Best way to make concentraded bets on S&P500?

Discussion in 'Trading' started by short&naked, Sep 5, 2009.

  1. I would like to allocate part of my person funds to a strategy that puts on a position on the SP500 a few times a year (for example at points of retail capitulation such as happened in March).

    I would like to be able to use fairly high amounts of leverage while reducing the risk of getting stoped out and having to time the market exactly. Positions would be held for as long as possible (perhaps with a trailing stop).

    The only option I see right now would be BGU since no margin is owed to the broken (and I know the issues associated with it and long term trading).

    Any ideas? Thanks.
  2. Surdo


    I don't think you can trade using margin in a "Person" account, I know you can trade futures.

    Concentrade, and talk to the people that manage the person.
  3. Hi Surdo,

    I'm sorry I am not sure what you mean...
  4. I trade this kind of trend following strategy on one of my accounts using the SPY. Should work the same with BGU. But I don't know if the leverage in this ETF has any drawback for your position in the long run.

    In 2008 I merely had 5 entries, all of which were short positions, and have been long since April following this massive upmove. If you use your whole money for it and have a proper strategy then I tell you, you can get rich very fast.
  5. wartrace


    Either spy or spx options would work IF you can predict market direction.