Learn the top benefits of ETF Trading

April 25th, 2017 by VantagePoint Software

Exchange Traded Funds

The stock market is many things to many traders. Simply speaking, it’s all about choices. Not only choices traders make when making a trade, but the choices made on what to trade. Stocks, options, forex and futures are all trading vehicles. But for many, the risk is too high or the payoff is not high enough to draw interest. In the middle are Exchange Traded Funds (ETFs), a trading vehicle that is relatively low risk with a payoff that is often quite substantial. With ETF trading, traders get the benefit of owning a mutual fund without having to pay the expensive fees or abide by time-limit rules.

What are ETFs?

As defined by Investopedia, An ETF is a security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like common stock on the stock exchange. ETFs experience price changes throughout the day as they are purchased and sold. ETFs have higher daily liquidity and lower fees than mutual fund shares. This makes them an attractive alternative for individual investors.

Benefits of Trading ETFs

Traders are not interested in the net asset value of an ETF. Just like common stock, they are interested in the current and future daily price. Here are the top 3 benefits to ETF trading:

  1. ETFs experience price changes throughout the day so traders can set up a trading plan as if they were any other vehicle. Traders can sell short, long, buy on margin, and can purchase as little as one share.
  2. ETFs typically have higher daily liquidity and lower fees than mutual fund shares. This makes ETF trading a solid alternative for traders who like to spread out the risk.
  3. ETFs are no different than other asset-based markets. You pay a commission to your broker just like any regular order. However, many brokers have started to offer zero-commission trades, which makes ETF trading even more appealing.

ETFs have worldwide reach

Another advantage to ETF trading is that they are globally traded including markets in Canada, China, the United Kingdom, Japan, Brazil, Germany and Hong Kong.

With its cutting-edge and patented technology, VantagePoint trading software mines global market data based on intermarket analysis and applies the pattern recognition capabilities of Artificial Intelligence to produce proprietary, leading technical indicators that look ahead, not backwards for the ETFs you trade. In our interconnected global trading world, this is a huge asset!

Let’s analyze the impact of oil. Although the profits earned by trading the oil futures are highly sought after, futures trading isn’t for everyone. The capital requirements, volatility, and the expertise required to trade the futures markets makes ETF trading a more suitable option for stocks traders. ETFs give traders ability to capture profits with oil futures while trading them like a stock.

Oil ETF

Notice how VantagePoint indicated both uptrends and down trends in the ETF United States Oil (USO) before they occurred. By utilizing Artificial Intelligence to analyze the impact of global markets, VantagePoint has the ability to combine past price data with predictive data giving traders the opportunity to gain 30% profit in two short months.

If you’re looking for a way to diversify, trade one-on-one, and get a low cost for the trade, consider ETF trading. Put the revolutionary power of AI to work for you.

Let VantagePoint help you predict the best ETF trades for your portfolio. 

Apply VantagePoint’s forecasting capabilities to your first (or next) ETF trade and ensure your timing is on the money, not after it.
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Make Money in a Declining Market

January 29th, 2016 by VantagePoint Software

It’s one of the most common questions we get. “How can I make money when the market is going down?”

make money

 

 

The truth is simple: there’s no such thing as a bad market. There is, however, bad information and if your current trading strategy is lagging the market, well then it’s going to be very difficult if you don’t see these declines coming.

That being said – our customers are finding plenty of opportunities to make money in these down markets. We share their strategies below.

Here are two ways to make money in a declining market:

Selling Short

Smart traders know that the market is a two-way street and that you can trade from the short side. VantagePoint’s forecasts provide insight 1-3 days in advance. With that information, traders can take a short position and actually make money in a declining market.

However, not every trader is comfortable with this technique. No worries, there’s another way.

Go Long on Inverse ETFs

“For every action, there is an equal and opposite reaction.”

When a market is declining, there are inverse ETFs that will be going up. VantagePoint makes it easy to scan for opportunities and find these opportunities ahead of time.

