Index Fund Trading Using Technical Analysis and Swing Trading Strategies

Index Fund Trading Using Technical Analysis and Swing Trading Strategies

Index Fund Trading can be one of the most profitable… or most costly exercises you will ever do.

While trading a basket of Stocks has it’s advantages, such as removing the risk of any single company you own Stock in going bust and taking all of your money with it, Indexes tend to be highly volatile, especially the smaller ones.

Using technical analysis and swing trading strategies for your index fund trading can vastly improve your results and profits if you know how to analyse Stock trends and patterns.apex trader funding review

The S&P 500 is probably one of the Worlds best known indexes, and it has a long history of strong trends that have made and lost traders fortunes over the years.

By trading a managed fund that tracks the Index, we can participate in the movements of the market.

The easiest way to do this is to simply buy a managed fund like the Vanguard 500 Index fund. This works fine when the trend is up, but what about when the trend is heading in the other direction?

There are several funds that trade inversely to this index. One of these can be used to trade the downside when prices are falling, as they did for a long period of time as the market came off the 2000 top.

The problem with these funds is that you usually have no leverage. This is why many traders move on to Index Fund Trading through derivatives as an alternative to simply buying a Mutual fund.