Sheila Olson

Guerilla trading sounds very exotic, suggesting a nimble, dangerous warrior sneaking in to make a quick and devastating attack before disappearing into the jungle. Actually, that’s a pretty accurate description of a guerilla trader. Guerilla trading is both a mindset and a technique that utilizes ultra-fast, low-risk trades to capture profit and exit just as quickly. A guerilla trader’s trading time frame makes day traders look like buy-and-hold investors. It is even shorter than a scalper’s timeline. Only high-frequency trading systems are quicker than the guerilla trader; a guerilla trader’s time frame rarely lasts longer than a minute or two. Defining characteristics of a guerilla trader: Typically makes 20 or 25 trades in a single session; low commissions and tight spreads are essential for this style of trading Master of technical analysis, typically operating with tick or one-minute charts Low-risk trades, will trade for a 20-pip profit Generally avoids periods of extreme volatility when the risk of loss is highest Prefers forex market, although will trade in other markets Well capitalized with cash he can afford to risk The key to successful guerilla trading is mitigating risk and limiting the potential for loss in every trade. You must set profit and loss targets for every trade and set automatic stop-losses to remove emotion from your trading decisions. In fact, you must trade with a level of emotional detachment to have any success at all in guerilla trading. Guerilla traders tend to trade the trend rather than betting on a reversal and risk runaway losses. They also avoid averaging down, preferring to cut losses quickly rather than trying to recover a trade gone bad. If you are interested in guerilla trading, start with a highly liquid market such as forex and still to well-known currency pairs. Practice with a simulator or demo account until you get used to the hyper-fast pace of guerilla trades. Develop a trading strategy and plan that focuses on low-risk, low-profit trades and even smaller losses. Be fanatical about mitigating risk with stop-loss protection—and only ever risk capital you can afford to lose, especially in the beginning.

Automated trading systems used to be reserved only for institutional traders, but they have made their way into the retail trader’s toolbox, as well. These algorithmic-based mechanical trading systems allow traders to specify the precise conditions under which to enter and exit a trade, removing human error (assuming they’re programmed correctly). While automation might seem to be an obvious good, there are both pros and cons to automated trading systems. Here’s a look at the ones to keep in mind before you decide to automate your trades. Pros You can backtest your trade strategy on historical market data to see if it does what you want it to do. This is also helpful in predicting returns once you implement a plan you’ve tested. The market is driven by emotion, but automated trading systems take the emotion out of your trading decisions. That is especially helpful if you’re the type of trader who has a hard time following your own trading strategy. Similarly, automated trading systems enforce discipline, especially in a volatile market. Traders, even experienced ones, can be lured into keeping a position open longer than prudence requires, in an effort to squeeze out a little extra profit or recoup an uncomfortable loss. If you’ve let emotion override discipline, you know how disastrous this can be. These systems virtually eliminate order entry error and speed up the order process. This is especially helpful for day traders. You can diversify your trading by implementing multiple strategies across multiple accounts and instruments. Automated systems can manage far more than their human trader counterparts. Cons Automated trading systems are generally linked to a direct access broker, which requires programming based on that broker’s specific platform. Some platforms have built-in “wizards” to build a plug-and-play trading strategy, but these are often insufficient for a trader’s needs. Unless you’re very comfortable developing your own software, you’ll need to work with a programmer, which brings its own set of problems, including cost and bugs, since the program will be untested. Backtesting is a great idea in theory, but too often, a trader will develop a plan that is optimized based on historical data. This extraordinarily fine-tuned plan results in profitable trades nearly all the time in backtesting but is an absolute disaster once it’s applied to a live market. It’s always a good idea to stick to low-value trades while you iron out the flaws in your automated trading plan. You still need to monitor your automated trading system; it’s not something you set and forget. Many things can go wrong—connectivity issues, a computer crash, even irregularities in the market that aren’t factored into your trading plan. If you opt to buy an off-the-shelf system, keep in mind that many are designed to work best in certain markets or with certain trading strategies. Do your research and check reviews and testimonials before you buy. Know that the automated trading systems market is rife with scams, so buyer beware.

Volatility is especially important for day traders; it’s hard to make money without frequent price fluctuations. But volatility is a two-edged sword—trades can go against you quickly. For that reason, it’s important to have an arsenal of technical indicators to help you tame the volatility beast. Volatility indicators are unique in that they measure how far a security has moved away from mean directional value. A high volatility stock makes big moves from its average direction, while a low volatility stock stays close to the moving average. Volatility indicators can be lumped into two main categories: Oscillators and channels. Oscillators move between two extreme values, typically 0 and 100, and build out a trend using the results. As long as the security trades within the established range, the oscillator’s signals are generally reliable, but false signals are a common pitfall when oscillators are used during a breakout. Channels are overlays on the main trading chart that use volatility to predict the range in which the price should remain for a period of time. The theory behind channels is that when a price has moved too far from the average, traders react with moves in the opposite direction to bring the price back within range. Of the oscillators, ATR is perhaps the most accurate volatility indicator. It is a pure volatility indicator and not a reflection of price. Although it doesn’t always point to a trend, it does reflect the nature of the market as a whole. It is a lagging indicator and may rise and fall in either an uptrend or a downtrend. Generally, ATR rises as the market consolidates into a definable trend, but you may actually see it fall when prices form into a trend. Of the channel variety, two of the more popular are Bollinger Bands and Keltner Channels. Bollinger Bands create an envelope using the SMA and drawing +/- lines at two standard deviations. Keltner Channels use the EMA and ATR as the basis for the channel width. Traders using Bollinger Bands watch for the squeeze, a period of low volatility in which the channel narrows, constricting the SMA. This usually presages a period of high volatility in which to enter trades. When the bands are wide, a period of low volatility is usually forthcoming, signaling an exit. Keltner Channels are generally smoother and narrower because ATR is less volatile than the SMA. As a trend following indicator, they are used to predict breakouts. A surge above the upper channel implies extreme strength, while a drop below it implies extraordinary weakness. Volatility indicators form the basis of many profitable trading strategies, but you should never rely on volatility alone to make trade decisions.

