What's up guys? Flash here with tradingwithflash.com. In this video I'm going to break down what ETF in a stock is very quickly and some tips to give you when trading them. Stay tuned.
OK guys, I'm going to break down in simple terms very quickly what the difference with an ETF in a stock is. It took me a while to understand the difference with an ETF and a stock. So for example if you trade commodity ETF which means say natural gas, oil, gold things like this then ETF will move based on the commodity which it's moving.
So a stock moves on the price and volume in terms of trading the stock for example if you buy a stock of AKS at five dollars and you buy a million shares up or down you will see the ticker move drastically if you do this in an ETF it won't make a difference to the price because the volume doesn't affect the price what affects the price in an ETF is the commodity movement behind it, so bear that in mind. Another tip is it doesn't follow support and resistances quite the same as a stock.
So in terms of your trendlines support and resistances it's not a great confirmation because it's traded off the commodity moving it and so the support and resistances won't really be relevant so bear that in mind when trading ETFs.
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