Questions about ETFs and IRA

Discussion in 'Learn how to trade or invest by asking questions' started by KiloJKilo, Jan 6, 2011.

  1. KiloJKilo

    KiloJKilo New Member

    So, after opening my self directed IRA and doing some reasearch into ETFs and index funds, I've developed a few questions. First, almost all- if not all, index funds and ETFs I've looked at are at or just below the 52-week high. This creates some confusion as just when I'm supposed to buy.
    For example: PowerShares Dynamic Small Cap Growth Portfolio (PWT) is at $16.46 at close 1/6. It's 52WH is $16.61. It seems like every ETF I look at is at the top of the mountain on the chart. It would seem logical for me to wait until it drops down lower to say around $11 to $13 range in order to gain more. Would this seem appropriate?
    This leads to my next question if I should wait until it's droped a few bucks: Let's say I buy x amount of PWT in June at $12 and by December, it is back up to $16. Inside my Roth IRA, am I supposed to sell this to earn something?

    Thanks for any thoughts on this :)

  2. Matt Psyche

    Matt Psyche Member

    1. Wait. It is not a good time to buy now. Read some books about technical analysis. 2. Don't have to sell. But you may want to sell before possible sell-off on the last market day in the year.
  3. 8307c4

    8307c4 Member weekly contest winner

    You won't outsmart the market insofar as to when is a good time to get in,
    I can assure you of that, the only thing you'll outsmart is yourself by trying
    to figure out where the lowest point is and whether it's hit a new low...
    How do I know that...

    Here's the thing...
    The market was at an all-time low two years ago just after the stock market crash,
    guess nobody wanted to invest then but now that everyone wants to invest the
    stocks have acquired their lofty positions, and it is always like that, every single time...
    Either the stock looks good but the chart has gone so high that one wonders if it will topple,
    or the chart looks like it can't go any lower but then the investment hardly looks attractive.

    In conclusion you have to decide, at some point, when to take the plunge.
    Like now, or never.

    Ill give you a hint...
    The stock market will not crash Monday, or at the very least it's really unlikely.

  4. buckhorn

    buckhorn New Member

    If this bull market continues you may not get a significant pullback to buy in. Lots of talking heads on CNBC predicting the S & P at 1400 by year's end. If you feel this bull market is indeed going to continue you might as well buy in today,and set through any small corrections that will almost without a doubt come along.

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