Are you feeling anxious in the market? Why not adapt a strategy that has been consistent and accurate at forecasting markets and helping traders make money for over 25 years.

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After Market Trading: How to Be Profitable

October 23rd, 2015 by VantagePoint Software

after market trading

Whether you are an active day trader who can’t get enough action during the six and a half hours the stock exchanges are open or an investor looking for new profitable opportunities, after market trading offers an attractive option. The after-market can be especially profitable for traders who have an added technological edge, like VantagePoint Intermarket Analysis Software.

After Market Trading Defined

The stock markets have gone through many changes, from the old days of hand writing trades on chalk boards to the high speed electronic networks of today. Still, in the recent history of the exchanges, most traders could only buy and sell stocks during the regular business hours of major stock exchanges. For most US Exchanges (NYSE, NASDAQ,), regular business hours is typically defined as 9:30 AM – 4:00 PM Eastern Time. Trading before and after regular exchange hours first became available for large institutional players in the early 1990s.

Today a number of electronic trading networks (ETN) allow all investors to keep trading even when the big money players have stopped participating. Nearly all the major online brokerages and full-service brokerage firms will allow you to enter buy and sell orders for stocks to be executed after the exchanges close. Some may charge extra commissions and fees for after hours, but not all, so you’ll need to check with your broker.

However, with any investment there are inherent risks. Here are a few risks involved with after market trading:

  1. Increased volatility. While AAPL, NFLX, GOOG and the other names should be okay to trade in the after-market, for stocks with limited trading activity, you may find greater price fluctuations than you would have seen during regular trading hours.
  2. Lack of liquidity. During regular trading hours, it is easy to match buyers and sellers as there is sufficient interest on both sides of the market. During after-hours, there may be less trading volume for some stocks, making it more difficult to execute some of your trades.
  3. Bigger bid ask spread. Less trading activity could also mean wider spreads between the bid and offer prices. As a result, you may find it more difficult to get your order executed or to get as favorable a price as you could have during regular market hours resulting in slippage. 

VantagePoint Provides an After-Market Edge

Considering the inherent risks, you need a tool to help you find profitable trading opportunities in the after-hours. VantagePoint can help as it forecasts the big trending or gap moves in a stock that often happen in the after-hours market due to an earnings announcement or other important news.

How can VantagePoint do this? By using intermarket analysis and a neural network process to find hidden patterns and relationships between markets, VantagePoint’s proprietary indicators provide short-term trend forecasts that anticipate trend changes. This process provides a unique perspective on markets that uses foresight, instead of hindsight, allowing you to find profitable opportunities if you are after market trading.

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ETF Traders Cash In as Chinese Markets Rally

April 22nd, 2015 by VantagePoint Software

Recent market reforms and the 7-year high in China have given global markets a major boost over the last few days. There’s no denying that changes in one market have a major impact on what happens in another.

chinese markets

Today we take a look at how traders like you can use VantagePoint’s patented Intermarket Analysis and Trend Forecasting to analyze the relationships across markets and get a head start on major trend movements.

In the video above we show you how to improve you ETF trading with 3 recent forecasts from VantagePoint that demonstrate how $SPY $FXI and $PGJ were all brilliant moves for ETF traders.

VantagePoint forecasted an upward trend in the $SPY back on April 6th, giving our customers a 4-day head-start on the 11-day trend that resulted in a $2.56/share profit. The predicted Neural Index gave traders the confirmation they needed to confidently take that trade.

The Chinese ETF $FXI was forecasted to make a move upwards back in mid-March, giving traders a 5-day jump on the market. That 25-day trend resulted in profits over 22%. If your current trading style does not involve the level of Intermarket Analysis that this software is capable of then stop what you are doing, pick up the phone, and be ready to change your life.

We also visit the recent forecast for $PGJ which increased 15% over the last 22 days. It is these direct and indirect market correlations and the ability to properly analyze each and every one of them that allows serious traders to make serious money. Are you seeing impressive results and returns like this? Tell us in the comments below.

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