Thread: Day Trade ETF's?

The only type of day trading I would even consider would be Options of high volume stocks, and ETFs, as the options are almost, if not just, as liquid as the stock; and you can get significantly higher returns. Though, that also goes with losses.

It's not too bad of an idea... but, personally, I'm not a big fan of day trading. I didn't get into investing to have another job

Nothing wrong with daytrading them, liquidity is good on a lot of them.

If you find yourself swing trading them though, you'll find that you'd be better off buying the unleveraged ETF on margin. The reason is that they don't exactly simulate 2X, so you won't be affected by all the slippage.

If you are trading in an IRA, you don't have the option of buying on margin, so there isn't really another choice if you want to go 2X short.

I don't think the volume is there yet for the new 3X leverage funds. Should be interesting to see how they evolve.

I day/swing trade the ETF's several times a month when I see a set-up ... in fact, today I closed out of one position (DBA) and had it just for 2 days. Made a nice $1,200. Normally I hold for a longer period and a bigger gain, but I had $1000 (10 hundred dollar bills in cash ) in front of me at the time which altered my trade exit.

When I physically can touch and see the money, versus just some digital mirage on a computer screen, selling the unrealized gains into realized, is not so hard.

As for your question, I think it is great time to be trading ETF's and I wish I had more time to do so. I seem to win 80% of my trades when I put the time into it. I've been watching the DXD for sometime but haven't started trading it yet ... I like to watch behavior first.