A smart contract, or crypto contract, is a self-executing digital contract that resides on the blockchain. The contract is converted to a piece of code, and the terms are automatically executed once the defined conditions are met and verified by the network. It sounds more complicated than it actually is. Imagine an inventor who needs to find backers for a new product he wants to bring to market, but he doesn’t have a way to promote his invention or collect money from interested investors. He goes through a platform such as Kickstarter and sets up a campaign for $100,000. In exchange for a cut of the cash, Kickstarter promotes the campaign, collects and holds the money, and if the goal is reached, pays it to the inventor. If it isn’t met, it refunds the money to the backers. The role of Kickstarter could easily be replaced by a smart contract with the same conditions. There are four main advantages to smart contracts: They are distributed, which means that the outcome of the contract is verified by and visible to everyone on the network. Smart contracts are virtually tamper-proof. They are immutable, meaning that once created, they cannot be changed. They save money by removing the need for a third-party intermediary, such as Kickstarter in the example above. They are virtually unlimited in what they can do, as long as you can find a programmer to write the code to execute it. A few blockchains currently support smart contracts, but Ethereum is the most well-known. In fact, Ethereum was developed exactly for the purpose of supporting smart contracts. Bitcoin also processes Bitcoin smart contract transactions but has less flexibility outside that. NXT is a public blockchain that has a limited selection of smart contract templates, but you cannot program your own if you don’t see what you want. ICOs are another common use for smart contracts on Ethereum’s network. ICOs are related to IPOs, except that where IPOs are centralized and investment bank-driven, ICOs are decentralized and crowd-driven.

Der Handel mit Billigaktien ist ein riskantes Geschäft. Es gibt zwei Haupttypen von Analysen im Aktienhandel: Fundamentalanalyse und technische Analyse. Wenn es um die niedrig dotierten Aktien geht, sind beide nicht besonders zuverlässig. Es gibt oft sehr wenige genaue Finanzdaten, die öffentlich zugänglich sind, um eine grundlegende Analyse durchzuführen. Zudem sind diese Bestände oft das Ziel koordinierter Kampagnen, um ihren Preis im Rahmen eines Pump-and-Dump-Systems anzuheben. Auch die technische Analyse hat nur begrenzte Möglichkeiten und ist aufgrund der extrem niedrigen Handelsvolumina oft fehlerhaft. Zuverlässige Muster entstehen nur, wenn genügend Aktivität vorhanden ist. Ein Muster, das auf der Basis von 10.000 oder sogar 100.000 gehandelten Aktien gebildet wird, viel weniger zuverlässig sein wird als eines auf der Basis von einer Million oder mehr Aktien. Mit diesen Einschränkungen ist trotzdem möglich, Muster beim Handel mit Penny-Aktien zu identifizieren. Es gibt zwei Hauptarten, um Penny-Aktien zu bewerten: Liniendiagramme oder Kerzendiagramme. Die meisten Händler wählen Kerzendiagramme, obwohl einige die klarere Form eines Liniendiagramms bevorzugen. Welche Sie wählen, ist eine Frage der persönlichen Präferenz. Da Penny-Aktien mit geringen Volumina gehandelt werden, ist es besser, sich auf einfache Muster zu konzentrieren. Die folgenden drei Muster sind leicht zu identifizieren und können aufgrund ihrer Einfachheit auch zuverlässiger sein als kompliziertere. Richtfest Dies geschieht, nachdem ein Preis über einen bestimmten Zeitraum hinweg konstant gestiegen ist und sich dann plötzlich wieder einpendelt und für eine Weile stabil bleibt. Obwohl es sich hierbei lediglich um eine Pause handeln könnte, wird das "Richtfest" wenn es von einem Volumenrückgang begleitet wird, im Allgemeinen als Verkaufssignal interpretiert. Bodenhaftung Dies ist das Gegenteil des Richtfests. Typischerweise erfolgt der Rückgang über einen Zeitraum von Wochen oder Monaten, gefolgt von einer Periode des Seitwärtshandels, die bis zu zwei Wochen dauert. Wenn dieses Muster erscheint, zusammen mit einem Anstieg des Volumens, hat die Aktie eine überverkaufte Position erreicht. Dies geht oft einer schnellen Erholung voraus und stellt somit ein Kaufsignal dar. Kurseinbrüche Dies ist angesichts der enormen Volatilität der Penny-Aktien etwas schwieriger zu erkennen, bietet aber bei korrektem Handel eine gute Gelegenheit, einen Gewinn aus Aktien zu erzielen, die "durch das Netz fallen". Ein Kursverlustmuster für Penny-Aktien ähnelt einem Retracement, einer starken Bewegung in die entgegengesetzte Richtung des größeren Trends. Kursrückgänge erholen sich in der Regel innerhalb weniger Minuten, so dass der beste Weg, die Bewegung dieser dünn gehandelten Aktien zu erfassen, darin besteht, eine offene Order weit unter dem aktuellen Kurs zu halten. Auf diese Weise werden Sie in der Lage sein, einige billige Aktien zu kaufen, auch wenn Sie nicht permanent auf den Handelsbildschirm schauen. Irgendwann erleben die meisten Penny-Aktien einen massiven Umschwung in der Aktionärsbasis. Denn in der Regel haben die meisten Penny-Aktienhändler hohe Renditeerwartungen innerhalb eines relativ kurzen Zeitraums. Wenn der Bestand nicht liefert, stoßen sie ihn auf der Suche nach einer anderen Gelegenheit ab. Das ist günstig und geht einer Konsolidierungsphase voraus, nach der die Preise typischerweise steigen. Wenn Sie einen starken Handel an einem Seitwärtsmarkt sehen, befindet sich die Aktie in einer Akkumulation, was als Kaufsignal interpretiert werden kann.

Robo advisors work well for just about every class of investor. You get professional investment management and advice with an extremely low expense level, generally a fraction of a percent of your portfolio. Even better, there is a robo advisor platform for people just starting out and with very little cash to invest. Here’s a look at some of the most popular ones and their account minimums. Betterment Betterment has no minimum investment to open an account and no minimum monthly deposits. There are no annual account fees, transfer fees, or fees to close your account. Management fees are 0.25% and you get 12 months free management with a qualifying deposit. There’s also a premium option at 0.40% with unlimited phone access to a certified financial planner, but you need a $100,000 account balance to qualify for the premium option. All Betterment customers have unlimited in-app messaging with a financial advisor, however. Wealthfront Wealthfront and Betterment are the two major players in the robo advisor market. Wealthfront requires $500 to open an account, but it charges the same low 0.25% management fee as Betterment. Wealthfront has a no-fee option via Path, its free financial planning tool; you link your bank and retirement accounts and Path helps you put together an investment and retirement plan. Wealthfront has no option for advice from a live financial advisor, but they get bonus points for their low-cost, no-credit-check loan program where you can borrow up to 30% of your account balance. SoFi SoFi is totally free—no management fees, no account maintenance fees, no transfer fees. You need $100 to open an account at a minimum recurring monthly deposit of $20. SoFi is designed for beginning investors and they offer unlimited phone access to certified financial planners at no charge. SoFi operates like a personal financial coach; in addition to financial planning, they offer career coaching, high-interest savings accounts, low-interest loans, and they’ll even help you refinance your student loans. On the downside, at this time, they only offer taxable accounts, so don’t try to set up an IRA or 529 account here. Charles Schwab Intelligent Portfolios Charles Schwab charges no advisory or management fees for its robo advisory service and you get 24/7 access to Schwab certified financial planners, which is a great perk. However, you need $5,000 to open an account and your ETFs will all be Schwab family funds. In addition, all portfolios include a cash component, which means a percentage of your account balance is cash on deposit with Schwab.

