Looks to be another choppy as hell day. Sold some calls on FAZ but I will cover it breaks out at 10.20. Otherwise I will wait for FAS to break out of 7.40 before buying calls. What are your guys strats for today? Sit it out? Way too choppy...ADD market.
Im holding, I like my upside from here as opposed to downside. The stress-test's will obv keep my finger on the button if it just gets out of control with manipulative conditions. Not worried about "decay" Ready for some compounding~
I got out of FAS when it was nose diving, and bought it again at 7.18. Yeah very strange patterns the last few days, totally opposite of what I thought was going to happen, it chewed up a lot of money money. Funny thing is as I keep saying, if I only held things a little longer, I would have small profits instead of huge losses. Obviously I am not doing so great after the last few days. Hopefully I now have a good entry position on FAS, but only time will tell.
Being that I am not a qualified day trader, I REALLY need to stop buying stuff, unless I have a day trade available. I get 3 per week (5 rolling business days), and I should force myself to not get in, even on awesome looking positions, unless I have an exit hatch, I have lost money to painting myself in a corner and forced to loose some money or get a PDT margin call which would essentially stop my trading. a PDT margin call (being made cash-only again), would cost me more than loosing the money at the end of "today" whatever day that is. rule 2520 really really sucks, and I can't beleive finra believes is mitigates risk to the smaller investor. That rule is designed to stop people from making money. IMO.
I wouldn't be convinced after the last few days. You might be right, but you might be wrong too, and FAS feels like it might start to downturn, but who really knows. I don't know. I am not convinced either way, but I think I am holding at a good price for right now.
I'm in the same boat as you, <25K in my account. The way I get around it though, is trading options. You can't go balls in all at once though or else you won't be able to cover, etc, but you can slowly buy and sell opposite calls (ie on FAZ, and hedge with FAS, vice-versa as well) in order to get in, secure profits, and get out, all without buying/selling the same exact security in the same day.
I'm having the same problem. That's why I was telling Port at the other thread not to jump the Gun. I don't like trading on Fridays and it seems like that tradition may continue if the market does not make up its mind today. Either way...it's a good day for brokers, they benefit from choppy markets.
I am going to look at options. I need to learn more about that though. I had initially thought I needed >$10k to trade options with my bank, but I guess that's futures. I'll check it out tonight and learn more.
I like to buy FAZ on most friday afternoons, on most afternoons really. 4 out of 5 times it seems to gap up and spike a little higher sometimes after the bell. I seem to be able to get in within .5-.15 of bottom, and get out the same. I wish I rode FAZ to 13 though, I got out in the morning the day before as is my routine, and I missed out on some serious profit and instead took serious losses because my routine didn't work for the last few days.