Is there anything you can do to protect the money in your exchange traded funds (ETFs) as the market bounces up and down?
If your money is in an ETF versus a single stock, you’re already on the right road. Murray Coleman for MarketWatch reports that when using ETFs, you aren’t as prone to the risk of market lows and highs as with a single stock. However, those ETFs still need analysis.
Similar to our strategy, some investors rely on technical analysis of ETFs in addition to fundamental analysis. Using technical analysis includes following the trends in price movement, which can be useful during high volatility periods in the market. Setting stop-loss points and having an exit strategy is also important and can help reduce market motion sickness.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.