If you’ve never worked with a robo advisor before, the process may seem a bit confusing. Unlike other brokerage accounts, when you apply for an account with a robo advisor, you’ll be asked a number of questions about your age, income, other account balances, investment objectives, and risk tolerance. The robo advisor uses your answers to present you with a portfolio or group of portfolios that meshes with your financial goals. These pre-built portfolios form the basis of the robo advisor business model. They are created using the same technology that active fund managers and professional financial advisors use to develop custom portfolios typically containing ETFs. These pre-built portfolios are one of the reasons robo advisor management expenses are so low. Each robo advisor platform has a different number of proprietary portfolios; the exact portfolios and their composition are closely guarded secrets within the robo industry. Betterment, for example, has just over 100 standard portfolios. But your portfolio options don’t end there, since Betterment as well as many other robo advisors allow various customization options. Most new investors are best served by choosing from among the options recommended for you based on your questionnaire. The portfolios are driven by complex algorithms that take into account cost management, tax optimization, risk/return ratios, and other friction points so your money has the best chance of accomplishing your goals. If you don’t like the one presented, you can also change the answers to your questionnaire to see how it affects your recommended portfolio options. Finally, you can also have multiple portfolios within a single account. For example, you might have a long-term retirement portfolio as well as a shorter term portfolio designed to help you accomplish a goal such as buying a new house or paying for a wedding. Most robo platforms give you the option of either messaging or talking via phone with a financial advisor if you have questions about a portfolio recommendation or asset allocation. Some offer these services free of charge, others charge a small fee, so check before you make a call. You also have the option, if you’re not happy with your portfolio recommendation with one robo advisor, of opening an account with another to see how their recommendations stack up. There are many robo advisor options with no account minimum, so you can comparison shop before you decide where to put your money.

Algorithms are the secret sauce in the robo advisor model. They are inherently effective and cost-effective, and unsurprising to anyone living in a technology-enabled world, far less prone to error than human beings. The computer algorithms used in most robo advisor platforms is based on Harry Markowitz’s Modern Portfolio Theory, which is a mathematical framework for creating a portfolio where the maximum return is achieved for a given level of risk. Markowitz won the Nobel Prize in Economics for his work. Robo advisors are successful because they are built on sound research and powered by technology capable of managing and executing millions of error-free transactions a day. This level of performance is simply impossible for a human to reproduce. In addition, most robo advisors include value-added services such as automatic and frequent rebalancing and tax loss harvesting at no extra cost. When it comes to performance, the traditional ETF-based robo advisor model outperforms actively managed funds virtually every time. They tend to follow the market, not necessarily beat the market, but then again, human advisors rarely if ever beat the market, either. Given all that, most people who choose the robo advisor model don’t miss the lack of human oversight over their portfolios. However, if you’re one of the people that likes that level of personal attention, there are robo advisor platforms for you. Betterment and Wealthfront, the two largest robo platforms, both offer packages with access to a human financial advisor. Major investment firms such as Fidelity and Charles Schwab also offer a hybrid robo advisor model with human financial advisor oversight, although they tend to require a higher account minimum to access these services. Ultimately, if you’re simply looking for something or someone to manage your investments, a robo advisor gives as good as, if not better, service than a human financial advisor. On the other hand, if you’re looking for financial planning services, a robo advisor will likely disappoint. For that, you’ll definitely want a human financial advisor.

As of early 2019, the Securities Exchange Commission hasn’t approved any crypto ETFs for the U.S. market. There is one Bitcoin-based trust, the Grayscale Bitcoin Investment Trust (symbol GBTC) that is quoted on the OTCQX and is eligible to be held in certain IRA accounts and individual brokerage accounts. Cryptocurrency ETFs have been hotly debated at the highest levels, especially since the CFTC approved crypto futures, which were picked up by both the CME and the CBOE. It seems logical that a crypto ETF backed by crypto futures would be a shoo-in for regulatory approval in the U.S., but so far, that hasn’t been the case. However, things may be changing. One SEC commissioner issued a stern letter of dissent after the SEC declined to approve the much anticipated Winklevoss twins’ Bitcoin ETF. Commissioner Hester Peirce came out in favor of cryptocurrency, believing it is ripe enough for the U.S.’s well-regulated markets. With “Crypto Mum” Peirce on their side, many crypto proponents believe approval is near for crypto-backed assets. Many investors interested in cryptocurrency view the ETF as the ultimate asset class for getting into the crypto market. The theory is that crypto will respond the same way gold prices did when gold ETFs were introduced to the market in 2010. Gold experienced a huge rally at the time, and many traders and speculators would love to see a similar crypto boom. That doesn’t mean retail investors are locked completely out of the crypto market. There are a number of SEC-approved blockchain ETFs currently trading on U.S. exchanges—the Reality Shares Nasdaq NexGen Economy ETF and the Amplify Transformational Data Sharing ETF come to mind. You can also find crypto ETNs on the European exchanges. A Bitcoin ETN trades on the Nasdaq Stockholm exchange, as does a recently added Ethereum ETN. There’s an additional currency risk, however, since the notes are traded in Swedish krona. The management fees are a sobering 2.5%, which is another thing to keep in mind. Of course, there are a lot of non-SEC approved crypto products through providers like CoinJar, Coinbase, Grayscale Investments, and XBT Providers. Keep in mind, however, that the admission price for these crypto-backed index funds is steep—$50,000 is common, with some requiring an initial investment of $250,000 or more.

Robo advisors really began to take off after the financial crisis of 2008. The two main stand-alone robo advisors, Betterment and Wealthfront, led the pack until Vanguard and Charles Schwab got into the robo advisor market. Experts expect some $800 billion to flow into robo advisors - exceeding $1 trillion under management by 2020. Given the size of the robo advisor market, and the astonishing interest in cryptocurrency, it’s not surprising there are now robo advisors specializing in the crypto niche. What is surprising is that it’s taken so long. A San Francisco start-up called New Wave Capital is the first robo advisor specializing in cryptocurrency. They believe that cryptocurrency shouldn’t be reserved for accredited investors with $250,000 or $1 million to invest. New Wave has a manageable $1,000 minimum investment and it offers 12 different coins: Bitcoin, Bitcoin cash, ether, Ethereum classic, golem, Litecoin, Numeraire, OmiseGo, ripple, stellar lumens, TenX, and ZCash. Its algorithm is designed using a different risk tolerance scale based around the unique crypto market. If you have a low-risk tolerance, your account is weighted more toward bitcoin. Higher risk gets you into the more volatile cryptocurrencies. The firm is registered with the SEC and charges 0.25% for its management cut. Other companies, such as Automata and Empirica, are also entering the robo advisor cryptocurrency niche, and Grayscale Investments offers broad crypto exposure with its Digital Large Cap Fund, but it’s definitely not considered a robo advisor. There are also automated investment options focusing on crypto that fall somewhat short of a true robo advisor platform but may appeal to crypto investors. Circle now has a “buy the market” feature that spreads your deposits among its list of supported currencies, which currently stands at seven. Robinhood launched a Robinhood Crypto platform that allows users to buy any of the five digital currencies it supports, Robinhood Crypto isn’t widely available. Currently, it’s only available in 17 states, and again, it’s not a robo advisor service.

