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ETF Trend Following Playbook, The: Profiting from Trends in Bull or Bear Markets with Exchange Traded Funds

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ETF Trend Following Playbook, The: Profiting from Trends in Bull or Bear Markets with Exchange Traded Funds


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Low-risk ETF-based investing strategy that earned +26.1% returns in the past decade, while the S+P 500 was losing 37.4%

  • The first book to combine ETF's, technical analysis and some of the most successful trend following strategies.
  • Gives investors the ability to regain control over their portfolios, stop the bleeding, and avoid riding bear markets to the bottom.
  • Remove the emotion from investing, and replace it with simple tools that are easy enough for any investor to utilize.
  • Description

    • Copyright 2010
    • Edition: 1st
    • Book
    • ISBN-10: 0-13-702901-2
    • ISBN-13: 978-0-13-702901-3

    Master the Low-Risk ETF-Based Investing Strategy That Gives You the Chance to Make Money in Any Market Climate

    “Tom Lydon has been a leader in the ETF business for many years. His new book walks through the basics of ETFs investing and shows why professionals–and increasingly, individuals–are turning to ETFs.”

    –Bob Pisani, CNBC Reporter

    “Our complex and global financial system has created a powerful need for guideposts for investors and traders alike. Tom Lydon provides an excellent tool to help navigate the current economic environment in a clear, concise, easy-to-understand way.”

    –John L. Jacobs, EVP and CMO, The NASDAQ OMX Group, Inc.

    “There are hundreds of writers, speakers, and advisers clamoring to get a seat aboard the ETF bandwagon. However, if you’re looking for genuine insight from a real pioneer, then read Tom Lydon. Not only is Tom’s The ETF Trend Following Playbook a principled how-to guide for individual investors, it is requisite reading for money managers.”

    –Gary Gordon, Editor of ETFExpert.com

    “Tom Lydon has put together a concise handbook for the active ETF trader outlining the key drivers of successful trend investing. The ETF Trend Following Playbook provides sound advice for traders as well as a comprehensive and up-to-date tour of all the ETF world has to offer.”

    –Scott Burns, Director of ETF Analysis at Morningstar

    Sample Content

    Online Sample Chapter

    Trends Are an Investor's Best Friend

    Sample Pages

    Download the sample pages (includes Chapter 1 and Index)

