Replies to post #39301 on Mohacsy's Safe Portfolio Member Forum

[RichardTC]

I don't trade options and I would not advise trading options for novice traders with small portfolios. I don't trade DIA enough to know it's deviation pattern from the INDU. I will say this about Index ETFs in general, Index ETFs are only designed to mimic index price movements. The ETFs will not follow the index percises for a number of reasons: slight differences in holdings, operating expenses and liquidity related issues (wider bid/ask spreads, time/price lag, buy/sell order balancing and market maker interference).

The decision for selecting DIA vs GE should be a based on risk tolerance, definable/predictable trading patterns, your macro view and liquidity.