Robo advisors are becoming hugely popular with investors of all wealth and experience levels. It’s estimated that robo advisors will have $2 trillion under management by 2020, up from just $60 billion five years ago. People are drawn to robo advisors because they offer professionally pre-built portfolios, automatic portfolio rebalancing, and tax-loss harvesting for an extremely low price compared to other managed investment options. Investors select the portfolio that most closely matches their investment objectives, arranges automatic deposits, and the advisor takes it from there. It’s a low-maintenance way to invest and grow your savings. However, as the robo advisor industry has grown, some have added new features and services to attract more advanced and high-net worth investors. Customization is one such popular feature, but “customize” has different meanings depending on the robo advisor platform you choose. Betterment, for example, recently launched the flexible portfolio option, which allows you to adjust the weighting of the individual asset classes within the pre-built portfolios. Although it was designed as a service for advisors who want to bring clients into the Betterment platform, the company is making it available to retail investors with at least $100,000 in their account. Betterment also built in guardrails to alert investors who make asset allocations resulting in high levels of risk or poor diversification. Another company, M1 Finance, offers both pre-built portfolios known as Expert Pies and entirely custom portfolios. Once you select your portfolio investments, the platform manages all your trades and automatically rebalances your portfolio based on your settings. Although the customization option is appealing to some investors, it also has drawbacks, especially for novice investors. Robo advisors use the same technology used by high-end fund managers to select and allocate assets within each of the portfolios. The portfolios are carefully built to help you achieve your financial goals at the lowest cost, and the robo advisor design discourages the type of emotional and undisciplined trading that sabotages account balances. When you remove those built-in safeguards by allowing customization, you run the risk of much lower returns and higher fees, depending on how your robo account is structured. If you are a more sophisticated investor and want more control over your portfolio, you may do better with a hybrid-style advisor or a DIY portfolio.

Robo advisors have been on the scene since 2008, the year of the financial crisis. The first big-name advisor, Betterment, was launched in 2010 by Jon Stein, a young fintech entrepreneur. The growth in robo advisors has been pretty spectacular; in 2015, there were $60 billion in assets under robo management, and the industry is on track to have $2 trillion under management by 2020. Prior to robo advisors coming online, newbie investors could either take a DIY approach to managing their portfolio or hire a financial advisor to do it for them. Neither of those options were especially beneficial for young investors just starting out; they lacked the knowledge and quite often the time to do it on their own, and their portfolios were too small to interest most professional advisors. Robo advisors stepped into that gap, and new investors flocked to them, which is probably why even major firms such as Vanguard and Fidelity have gotten into the robo advisor game with hybrid products to appeal to young and inexperienced investors. From a practical standpoint, robo advisors make a lot of sense for an investor just starting out. They offer a low-cost way to build a diversified portfolio designed to meet their personal investing goals. Most robos offer a variety of portfolios to choose from, with many offering options to customize. Some even offer unusual asset classes to further diversify and capture profit from markets that may be difficult for novice investors to break into. There are many other reasons new investors love robo advisors. Most are mobile-friendly and function intuitively; it’s very easy for a new investor to open an account and start investing. You can choose to set automatic recurring deposits—but it’s equally easy to transfer over an extra $50 to boost your account. Most have no account minimums or minimum deposit requirements, putting professionally managed portfolios within reach of just about any investor. They also handle things like automatic portfolio rebalancing and tax loss harvesting, which are outside the skill set of most retail investors. There are, however, potential disadvantages to investing by algorithm. The industry is relatively new and hasn’t operated in a bear market; robos have been functioning in the context of the longest bull market in history. It remains to be seen whether their portfolios will hold up as well as one managed by human advisors. One final thing to consider is the growth in affordable fee-only financial advisors. In the past, new investors couldn’t typically avail themselves of human advisors who operated on a percentage basis for portfolio management. Now a new investor can pay a relatively low flat fee to get personalized investment advice, which may appeal to those who aren’t quite ready to go robo.

The major exchanges have normal market hours of 9:30 am to 4 pm Monday through Friday; this is when the vast majority of trades are made. But if you don’t have time to watch your screen and trade during the day, you can trade after-hours on ECNs (electronic communications networks). ECNs operate independently from the exchanges to match buyers and sellers when the exchanges are closed. Before the emergence of ECNs, retail traders couldn’t get in on the after-hours action. There are actually three trading sessions (all times are Eastern Standard): The regular market (9:30 am to 4:00 pm) After-hours market (4:00 pm to 8:00 pm) Pre-market (4:00 am to 9:30 am) Although you’re technically trading off the exchanges, the process works exactly the same. The main thing you should keep in mind about after-hours and pre-market trading is the significantly lower volumes. Lower trading volumes mean much higher volatility, because so few trades, relatively speaking, are taking place. There may also be liquidity issues, in that you may not be able to find a trading partner to execute your trade. Because of the volatility and price swings, you must be diligent about using limit orders when you are trading outside regular market hours. Although volatility is probably the most noticeable price effect in after-hours trading, you may also see price movement as a result of breaking news or new information about an equity released after the market has closed. Watching price movements is a good way to gauge the way the market will respond on the next day’s opening, which may position you to make profitable trades. However, the next day’s opening price may not necessarily reflect price changes in after-hours trading. For example, if trading activity after-hours drives up a stock’s price on rumors of a potential merger, new information rebutting the rumor may surface before opening bell and selling pressure may drive the price down well below the highs in after-hours trading. In other words, don’t rely on after-hours and pre-market price movements to predict prices once the market opens on the next trading day. After-hours trading is definitely riskier, but if you go into it with eyes wide open, and take appropriate steps to limit your losses, you may make some very favorable trades.

