ETF's information

[dmmull]

I am very interested in making some money in this market while it swings 600 points in one day. I am looking at some ETF's. How can one trade these funds and yet protect yourself from losing money? Would one buy both an ultra short and the reverse at the same time and then sell the one that gains?

[aiki14]

I am very interested in making some money in this market while it swings 600 points in one day. I am looking at some ETF's. How can one trade these funds and yet protect yourself from losing money? Would one buy both an ultra short and the reverse at the same time and then sell the one that gains?

About 50 sarcastic responses leapt to my mind on this one, however I am trying to be better so here goes.

We are all interested in making money in these swings, but you could very easily be walking into a meat grinder if the market turns against you. Google the "Whipsaw Effect" for an explanation.
As to how you could trade these ETF's (or anything for that matter) while being protected, you need to take hedge positions with options or futures and those positions are very expensive right now because everybody wants the hedges.
Buying a short and long position against one another will only benefit your broker in commissions.

Good luck

[dmmull]

Well, I am glad you didn't post the 50 sarcastic ones. I need to be more educated on this, I know that. Do you know of a book that I can use, is there more than one, I will get them. Any information is appreciated.

[srm555]

If the market goes up, a long ETF will go up. But if you also buy a short ETF that is equivalent, you theoretically will lose the same amount. Doesn't work. The book store has any number of good books on day trading. Problem is the markets rarely go up or down in a straight line.