    Table of Contents

    Acknowledgments . . . xii

    About the Author . . . xiv

    Introduction: Buy—and—Hold: Rest in Peace . . . xv

    Chapter 1 Trends Are an Investor’s Best Friend . . . 1

    Buy-and-Hold’s Funeral March . . . 4

    Getting in Touch with Your Emotions . . . 7

    Never-Ending Opportunities . . . 9

    Chapter 2 Risk and Disaster Don’t Have to Go Hand-in-Hand . . . 11

    Greed and Fear and Stocks, Oh My! . . . 12

    Running Scared . . . 13

    What Kind of Risk Level Can You Tolerate? . . .14

    Types of Risk . . . 16

    Staying Grounded . . . 17

    Is Time on Your Side? . . . 17

    The Go-Getter (Aggressive) . . . 17

    The In-Betweener (Somewhat Less Aggressive) . . . 18

    The Almost There (Moderately Conservative) . . . 18

    The I’m Outta Here (Conservative) . . . 18

    Chapter 3 Spotting Trends . . . 23

    Tools of the Trade . . . 23

    Learning to Identify Trends . . . 24

    The Rules of the Game . . . 25

    Understanding the Moving Average . . . 26

    Exiting Safely and Profitably . . . 27

    Avoiding a Bursting Bubble . . . 29

    Learning to Live with “the Sell” . . . 29

    Finding the Trends . . . 30

    Up, Down, and Flat as a Pancake . . . 31

    Timing Is Everything . . . 35

    Chapter 4 Why Trend Following Can’t Be Beat . . . 39

    Never Look Back . . . 42

    What Happens After You Sell? . . . 43

    Conquer Volatility, Don’t Let It Conquer You . . . 44

    Do You Have Any Better Ideas? . . . 44

    Buy-and-Hold: Does It Work Like It Should? . . . 45

    Where That Leaves Us . . . 46

    Chapter 5 The Nuts and Bolts of ETFs . . . 49

    Why ETFs Are a Better Solution . . . 50

    A Fast-Growing Industry . . . 53

    Evaluating ETFs . . . 54

    Employing ETFs . . . 56

    Chapter 6 Tools You Can Use . . . 61

    News . . . 61

    Analysis . . . 62

    Looking Under the Hood . . . 63

    Charting . . . 64

    Chapter 7 Navigating U.S. Markets . . . 65

    Choices Galore . . . 66

    Dow Jones Industrial Average . . . 67

    The S&P 500 . . . 69

    Russell Mid-Cap Index . . . 70

    The Russell 2000 . . . 70

    Growth Versus Value . . . 72

    Value: Slower but Steadier . . . 72

    Trends in Value and Growth . . . 73

    Domestic Market ETFs . . . 74

    Digging in Even Deeper . . . 75

    Chapter 8 International Opportunities . . . 77

    The Land of the Rising Sun...and Profits . . . 79

    The Beginning of the End . . . 80

    Emerging Markets . . . 82

    China’s Dragon . . . 84

    Investing in Emerging Economies . . . 86

    Another BRIC in the Wall . . . 87

    International ETFs . . . 88

    Developed Markets . . . 89

    Emerging Markets . . . 90

    Chapter 9 The Best-Looking Sector in the Room . . . 93

    Technology: High Highs and Lower Lows . . . 95

    The Bubble Springs a Leak . . . 96

    Passing Around Blame . . . 98

    One Big Financial Mess . . . 99

    The Beginning of the Global Crisis . . . 100

    Sector-Specific ETFs . . . 101

    Power Up with Utility ETFs . . . 103

    Checking Up on Healthcare ETFs . . . 104

    Banking on Financials . . . 104

    Chapter 10 The Luster of Gold and Crude . . . 107

    Oil: A Slippery, Yet Profitable Slope . . . 110

    Turning Trends into Profits . . . 113

    Owning Your Share of Commodities . . . 114

    Agriculture . . . 116

    Energy . . . 117

    Metals (Precious, Base, and Industrial) . . . 118

    Broad-Based Commodity ETFs . . . 119

    Going the Roundabout Way . . . 120

    South Africa . . . 120

    Chile . . . 121

    Russia . . . 121

    Australia . . . 121

    Commodities: A Valuable Part of Your Portfolio . . . 122

    Chapter 11 The World of Currencies . . . 123

    Monitoring the Ups and Downs of Money . . . 123

    A Rocky Road for the U.S. Dollar . . .124

    Citizens Suffer . . . 124

    The Dollar Bucks Its Trend–Will It Last? . . . 126

    Making the Most Out of Currency ETFs . . .129

    Squeezing the Most from Your Dollars . . . 131

    Chapter 12 Trends in Fixed Income . . . 133

    Factors to Consider . . . 137

    The Yield Curve . . . 139

    Recent Trends Spotted . . . 141

    Taxes and Municipal Bond Trends . . . 142

    High-Yield Opportunity . . . 144

    Fixed-Income ETFs . . . 144

    Who Wants Bonds? . . . 146

    How to Choose Bond ETFs . . . 147

    Chapter 13 Getting Leverage in the Markets . . . 149

    The Long and Short of ETFs . . . 150

    Pumping Up Returns . . . 154

    Chapter 14 Conclusion: Let’s Get to Work . . . 159

    Switching from Mutual Funds to ETFs . . . 161

    Working with Your Advisor . . . 162

    Wrap—Up . . . 164

    Glossary . . . 165

    References and Resources . . . 181

    References . . . 181

    Resources . . . 197

    Books . . . 197

    Services . . . 198

    Index . . . 199


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