Trading breakouts is a strategy for getting in on the early stage of a trend. The general principle is to buy when the price breaks high and sell when it breaks low. Within the trading community, breakout trading has mixed reviews. Some believe it’s a reliable strategy with limited downside risk and others believe the risk of false breakouts outweighs the potential benefits. Generally, a breakout is defined as a price move outside of well-defined levels of support or resistance accompanied by a spike in trading volume. One without the other isn’t a true breakout. Once a breakout is identified, the theory goes, a large price swing and new strong trend will likely follow. The most common price pattern breakouts include the flag, and the range or channel breakout. The first step is to find a good candidate for breakout trading. Support and resistance should be well tested with multiple touches to establish validity. The longer these levels have remained in place, the more explosive the breakout should be once it occurs and is confirmed. Timing the entry point is straightforward: Once the price closes above resistance, take a long position. If it closes below support, go short. Again, if there is no accompanying increase in volume, the movement is more likely a fakeout than a breakout, so wait for confirmation by a spike in trading volume before taking a position. It’s always a good idea to set exit points to either take your profit or limit your loss, especially in the face of a failed breakout. Traders who are skeptical of breakout trading and the risk of false breakouts should avoid the channels and range breakouts and focus more on patterns like the flag or triangle. In day trading, flags and triangles have a better risk to reward ratio and cleaner breakouts. Do be alert to failed breakouts, when a stock retests a prior support or resistance level and falls back through. At this point, you’re best off taking your loss and looking for a better candidate.

Trading penny stocks is a risky business. There are two main types of analysis in stock trading: Fundamental analysis and technical analysis. When it comes to penny stocks, neither are particularly reliable. There is often very little accurate financial data publicly available to do fundamental analysis, and these stocks are often the target of coordinated campaigns to pump up their price as part of a pump-and-dump scheme. Even technical analysis is limited and often faulty due to the extremely low trading volumes. Reliable patterns only emerge when there is enough activity to fill them out. It must be stressed that a pattern formed on the basis of 10,000 or even 100,000 traded shares will be much less reliable than one based on a million shares or more. With those caveats, it is still possible to identify patterns when trading penny stocks. There are two primary ways to evaluate penny stocks: a line graph or a candlestick chart; most traders choose candlestick charts, although some prefer the absence of clutter in a line graph. Which one you choose is a matter of personal preference. Because penny stocks are traded at such low volumes, it’s better to focus on simple patterns. The following three patterns are easy to identify and, due to their simplicity, may also be more reliable than more complicated ones. Topping out This happens after a price has consistently climbed over a period of time and then suddenly levels off and may even trade sideways for a while. Although this could simply be a pause, if the topping out pattern is accompanied by a decrease in volume, it is generally interpreted as a sell signal. Bottoming out This is the opposite of the topping out pattern. Typically, the decline takes place over a period of weeks or months and is followed by a period of sideways trading lasting up to a week or two. When this pattern appears, along with an uptick in volume, the stock has entered an oversold position. This often precedes a quick recovery and thus represents a buy signal. Price dips This is a bit more difficult to spot given the huge volatility in penny stocks, but if traded correctly, offers a great opportunity to take a profit on shares that “fall through the cracks.” A penny stock price drop pattern resembles a retracement, or a sharp movement in the opposite direction of the larger trend. Price dips usually bounce back in a matter of minutes, so the best way to capture the movement on these thinly traded stocks is to maintain an open order well below the current price. That way, even if you’re not actively monitoring your trading screen, you’ll still be positioned to snap up some cheap shares. At some point, most penny stocks experience a massive turnover in shareholder base. This is because, as a rule, most penny stock traders have high expectations for returns within a relatively short period of time. When the stock fails to deliver, they dump it in search of another opportunity. This is actually good and precedes a period of consolidation after which prices typically rise. When you see heavy trading on a sideways market, the stock is under accumulation, which can be interpreted as a buy signal.

When watching stock charts it’s tempting to think of the market as a logical, numbers-based phenomenon, especially if you’re a technical trader. But the fact is, the market is emotion-driven all the way. Even Benjamin Graham, the father of value investing, said: “In the short run, the market is a voting machine.” Market sentiment is just another word for the mood of the market, its overall emotional outlook—that the market is fueled by emotion is the main reason you have opportunities to trade. A stock price is rarely reflective of its fundamentals, but more a reflection of the market’s emotions, or sentiments, about it. Market sentiment isn’t monolithic, either. Even in an overall bullish market, there will always be bearish sectors. When equities decline, precious metals, especially gold, will invariably rise. Money flows into “safe haven” investments or currencies is an obvious sign of bearish market sentiment. Once the market begins to move, one of two trading emotions come into play: Fear and greed. If you can spot their emergence, you have the potential for profitable trades. For example, if XYZ has been trading between $50 and $53 for a time, and, after breaking through resistance a few times, it breaks out significantly, greed may be taking over. Conversely, if XYZ tests support and then breaks through, falling precipitously, fear has entered the market. There are several market sentiment indicators to incorporate into your trading strategy, but volume is perhaps the most obvious sign of market interest. If the price of XYZ is rising, but volume is falling, sentiment is weakening. Similarly, when the stock is under accumulation with high volume spikes on up days, institutional money is likely flowing in, suggesting strengthening sentiment. The accumulation distribution line is a good indicator for this. ADL measures supply and demand by charting money flow volume. Assuming volume does predict a reversal in price, an ADL divergence suggests trading opportunities. When ADL trends upward indicating buying pressure, but price is trending downward, a bullish divergence, the price is poised to reverse. The volatility index, or VIX, is another good indicator of market sentiment—there’s a reason it’s called the fear index. VIX tracks implied volatility in the options market, making it a good counterpoint to lagging indicators. Since options are typically hedging instruments, high volatility in the options market suggests fear that current market trends will reverse. Low volatility implies confidence that current trends will continue. Although market sentiment can provide useful insight to confirm trading signals, it should not form the basis of your trading strategy. It shouldn’t be ignored or underestimated—emotion is a powerful thing in the market—but neither should it have an outsized impact on your trading decisions. Use it to give you a more complete view of the market and context for your trades.

Stochastics are used to identify points at which a security becomes overbought or oversold. They plot the current price in relation to a specified range of prior prices. The stochastic oscillator is range-bound, meaning it will only ever range between 0 and 100, with readings below 20 indicating oversold and over 80 suggesting overbought conditions. Traders who use stochastics say the difference between the fast and slow stochastic is a matter of sensitivity, with the fast stochastic being far more responsive to price signals. A look at the calculations might help explain this more clearly. Fast %K: [(Close – Low) / (High – Low)] x 100 Fast %D: SMA of Fast K (generally 3-period MA) The fast stochastic tends to produce a lot of signals, not all of them reliable. Now look at the slow stochastic equation— Slow %K = Fast %D (3-period moving average of Fast %K) Slow %D: MA (typically 3-period) of Slow %K The slow stochastic operates as a smoothing agent on the fast stochastic, eliminating many of the false signals. For this reason, many traders view the slow stochastic as a more reliable indicator. As you can see in the chart below, the slow stochastic is quite smooth compared to the jagged peaks and valleys of the fast stochastic. In some cases, full stochastics are a better choice to adjust the smoothing of the %K line. The slow stochastic only smooths %D, but full stochastics adds a second moving average to %K. In the chart below, full stochastics were added underneath the fast and slow stochastics, with the smoothing MA set to 5 days and further cutting down on signal noise. You can use the %K and %D (fast and slow) stochastic oscillators to generate buy and sell signals. The easiest is to identify crossovers between them; a buy signal exists when %K crosses %D in an upward trajectory, and a sell is generated when it crosses on a downward trajectory. Another way to use stochastics is to look for bullish and bearish divergence to predict a reversal. In that situation, it’s still a good idea to wait for the 80 or 20 signal to confirm the trend. Stochastics are favored by both novice and experienced technical traders because they are quite accurate, and signals are easily identified. Whether to choose fast, slow, or full is more a matter of personal preference, although if you’re day-trading, the slow stochastic is less susceptible to false signals.

