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Why to Trade Indexes?
The most active ETF (Exchange
Traded Fund) is the Nasdaq-100 Index Tracking Stock (QQQQ), commonly
known as the "Qubes" or "Cubes". The Cubes track the top 100
non-financial stocks of the NASDAQ. S&P Depositary Receipts (SPY),
commonly called "Spiders," track the stocks of the S&P 500. The
"Diamonds" (DIA) track the 30 stocks of the Dow Jones Industrial
average.
- Less Capital Investment:
You won't need to purchase a mutual
fund or an assemblage of stocks to get good performance from an index.
You can buy the index directly as easily as a stock, with low
commissions, and no need to worry about load!
- Less Volatility: By their nature the indexes are much less
volatile than the stocks they represent, as they are an 'average' of
many stocks. Therefore one doesn't need to worry about the news and
fluctuations of many individual stocks.
- Many Derivatives: When trading an index, you not only get
the ability to trade index share ( SPDRs, QQQQ, Diamonds) but you can
also trade index options and index futures. Index options and futures
carry far more risk, and of course more gain, but are not as volatile
as an individual stock.
With Index Shares (ETFs) you have a wide range of
investment opportunities:
-
An
entire portfolio of stocks in a single transaction
-
Ability to buy on margin
-
All
ETFs may be sold short even on a down tick (i.e., a last sale price
lower than the preceding last sale)
-
Buying
or selling throughout the trading day unlike mutual funds, which are
priced daily at 4 p.m.
-
Lower
costs for investor affordability
-
You
can purchase as little as one share
-
No
high management and sponsor fees
-
Opportunity for dividends
-
Ease
and convenience
-
Tax
efficiencies
-
Instant exposure to a diversified portfolio of stocks
Technical Analysis
- volume based technical analysis for major US indexes and Exchanges. The
proprietary technology allows fast react on market changes and make an
informative and profitable decision.
Options Trading
- options trading has never been easier with advance and simple to use options
trading system that could be autotraded by major online brokers.
Trading System
- Most popular online trading systems for ETFs, QQQQ and SPY options, index
tracking mutual funds and uncovered options.
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