACD calculations are very simple and are based on the exponential moving average (EMA).

Options Glossary

Call Options  - An Option contract that gives the holder the right to buy the underlying security at a specified price for a certain, fixed period of time.

Change - The difference between the current price and the price of the previous day of a security.

Cover - To close out an open position - to buy back as a closing transaction an option that was initially written. This term is used to describe the purchase of an option or stock to close out an existing short position for either a profit or loss.

Covered Options - A written option is considered to be covered if the writer also has an opposing market position on a share-for-share basis in the underlying security.

Delta - A measure of the rate of change in an option's theoretical value for a one-unit change in the price of the underlying security. Call options have positive deltas, while put options have negative deltas.

Exchange - An area where an asset, option, future, stock or derivative is bought and sold.

Exercise - Implementing an option's right to buy or sell the underlying security. In the case of a call, the option owner buys the underlying stock.

Index - A compilation of the prices of several common entities (stocks) into a single number. An index is a group of stocks which can be traded as one portfolio, such as the S&P 500.

Long - The term used to describe the buying of a security, contract, commodity, or option.

Market - The term used to describe the buying of a security, contract, commodity, or option.

Opening - The period at the beginning of the trading session at an exchange.

Option - A contract that gives the owner the right, but not the obligation, to buy or sell a particular asset (the underlying stock) at a fixed price (the strike price) for a specific period of time (until expiration) .

Order - A ticket or voucher representing long or short securities and options.

Position - The total of a trader's open contracts - the combined total of antrader's open option contracts (calls and/or puts) and long or short stock.

Price - Price of a share of common stock on the date shown. Highs and lows are based on the highest and lowest intra-day trading price.

Profit - The range within which a particular position makes a profit. Generally used in reference to strategies that have two break-even points - an upside break-even and a downside break-even.

Put Options - An option contract that gives the holder the right to sell the underlying security at a specified price for a certain fixed period of time.

Return - The income profit made on an investment.

Risk - The potential financial loss inherent in the investment.

SEC - The Securities and Exchange Commission. The SEC is an agency of the federal government which is in charge of monitoring and regulating the securities industry.

Short - The selling of a security, contract or commodity not owned by the seller.

Spread - A trade in which two related contracts/stocks/bonds/options are traded to exploit the relative difference in price change between the two.

Stock - A share of a company's stock translates into ownership of part the company.

Strategy - With respect to option investments, a preconceived, logical plan of position selection and follow-up action.

ETFs Exchange Traded Funds Glossary

ETFs - An exchange-traded fund (or ETF) is an investment vehicle traded on stock exchanges, The ETFs are traded much like stocks. Most ETFs track indexes and in some cases they called "index tracking stocks".

Stock ETFs - Majority of  ETFs (Exchange Traded Funds) are index funds that were designed to replicate the performance of a stock market indexes. The QQQQ, SPY, DIA, IWM, XLF are the most popular index tracking ETFs.

By Industry - Exchange Traded Funds (ETFs) classified by the industry they belong to: financial services, health care, utilities, transportation, media, retail, industrial, etc.

By Investment Strategy - Exchange Traded Funds (ETFs) classified by the investment strategy: bearish ETFs, leveraged ETFs, value stock ETFs, active management ETFs, etc.

By Investment Style - Exchange Traded Funds (ETFs) classified by the investment style: large cap, mid cap, small cam and micro cap.

By Region - Exchange Traded Funds (ETFs) classified by the region the cover: U.S. ETFs and global ETFs witch include Canadian, Australian, European and emerging markets.

Bond ETFs - Bond ETFs are similar to other ETFs (Exchange Traded Funds). Bond ETFs pay out interest through a monthly dividend, while any capital gains are paid out through an annual dividend.

Commodity ETFs - From its name ones can guess that Commodity ETFs invest in commodities, such as precious metals and futures. The gold exchange-traded funds were among the first commodity ETFs and they have been offered in a number of countries.

Currency ETFs - "Euro Currency Trust" is the first currency ETF which have been introduced in 2005 by Rydex Investments. The Euro Currency Trust has been traded on the NYSE (New York Stock Exchange) under the FXE ticker since then.

Real Estate ETFs-REITs

Resource ETFs

US Exchanges

AMEX Exchange

NASDAQ Exchange

NYSE Exchange

Global Stock Exchanges

ETFs Listed in Britain

ETFs Listed in Canada

Support

Contact Info - We welcome any feedback or questions you may have regarding our services or this Web site.

Disclaimer - If you, the User, do not agree with any part of these Terms of Use, you must immediately discontinue any use of the Website.

Privacy Statement - We are committed to protecting your privacy rights and your personal information

Disclaimer: All information and research results on this site is intended only for informational and educational purposes and not as a solicitation to make an investment. Therefore you should not make any decisions based on our signals, our trading system or any other information on this site.

YOU AGREE THAT YOU TRADE SOLELY AT YOUR OWN RISK and investment/trading decisions are solely your responsibility. None of our web site materials should be interpreted as a recommendation or solicitation to buy or sell any security, or to take any specific action. Any trades executed following the commentaries and Buy/Sell signals on this web site are taken at your own risk from your own account. You agree to assume full responsibility for any and all gains and losses, financial, emotional or otherwise, experienced, suffered or incurred by you.