The simplest way to explain the difference between blockchain and Bitcoin is that bitcoin is a digital currency and blockchain is the ledger that records and powers the currency transactions. Blockchain technology was originally created for Bitcoin, which is why the two are often linked in people’s minds. But the blockchain actually supports the entire cryptocurrency market, as well as many other peer-to-peer transactions across multiple industries. Bitcoin, like other cryptocurrencies, has no intrinsic value; in other words, it can’t be redeemed for another commodity. It is not a tangible asset in any sense of the word; it exists only within the network. Unlike currencies such as the USD or CAD, where supply is controlled by a central banking authority, there are no supply limits on Bitcoin. As a form of currency, Bitcoin has no applications aside from serving as a medium for exchange. The blockchain is a decentralized, self-sustaining recordkeeping system, or ledger, that tracks transactions across a peer-to-peer network. In the banking industry, for example, financial information is centralized within the bank, which owns the data about money in your account. You can request or view the information by logging into your account, but it resides within the bank’s network. Further, you cannot even spend the money in your account without going through your bank, either by withdrawing cash, writing a check, or using a debit or credit card. The blockchain removes the middleman in the transaction and enables true peer-to-peer exchanges. The data isn’t owned by a centralized authority, but by everyone on the network, which ensures transparency and accuracy. When you want to buy something with Bitcoin, the transaction is processed algorithmically and confirmed by multiple different computers, or nodes, connected through the network. Once it’s processed, it creates a “block,” which is then linked with a hash pointer to other blocks, creating the blockchain. The hash pointer is what makes the blockchain so revolutionary. It not only holds the address of the previous block, but also the data contained in the previous block. You can’t tamper with information contained in a single block because the hash pointer ensures the information is recorded across millions of other transactions. Blocks are continually added and shared in real-time across thousands of computers creating a truly distributed and immutable ledger. Blockchain has far-ranging applications outside the cryptocurrency market and is poised to potentially upset a number of industries. Banks are exploring blockchain as a way to cut costs and increase transparency on everything from clearinghouse transactions and settlement to smart contracts and insurance claims. Blockchain could also disrupt the emerging sharing economy. Currently, if you want to hire an Uber or book an Airbnb, you have to go through a third-party (the app developer) to initiate and complete the transaction. The blockchain would enable direct peer-to-peer interaction, lowering costs by cutting out the middleman. Governance, however, is one area where blockchain could have outsized impact. Imagine having elections where votes were transparent, immediately verifiable, and impervious to tampering? Finally, blockchain has obvious applications in the stock market, and in fact, many exchanges are prototyping models for peer-to-peer trade confirmation and share settlement. Bitcoin and blockchain are both parts of the cryptocurrency market, but blockchain has a much broader scope and potential to upend multiple industries and markets.

In 2001, the Financial Industry Regulatory Authority (FINRA) enacted a new rule to protect traders from the effects of too much leverage, partly as a result of the dot.com bubble of the 1990s. The “pattern day trade” rule states that if a person makes four-day trades, either buying and selling the same stock or shorting and then buying the same stock, within a five-day period, he will be flagged as a pattern day trader. Once an account has been flagged for pattern day trading, it will either be frozen for 90 days, or the owner must bring the account balance up to $25,000 in order to continue trading. The balance can be a combination of cash and securities, but it must be held at the brokerage, and not at an outside financial institution. There is a silver lining, however: If you meet the account minimum, you can trade at 4:1 leverage, which is twice what an investor or swing trader has. If you want to continue trading without falling under the pattern day trading rule and depositing more funds in your account, there are a few things you can do to avoid the designation: Don’t trade on margin. If you trade only using the cash in your account and don’t make any leveraged trades, you can avoid being flagged as a pattern day trader. Of course, this means you can’t short, so it definitely limits your trade options. Switch to a swing-trading strategy and hold positions overnight. The rule only applies to positions open and closed in the same trading day, so your account won’t be flagged. Of course, this is a completely different approach to trading, and it may not appeal to you. Limit yourself to three-day trades per week until you have the money on hand to build up your account balance. This is probably the easiest and most obvious solution, even if it means it may take you longer to achieve your goals. Open multiple brokerage accounts, always making sure you make no more than three-day trades in any of them in a particular five-day period. This is a messy and inconvenient option, and honestly, if you’re trading with a small amount of money anyway, breaking it up into even smaller amounts isn’t going to help you get where you’re going. Switch to forex or another market. The pattern day trader rule only applies to U.S. equities, so you can day trade forex to your heart’s content. Leverage is much higher, as well, meaning you may be able to build up your account balance more quickly with each winning trade. The options and futures markets are also outside the scope of the pattern day trading rule. Trade international markets. Not all countries have similar day trading rules, so you may be able to trade foreign stock markets. Talk to your tax accountant or lawyer before you go this route, however.

