The chance to invest money and feel like you have invested in a diversified fund is appealing to many. It is one way to manage their risk profile. Some like this diversification but find mutual funds don’t allow you to take advantage of intra day changes in market prices. For these investors Exchange traded funds or ETF trend trading provides a suitable investment vehicle.
A mutual fund diversifies risks by pooling the funds of a number of investors and using this pot to be a number of stocks. But the investment is limited to a price based on the net asset value at a point in time. There is little chance to capitalize on the movements in the market during any trading day. Continue reading ‘ETF Trend Trading – How to Diversify and Follow the Market’ »