Trading ETFs: Gaining an Edge with Technical Analysis (Hardcover)

by Deron Wagner (Author)
Key Phrases: biotech index, gold index, transportation average, Nasdaq Composite, Trade Results Entry, Oil Services (more...)

Editorial Reviews

Review
"Deron Wagner has written a terrific book on ETFs based on his extensive experience as a trader. He provides numerous insights and examples of his successful trading style. This is truly a must-read book for anyone who trades or is thinking of trading this fascinating investment product." -- Michael Sincere, author, Understanding Options and Understanding Stocks

"Having traded the ETF markets since their infancy, Deron Wagner offers the reader a voice of true experience. In this book, he describes an analysis structure that has withstood the test of time. Investors looking for an edge in the ETF marketplace need look no further!" -- Bo Yoder, trader and risk management consultant

Deron Wagner has written an excellent book, backed up by solid research and informative examples. This is one of the most illuminating works on exchange-traded funds written in recent years. His incisive commentary on position sizing alone is worth the cost of the book. --Alan Farley, Publisher and editor, HardRightEdge.com

This book is recommended both to professionals who are using or should be using ETFs as an asset class within their portfolios, as well as for the individual investor who wants exposure to wider sectors and geographical regions than those available, with comparable cost-effectiveness, elsewhere. --Clive Corcoran, Publisher and editor, TradeWithForm.com

Review

“Valuable not only for a comprehensive cataloguing of the vast array of exchange-traded funds that are now available but also for the insights into successful trading techniques. . . .This book is recommended both for professionals. . . as well as for the individual investor.”—Clive Corcoran, author, “Long/Short Market Dynamics”

 

 “An excellent book, backed up by solid research and informative examples. . . .This is one of the most illuminating works on exchange-traded funds written in recent years.”—Alan Farley, author, “The Master Swing Trader”

“Deron Wagner has written a terrific book on ETFs based on his extensive experience as a trader. He provides numerous insights and examples of his successful trading style. This is truly a must-read book for anyone who trades or is thinking of trading this fascinating investment product.” —Michael Sincere, author, “Understanding Options” and “Understanding Stocks”

See all Editorial Reviews

Product Details

• Hardcover: 304 pages
• Publisher: Bloomberg Press; illustrated edition edition (August 20, 2008)
• Language: English
• ISBN-10: 1576603059
• ISBN-13: 978-1576603055
• Product Dimensions: 9.3 x 7.3 x 1.3 inches
• Shipping Weight: 1.4 pounds (View shipping rates and policies)
• Average Customer Review: 4.4 out of 5 stars See all reviews (22 customer reviews)
• Amazon.com Sales Rank: #7,903 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

15 of 16 people found the following review helpful:

5.0 out of 5 stars A great book for ETF traders, September 13, 2008

By	Trader Mel (California) - See all my reviews

If you trade ETF based on technical analysis (chart reading), this is a book that you must read. I've been trading ETF for almost a year. As I'm trying to develop my own trading rules, and strategies, how lucky I am to be able to read a great book like this. It reinforces what I've already known, and completes what I don't know. To me, a successful trading system must clearly define all the following issues, and this book covers them all:

1. How to choose a trade. The book presents a top-down strategy based on relative strength, which is a very reliable indicator.
2. When to enter a trade. The book shows you how to enter on either pull back or breakout.
3. When to exit a trade. The book shows you how to exit a winning trade, as well as losing trade.
4. Position size. The book shows you how to calculate the position size based on volatility of the ETF so that the maximum risk of each trade is the same.

Armed by what I've learned from this book, I hope I am on the way to trading with consistent profit.

15 of 17 people found the following review helpful:

5.0 out of 5 stars Educational and informative ETF book, August 19, 2008

By	Mike Chapin (Florida, USA) - See all my reviews

As a traditional buy and hold investor, my portfolio has taken a beating over the past several months. So, I bought this book because I was looking for a smarter approach that would limit my risk. I was already familiar with exchange traded funds on a general level, but never thought about capturing shorter-term profits with them, even in my long-term IRA account. After reading the book, I was pleased to see it covered just the right amount of technical analysis strategy. The book made sense to me but wasn't overwhelming. I found the strategies taught in Deron's book were user-friendly and educational. It put everything together nicely.

10 of 11 people found the following review helpful:

5.0 out of 5 stars A Simple, Logical & Highly Tradeable System, October 30, 2008

By	John T. Morris (Palm City, FL USA) - See all my reviews (REAL NAME)

Deron Wagner,in Trading ETFs, has presented a very simple, logical and, I think, successful approach to trading ETFs. In a very readable and understandable style and utilizing numerous chart examples, Mr. Wagner describes how he goes about finding the highest probability trades, how he determines the optimum entry point, how he manages open positions, and how he exits positions be they big winners, breakevens, or losers.

He describes his approach as being a "top down strategy". His first step is to determine the direction of the broad market trend; then, once the trend is determined, he finds those indexes that have the most relative strength or weakness compared to the major indexes; then he selects the strongest ETFs within those indexes (or weakest if going short); then he looks at volume for confirmation; and finally he uses one or more of several techniques to properly time the new entry into the selected ETF.

The one thing that I liked most about Mr. Wagner's book was his use of clean and simple charts. He uses almost exclusively only two and sometimes three moving averages, draws simple trendlines and areas of support and resistance, and shows volume levels and averages. He does not "goop' his charts up with additonal indicators such as MACD-Histograms, slow stochastics, and RSI. While these indicators are certainly very useful to many traders, Wagner's plain, simple approach of looking only at price action and volume confirmation has a lot to be said for it.

Risk management and position sizing are touched upon only briefly but adequately and his comments about using trailing stops are most enlightening.

The two chapters describing case studies of 10 ETF's bought long and 10 ETFs sold short are most useful in illustrating the use of Mr. Wagner's various setups.

I have read Trading ETFs only once now but I am already looking forward to going through it again a second and third time. It is the type of book that you can only absorb only so much the first time around but pick even more pearls of wisdom on subsequent readings.

Needless to say, I recommend Mr. Wagner's newest book highly.