Dash is a crypto alternative to Bitcoin that was originally released in 2014 as Xcoin and later rebranded as Darkcoin. Ultimately, it was renamed Dash, a shortened form of “digital cash.” It was developed by Evan Duffield, who saw the potential in Bitcoin in 2010 but felt it could be improved, especially in terms of transaction speed and privacy protection. Dash has a hard max supply of 18,900,000 coins; there are currently about 8.5 million coins in circulation. Based on its value in March 2019, Dash has a market cap of roughly $750 million, although it entered the billion-dollar market in 2018. At the time of writing, it is currently the 15th largest cryptocurrency, although at times, it broke into the top 10. Dash governance is based on Decentralized Autonomous Organization, or DAO, via masternodes. Masternodes resemble full nodes in Bitcoin, but masternodes are fully invested in Dash; you have to invest 1,000 Dash to run a masternode. In exchange, individuals who operate one take a 45% cut of the block reward. Masternodes are part of the reason Dash is able to slash its transaction speed compared to Bitcoin. Masternode powers a payment system known as InstantX or InstantSend, which can execute a transaction in about 5 seconds. Compare that to the average of 10 minutes it takes for miners to process, confirm, and complete a Bitcoin transaction. For that reason alone, Dash seems better suited to be a currency for everyday transactions in a way Bitcoin cannot. Dash has also solved some of the privacy and anonymity problems inherent in Bitcoin. For example, they offer PrivateSend, which uses CoinJoin technology to create fungibility and anonymity within Dash transactions. Transparency is one of Bitcoin’s chief selling points, but it has significant drawbacks.If your Bitcoin was ever used in an illegal transaction, such as buying weapons or drugs, that history is forever part of your coin. It is essentially tainted and will always be worth less than clean Bitcoin. Dash solves that problem by combining several different transactions into a single transaction that can never be uncoupled, nor can the exact flow of Dash in a particular CoinJoin transaction ever be traced by a third party. Dash is considered a fast, inexpensive, and private alternative to Bitcoin, and in fact, it has a committed user base including many online commerce sites. It is one of the most accepted cryptocurrencies. However, like all cryptocurrencies, it is highly volatile and very young in the crypto space. The Dash coin experienced 100x growth between 2017 and 2018, although it, like most crypto, has struggled in 2019. However, it has fulfilled its core promises of speed and anonymity, and it is aggressively tackling adoption issues. It occupies an important position in the crypto market and is positioned to become a major player if it can successfully address its perceived weaknesses.

Not all day traders use technical analysis; they trade on price action alone and do well enough. Most, however, do rely on indicators to screen stocks and identify entry and exit points for trades. Indicators tend to fall into “families,” meaning they convey much the same information about trend strength, for example, or momentum. Because of the built-in redundancy and the potential for information overload, it’s best to stick to just a few indicators and build your trading strategy around them. There’s really no such thing as the best indicator for day trading; it’s entirely a matter of personal preference. However, these are the commonly used indicators for intraday traders. MACD MACD is a trend indicator that helps you see which way a trend is developing, if one is present at all. The MACD histogram is simple to read: When it goes up, the market is bullish, and when it falls, the bears are in control. Signals are equally simple to spot—when MACD drops below the signal line, it’s a sell signal, and when it rises above, it signals a buy. RSI The RSI is one of the most common oscillators; it measures momentum on a scale of 0 to 100. Readings above 70 suggest an overbought market and below 30 suggest oversold. RSI is extremely useful for helping identify when a trend is poised to reverse so you can capitalize on movement, take your profit, and get out quickly. Keep in mind, however, that not all securities fit the 30-70 range, and may not actually enter overbought territory until 80 or even 90. Bollinger bands Bollinger bands are a volatility indicator, which is a necessary characteristic for a good day-trading stock. If the price isn’t fluctuating, there’s not a lot of profit to capture, after all. Bollinger bands consist of a moving average with two lines plotted on either side at two standard deviations. When the bands are narrow, volatility is low; when they are wide, it is high. A Bollinger squeeze may help you predict breakouts and time your trades. Remember that all indicators have their limitations and frequently produce false signal—or fail to produce signals at all. Practice with a simulator or demo account using various indicators until you find the combination that works best for you and your trading style.

Actually, futures are very popular in the crypto market, with Bitcoin futures products trading on the major exchanges and other crypto futures on the BitMEX. Because the products are cash settled and not settled in Bitcoin, the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) both approved the listings. Crypto futures are derivatives, which mean they derive value from an underlying asset, in this case cryptocurrency. Crypto futures let you speculate and trade on price movements of an underlying currency or basket of currencies. Futures represent an agreement between two parties to buy or sell an asset at a set date in the future for a fixed price, regardless of the actual price of the underlying asset. Once the contract is created, it can also be traded at any point prior to settlement, creating a secondary market in which the buyer or seller of the futures contract never has to take delivery of any cryptocurrency, but simply takes profits (or losses) on the performance of the contract itself. Imagine you are bullish on Bitcoin and you believe it will rise from its current price of $7,000 USD to $8,500 in the next month, a contract allowing you to buy Bitcoin at $7,500 four weeks in the future would be a good investment. Likely, if you think Bitcoin will slide to $6,000 USD next month, a contract to sell it at $7,000 in four weeks is an equally good idea. The benefit of trading futures versus simply trading the cryptocurrency itself is that of leverage. In other words, if you have $10,000 to trade crypto, you could stake out a $10,000 position, or you could put leverage to work and control a much larger position. If the exchange is offering 5:1 leverage on crypto futures, your $10,000 could control $50,000, which maximizes your ability to profit off the trade. Of course, the reverse is true, in that your losses will be similarly magnified. The danger with unregulated crypto exchanges is that some offer extremely low margin requirements, in some cases as low as 1%, or leverage of 100:1, which can result in catastrophic losses if a trade goes against you. Remember, there is no floor on your losses in a futures contract as there is on an options contract. If you’re new to crypto futures trading, you should definitely open a demo account and spend some type learning how the market works, the way the trading platform works, how the order entry system is structured, and how to execute trades. Crypto is extraordinarily volatile, and leverage multiplies the danger to novice traders, so don’t jump in without doing your homework and putting in plenty of practice.

If you’re ready to start trading the cryptocurrency market, a cryptocurrency index fund might be the best way to go. Index funds are massively popular, with some $15 trillion flowing into the three largest indexers alone (State Street, Vanguard, and BlackRock). With the growing interest in crypto, it was only a matter of time before crypto index funds were launched. On the stock market, an index is a hypothetical portfolio based on metrics and parameters such as market cap, price, or performance. An index fund is a typically passively managed basket of assets that seeks to mimic the performance of the underlying index. The index concept lends itself well to crypto, where financial information is public and transparent on the blockchain. Over the past two years, several crypto-based indices have cropped up, most notably the BB Index, which offers diversified exposure to the crypto market, and the Bloomberg Galaxy Crypto Index (BGCI), which tracks performance of the largest cryptocurrencies. As of March 2018, the NASDAQ exchange announced two new crypto indices, the BLX, which tracks real-time spot prices for Bitcoin, and ELX, which tracks Ethereum. Most market watchers believe this will open the door to SEC approval of cryptocurrency ETFs in the near future. Some of the most notable cryptocurrency index fund companies include: Bitwise, which pioneered the first crypto index fund. Its Bitwise HOLD 10 Private Index Fund holds the top 10 cryptocurrencies and requires a minimum investment of $25,000. CRYPTO20, is a tokenized fund, in which each token represents a share in a basket of 20 market-cap weighted cryptocurrencies. Bittwenty was released in 2016 as a vehicle for retail investors to trade in crypto. The fund is available on the Bitshares exchange. Investors with at least $100,000 on deposit can apply to buy shares in the Crescent 20 Private Index Fund; its portfolio represents about 90% of the available crypto market. The Coinbase Index Fund sits at the top of the list, but it requires a $250,000 minimum investment and at least $1 million in provable assets.

