I just felt like starting a new thread specifically for talking about FAS and FAZ. On Friday I entered FAZ at 8.01 at the end of the day and cashed out today at 8.83, approx 9% profit. I was looking at FAS at 7.90, but I didn't want to get caught out hard like I did last week, last week was a terrible experience for me and I lost all my previous profits. I however am back in the black to start this week fresh. I just try hard to not repeat my previous mistakes. Looks like the market is on the rise, but its already "fairly high" for a monday so, it will be interesting to see what happens. 7.90 is looking good now for FAS, I wonder if that will stay true or whether it was a good idea for me to stay out so early monday morning.
Looks like its climbing slowly, so am I missing the boat ride up to $10, or are we at a high already? I wish I knew the answer to that.
Ok then. I'll post over here about FAS/FAZ. I see financials holding down the market. FAS made a double top .01 below break even for the day, XLF was similar, even though the market is up. So Ibought a 1/2 size FAZ at 8.40, will add if we get a higher low on my mid term chart. Stop is at the low ~ 8.30.
I find 10 cent stops to be too iffy for these ETFs. They are sol volitile that I feel like I am immediately giving away 10 cents. And yeah I know by the time I get to execute and order and I myself am convinced its the best time, I probably loose 10-15 cents from best price, but if it switches direction all of a sudden back in my favor, I can hold my finger over the trigger without pulling it. Don't get me wrong, I love stops limits and trailing stops, but I usually only use them when I have to go to a meeting or otherwise can't watch what's happening. I also usually set them at 15 to 25 cents...again because the volotility is so high with these etfs that 10 cents is likely to trigger just from the normal minute to minute price flux.
It's not a .10 stop. It's based on it going negative for the day, which it also, like FAS going positive, rejected twice. Added at 8.51
ya, I am still in cash right now waiting for a good entry. Although I think the market is likely to drop, I don't think I am going to get much out of FAZ unless it truly dive bombs. Its strange because I feel FAS is the safer bet to buy when its low, but I seem to be better able to predict when FAZ is low and so I trade a lot more FAZ than FAS, though if I had as good an eye for FAS as I seem to have for FAZ I would be a LOT richer now than I am right now. I missed the boat to $13, FAZ...in reality I got on the boat and made some money, but I got off too soon. Locked in profits though are always better then unrealized profits. A bird in the hand is worth more than two in the bush.
To my eye, now - as in the last couple of hours, and maybe until EOD - the trend is down. FAZ made a higher low - 8.30 vs 7.85 - and now I'd like to see a higher high made on the long term chart - over 8.90. We'll see.
Looks to me like you made a nice entry point at 8.40. If I were you (and I am not) I would get out at near 8.75. Grab the pennies you got and run, but I am one for locking in profits rather than riding it out. I of course miss the great and awesome profits that way, but at least I am still in the black. If I were able to day trade, it would be a different story, I'd have been in both FAS and FAZ a few times already, but being forced to swing trade and use my limited number of day trades as an exit hatch, I need to be more careful. I have screwed myself out of a few hundred dollars already because of painting myself into a corner like that. Oh to only have an investor/lender willing to risk $25k for 90 days or so for a 15% or better return. I paper trade what I "would have done" as well as what I do, and I could easily return $30k in 90 days for a $25k initial investment. I just want someone willing to risk enough to let me make my own greater than $25k basis.
Haha, in the time it took me to write that, FAZ gained another 15 cents and looks strong. FAS is looking inviting now. Gotta watch closely. Maybe this will be a before the closing bell position.