4 replies to this topic

[LongJohn]

I'm just trying to learn how the game is played......so far the tuition is pretty steep. My question is this: What are the "pros and cons" of using the ProShares ETFs (i.e. QLD, PSQ, QID for Nasdaq & SSO, SH, SDS for S&P, etc) as opposed to owning "real" shares of a company's stock or buying put / call options? The ETF's seem simpler to me, so there is probably some downside to doing it that I haven't thought about. Thanks......

[Rogerdodger]

I'm just trying to learn how the game is played......so far the tuition is pretty steep.

Trade smaller or paper trade if you are consistently losing. That will lower the tuition.
There is LOTS to learn and a long learning curve.
No need to go broke learning.

I like trading the ultra sds, sso, qid, and qld.
Many of the other etf's have low volume and bigger spreads.
ETFs are market bets whereas individual stocks are more a bet on a company's prospects.
I think GOOG or APPL have moved more than QQQQ over the last few months.
Some will hold these individual stocks in a long position for tax reasons but then hedge with the market ETFs.

PS: Be sure to know when these babies go ex-dividend.
Lot's of folks got a surprise in December.
Yahoo charts show the dividend dates.

Edited by Rogerdodger, 24 July 2007 - 06:47 PM.

[vitaminm]

I'm just trying to learn how the game is played......so far the tuition is pretty steep. My question is this: What are the "pros and cons" of using the ProShares ETFs (i.e. QLD, PSQ, QID for Nasdaq & SSO, SH, SDS for S&P, etc) as opposed to owning "real" shares of a company's stock or buying put / call options? The ETF's seem simpler to me, so there is probably some downside to doing it that I haven't thought about. Thanks......

Trade popular Rydex Funds and save commission on trades.


QLD=2.QQQQ / Buy 200 shares of QQQQ instead of expensive QLD

http://finance.yahoo...&s=qqqq qld qid

[Drano]

But you can't trade in and out of Rydex funds at any time during the day, as you can with the ETFs. I'd rather pay a few bucks to a discount broker, and be able to get in or bail out exactly when I want to, instead of being trapped and able to open or close a position only at the beginning or end or day.

[vitaminm]

But you can't trade in and out of Rydex funds at any time during the day, as you can with the ETFs. I'd rather pay a few bucks to a discount broker, and be able to get in or bail out exactly when I want to, instead of being trapped and able to open or close a position only at the beginning or end or day.

One may look at annual commissions + margin interest cost+ Extra paper work+Irs reporting + day trading stress+ monthly statements + Interest on account

It's personal choise.

Why not just trade YM?

Edited by vitaminm, 25 July 2007 - 12:05 AM.