Warenterminkontrakte (sog. Futures) haben ein Verfallsdatum, im Gegensatz zu Aktien, die Sie unbegrenzt handeln können. Wenn ein Futures-Kontrakt kurz vor seinem Verfallsdatum steht, haben Händler die Möglichkeit, ihre auslaufenden Kontrakte auf einen Kontrakt mit einem späteren Verfallsdatum zu übertragen, um die Verpflichtung zur Erfüllung des bestehenden Kontrakts zu vermeiden. Die meisten Terminkontrakte laufen am dritten Freitag des Monats aus, wobei dies je nach Kontrakt variieren kann. Wenn Sie nicht beabsichtigen, Ihren Vertrag zu verlängern, haben Sie zwei weitere Möglichkeiten: - Sie können Ihre Position neutralisieren, indem Sie eine entsprechende Anzahl von Short-Kontrakten kaufen, wenn Sie Long sind, oder Long-Kontrakte, wenn Sie Short sind. - Sie können die Forderung durch Barzahlung oder Lieferung des Basiswertes begleichen. Wenn Sie planen, Ihren Vertrag zu verlängern, sollten Sie drei Termine beachten. Das erste ist das Verfallsdatum, d.h. der letzte Tag, an dem der Vertrag verbindlich ist. Nach Ablauf eines Vertrages erlischt seine Gültigkeit. Das zweite zu beachtende Datum ist der letzte Handelstag. Wenn Sie Ihren Kontrakt nicht gehandelt haben, müssen Sie mit der Abwicklung beginnen. Die dritte zu beachtende Periode ist das Rolldatum, d.h. die Zeitspanne, in der Sie von einem Frontmonatskontrakt auf einen Forwardmonatskontrakt wechseln können. Für den e-mini S&P 500 ist dieses Datum der zweite Dienstag des Monats, in dem der Vertrag ausläuft, oder eine Frist von acht Tagen. Andere Kontrakte haben unterschiedliche Rolldaten; Treasury-Futures bspw. enden zwei Tage vor dem ersten Absichtstag. Viele Broker bieten einen automatischen Rollover-Service für ihre Kunden an; wenn Sie Futures handeln, sollten Sie sich unbedingt über die Richtlinien Ihres Brokers und die geltenden Gebühren informieren. Erfahrene Trader neigen dazu, ihre eigenen Positionen zu verwalten, ohne auf den automatischen Rollover zurückzugreifen, da die Volatilität um diese Daten herum sehr ausgeprägt ist. Die Volumina verschieben sich um den Rolltermin herum enorm, da Händler ihre Positionen schließen und neue eröffnen. Sie werden auch breitere Spreads sehen, die es schwierig machen können, Trades zu verwalten. Achten Sie auch auf Hexentage, an denen die Zertifikate ablaufen und die zu extrem unberechenbarem Marktverhalten führen können. Es gibt acht Tage mit doppelter Verzahnung, an denen sowohl die Aktienindex-Futures als auch die Indexoptionen verfallen. Dies geschieht jeweils am dritten Freitag im Monat, außer in den Monaten März, Juni, September und Dezember. Drei- und viermal im Jahr, am dritten Freitag der Monate März, Juni, September und Dezember, kommt es zu drei- und viermaligem Verzahnen. Triple Witch ist, wenn Index-Futures, Index-Optionen und Einzelaktienoptionen verfallen. Die vierte "Hexe" sind Single Stock Futures, die ebenfalls an den oben genannten Tagen auslaufen. Hexentage sind extrem volatil und schwer vorhersehbar; Sie sollten Ihre Handelsstrategie entsprechend anpassen. Einige Trader meiden die Tage ganz einfach, weil das hohe Handelsvolumen es sehr schwierig macht, Trades effektiv zu verwalten.

Die meisten an der Börse gehandelten Fonds nehmen eine Long-Position bei Aktien und Anlagen im Bloomberg Barclays Aggregate Bond Index ein. Diese traditionellen Fonds (exchange-traded fund, kurz ETF) machen den größten Anteil am ETF-Markt aus und bilden eine gute Grundlage für ein ausgewogenes Portfolio. Alternative Anlage-ETFs hingegen investieren in andere Anlageklassen wie Währung, Immobilien und Rohstoffe. Einige Fonds, so genannte inverse ETFs, nehmen eine Short-Position ein und setzen gegen den Markt. Gehebelte Fonds verwenden Schuldtitel und Derivate, um die tägliche Rendite eines Basiswertes oder Index zu verdoppeln oder sogar zu verdreifachen. Was alternative Anlage-ETFs attraktiv macht, ist, dass sie die Investition in diese Anlageklassen für Kleinanleger leichter machen. Anstatt beispielsweise Devisentermingeschäfte zu kaufen oder sich mit dem Devisenmarkt auseinanderzusetzen, können Anleger problemlos Devisen-Fonds handeln. Auch die Transaktionskosten sind im Vergleich zu anderen Instrumenten in der Regel sehr niedrig. Ebenso ist der Rohstoffmarkt für Kleinanleger typischerweise schwer zu navigieren, aber es gibt Rohstoff-Fonds, die die am häufigsten gehandelten Rohstoffe wie Gold und Öl verfolgen. Darüber hinaus gibt es Rohstoff-ETFs, die einen Warenkorb oder einen Warenindex wie den PowerShares DB Commodity Index Tracking Fund (DBC) verfolgen. Rohstoff-ETFs sind besonders beliebt, da sie wenig mit der Börse korrelieren und somit sowohl für die Absicherung gegen Inflation als auch für das Gesamtportfoliorisiko nützlich sind. Inverse ETFs wiederum sind nützlich für die Absicherung eines langfristigen Portfolios und auch für Spekulationen. Gehebelte Fonds (leveraged ETFs) sind fast immer spekulative Instrumente, die von Day Tradern bevorzugt werden. Von den verschiedenen alternativen Anlageoptionen stoßen die neueren Multi-Asset-ETFs bei Privatanlegern auf großes Interesse. Diese Multi-Asset-ETFs kombinieren das Engagement in mehreren verschiedenen Anlageklassen unter einem Dach mit attraktiven Handels- und Betriebskosten. Einer der beliebtesten Fonds, der Multi-Asset Diversified Income Index Fund (MDIV), hält Dividendenwerte, Real Estate Investment Trusts (REITs), Master Limited Partnerships (MLPs), Vorzugsaktien und High Yield Bonds. Wenn Sie ein Portfolio aus Aktien und Anleihen diversifizieren möchten, sind alternative Anlagefonds ein einfacher Weg, um in andere Märkte einzusteigen, ohne die üblicherweise hohen Investitionen stemmen zu müssen.