Chapter 13
The Vibrational Vehicles
Vibratrading employs equity ETFs and commodity-based CFDs as its main trading and investing vehicle. ETFs offer an exceptional way to access various local and global markets, and they put traders and investors on equal footing with larger hedge funds in terms of being able to participate in all of the following markets with minimal capital:
1. Industries
2. Sectors
3. Futures/commodities
4. Local/international stock indexes
5. Global markets
6. Emerging markets
7. Specialty markets
8. Style (growth, value, small cap, large cap)
9. Bonds/fixed income
10. Currency.
Contract For Difference (CFDs)
CFDs provide the vibratrader with many unique advantages that equity ETFs do not offer. High leverage and access to twenty-four-hour trading of spot-based commodities are but a few advantages. Nevertheless, we only trade commodities when using CFDs, as we want to reduce the incidence of a zero test level event. There are many splendid books out there on CFDs and ETFs, and this book does not purport to deal with the intricacies of a subject that would take an entire book of its own to cover. Only a brief description of ETFs and CFDs will be given.
Characteristics of Exchange Traded Funds (ETFs)
In the majority of ETFs, you are able to:
1. Buy a minimum of one share
2. Buy on margin (just like regular stock)
3. Short the ETF (if shares are available)
4. Buy and liquidate intraday (subject to the Pattern Day Trader's Rule)
5. Trade ETFs with real-time ...
