not even sure if technical analysis would fully work on ETFs as there are so many factors in play in underying stocks , they could be doing anything
UnknownUnicorn1081681
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@virtualtechie11, Your reasoning is very much plausible as fundamental analysis too does play a greater role in this sector with the current affairs, especially with it being an ETF too. There are a lot of variables to account for in the aforementioned sector. I thought I would post as I'm sure many others may come to the consensus on trading the ETF perhaps alongside both a fundamental and technical analysis standpoint. I appreciate your time commenting.
UnknownUnicorn1081681
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@virtualtechie11, On second thoughts you mentioned you were not sure whether technical analysis pertaining to ETFs could be applicable. I am here to inform you, it is very much possible to a certain degree, of course, irrespective of "Underlying" factors in play. In fact, not only has it been in practice and proven to work obviously with a certain degree of uncertainty, due to the irrational markets we so live in, just like trading any common stock as you would do. I would like to point you to a book in particular of many others called "Trading ETFs: Gaining an Edge with Technical Analysis", in this book the author details why ETFs can both be beneficial for intraday and swing trading, with proven strategies and examples. Also, this is to say nothing of the most well-known ETFs out there, the S&P500, for example, we can observe the fundamental analysis plays a great role during times of recession, as people would rather pull out of their stock market-related investments and posses fiat currency through liquidation or commodities. However, markets even that of an ETF can be predicted to a certain degree just like any other common stock, through a multitude of indicators which in turn you can draw a prediction of its movement, through volume, volatility, and its resultant market psychology.
virtualtechie11
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@BornSinner, so for the ones which track indices, i can understand, but for the ones that track multiple shares in a sector i am not too sure.
on intraday not (i am a new swing trader \ investor) , i am finding it hard to trade etfs on short time span as there is not enough moment, but yes in very volatile markets oppurtunity do comes, like we had it when ftse touched 5600 (8% drop approx) and then 5700 recently (7%) drop , but otherwise dont think there dont seem to be enough strech
i think stocks are better for that, i was trying to shy away from stocks due to GAPS but think, as long as i manage my risk properly , it might be ok..
UnknownUnicorn1081681
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@virtualtechie11, I agree with proper risk management you will be okay, you'll have a lot greater success rate if you follow a strategy of some sort with risk management. I prefer to stick to common stocks too, I've only posted the ETF above, as I'm looking for a good enough position to enter in for a long position (as in buying and holding). Good luck with your journey, have a look at dividend stocks too, they can be quite rewarding if you're a long term investor, you may be aware of this already but thought I would mention it. A really good website for this is "Simplysafedividends.com", and seeking alpha. You can grab a free two week trial on simplysafe.., without any upfront costs.
virtualtechie11
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@BornSinner, by common stocks, do you mean blue chip like microsoft, bp, target , sainsbury etc?
i will have a look at the subscription
UnknownUnicorn1081681
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@virtualtechie11, Pretty much exactly that, blue-chip stocks included. The word common stocks often used in the US can also be used interchangeably with terms like equity shares or ordinary shares if you're in the UK.