Moving forward, we want to teach how day trading ETF works.

Day trading is among the best ETF trading strategies because this environment is characterized by high volatility. This means that you have the ability to buy and sell ETFs any time throughout the trading day.

An ETF exchange-traded funds can provide you with very lucrative short-term opportunities. However, the odds of making any money by gambling on day trading ETFs are very low. Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules on how to trade ETFs. The 50 — period moving average is one of the most popular indicators in stock trading. The 50 MA is a psychological level that many professional traders and investors use to gauge the market sentiment.

Because many traders use the 50 moving average it has more relevance to the price action. This is the reason why we use the 50 MA in combination with the opening trading range.

We like to focus on the opening trading range when day trading ETFs. The morning session is when the smart money usually steps in the market and subsequently, the most volume happens during the morning session.

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By focusing only on the morning session we avoid being glued to the chart all day long and only trade alongside the institutional money. But, we like the first 30 minutes after the open, to wait and see what the smart money is doing. Successful day trading leveraged ETFs is all about taking those opportunities during the most volatile time of the trading day.

After we analyze how the market plays out during the first 30 minutes of the opening session, we look for the price to hold above the key 50 moving average. Simply mark on your chart the previous 5 trading days and the highest price of that trading range.

ETF Trading Strategies – How to Day Trade ETFs

This brings us to the next important thing that we need to establish when day trading ETFs, which is where to place our protective stop loss. We found this technical reading to be very significant for day trading. If your profit target is not reached by PM ET close the trade manually. Use the same rules for a SELL trade — but in reverse. In the figure below, you can see an actual SELL trade example.

Day trading ETFs provide simple investment opportunities and have a lower operating cost than most of the other financial vehicles. At Trading Strategy Guides we focus on technical analysis. We love technical analysis because it has worked for us in our many years of trading, and for many other professional traders. Please Share this Trading Strategy Below and keep it for your own personal use!

Thanks, Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.

7 Best ETF Trading Strategies for Beginners

How the expense ratio applies if I do day trading an ETF? Forex Trading for Beginners. Shooting Star Candle Strategy. Swing Trading Strategies That Work. Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. It is more than 10 years already. I started with day trading of stock market indexes but later I found that exchange traded funds can be used also for swing and position trading of specific sector s or other parts of international financial markets.

I started to study exchange traded funds. The situation in this area also changed in last decade as a lot of companies issues many different exchange traded funds.

What Are ETFs?

We can now trade almost every part of financial markets with some exchange traded funds. My strategies are based on technical analysis of stock market. My most used tools of stock chart analysis are relative strength and stock chart patterns. Learn the ways to trade commodities during a bear market How to select the best ETF for bullish trade Almost every described strategy is based on simple basics of technical analysis. I use this style of analysis for my daily trading activities.

I have created this small tutorial describing the trading of gold exchange traded funds.

ETF Trading Strategies – How to Day Trade ETFs

It is description of a really simple strategy that can be applied to other commodity funds as well. The strategy uses simple relative strength analysis combined with chart patterns and other simple technical analysis tools. Such a simple strategies could produce nice regular returns on your trading or investing account.

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