FundRobot » Indexed Funds » Can someone explain how ETF trading works?

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Old   #1 (permalink)
 
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Default can someone explain etf trading works

I want to know how ETFs work and how i can trade them. I'm doing this thing for class we have 1,000,000 dollars in virtual money and we have to trade ETFs. The first prize is $5000 cash so i want to win. So what are the best ETFs to invest in or trade.

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Default can someone explain etf trading works

if you want to win, buy individual little tech stocks
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Default can someone explain etf trading works

ETF's are mutual funds that are traded like stocks, and they can cover a lot of ground. The answer depends on your timeline, when the contest ends. If it is at year end, then you need some high flying growth funds, or if you think the market will go down then short sale funds. If the contest lasts longer than year end, I would go with US growth type ETF's. There are literally hundreds to choose from.
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Default can someone explain etf trading works

try this one...Guggenheim Solar ETF (TAN)
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Default can someone explain etf trading works

ETFs are mutual funds that are traded on an exchange the way stocks are. If you are a long term investor, which is what you should be, I see no advantage to an ETF over a 'regular' mutual fund whose share price does not fluctuate throughout the day. If you're buying well-managed funds, what do you care if it goes up fifty cents by noon from what it was at opening time? The only people who care about that are the day traders who try to time their buying and selling to make fast profits. More often than not, they make fast losses.

I'm not saying that there aren't good ETFs. There are good ones, bad ones and plenty of mediocre ones, just like there are with the 'regular' mutual funds. What you need to worry about is picking good funds.

Suggesting a couple of good funds isn't going to help you. You're going to have to do the work yourself, because there are others you are competing with who are already doing that work. Try going to Morningstar.com and start working.
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