Why Traders Use an ETF Swing Trading System

Whether you are a new swing trader or a veteran swing trader you may be wondering why many professionals use an ETF swing trading system. The answer is quite simple.

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Whether you are a new swing trader or a veteran swing trader you may be wondering why many professionals use an ETF swing trading system. The answer is quite simple. It takes the emotional part of trading away from the trader. In fact, some of the most popular ETF swing trading systems are now available via software that can be purchased rather than software that you must program yourself.

This is great for those who are not comfortable with writing code. In addition, some of the new software that is out there is automated which guarantees that the trade plan is executed according to a predetermined swing trading strategy. The benefit of this is that it takes away the emotional vulnerability of the human psyche.

Think about this… Have you ever been involved in a swing trade where the price drops the second you make the trade. Then the price goes down a little more. You say to yourself, “It will go back up.”

The next day it drops a little more. You tell yourself, “This is a great ETF. The market is just down today.” The next thing you know it is down so far that you begin to panic. You tell yourself, “I can’t sell now because I will lose money.” The next thing you know it is out of control. You wonder what you are going to tell your loved ones in case things get even worse.

Before you know it you decide to cut your losses. You sell the ETF. You are relieved to be out of the trade but the loss weighs in the back of your subconscious so you keep your eye on the ETF even though you are out.

Sure enough, at some point the market rebounds and the ETF soars. You now realize that you let your emotions get the better of you. You lost money for no good reason.

The story above has happened to many swing traders. That is why ETF swing trading systems are becoming more and more popular.

Of course there are disadvantages to consider as well. They cost money. They are only good if the programmer knows what they are doing. There is a learning curve. Last but not least, software does not shield you from the risks associated with trading. You can still lose it all and to make matters worse you will feel like the software is to blame! For the record, taking a sledgehammer to  your computer won’t solve anything if that happens!


What are your thoughts on ETF Swing Trading Systems? Have you had any luck with them? Do you have any recommendations for which ones are the best? If so please let us know below.

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