Up 187 points 1 day, down 198 another day, up 150 another day. WTF ? How do u guys make money holding overnight ? markets so easy right now for us daytraders. Buy at 10:00, sell at 4:00. Or short at 10:00 and cover at 4:00. Easy stuff that past week. But buy and hold ? I'd be tearing my hair out. Thoughts ? Disclaimer: I'm aware this is an ignorant post. All posts of mine are ignorant. At least I'm aware of that unlike Stock Turder
I swing trade stocks, and I have 0 positions on, only scalping futures right now. Its impossible to hold a swing position after a 1.5% down day unless you have a huge stop or you ain't even swinging, more long term hold and pray. Money isn't made at this "end" type of extension of the market its just like the real estate in 2006 anybody with a hold time more then 2 days didn't make a buck, down 150 , up 150, probably sold at the bottom and wondering if you should buy right now. I sort of figured you can never predict the futures index market in in the day to day range, its close to ====random==== Was even about to put on a long term short position on DXD, except I figured no way in hell will the market fall in an orderly fashion, probably float up 3 days, then go straight down for the next 6 days, only way to play the short size is limit your market exposure to sure bets, in and out. It can only be predicted for me, in like a 15 minute frame (scalping almost) stocks , can be held if they stuck and didn't sell off, but most stocks did sell off, if you are holding some of the lucky ones, you lucked out one other note: the biggest gainer days always come during bear markets , its like the harder they fall 2% the harder they bounce 2% but then they fall again tomorrow, ZzZZZzz bull markets aren't that volatile, always quiet and creeping.
For me when there were 3 distribution days last week, I stayed out. I have been out of the market for a week now. My other investments I purchased are up, all in the positive except one. I did take some losses last week. Now that we have had a good day, I'll watch the market tomorrow and see what happens. You can swing trade, however you need to be patient and ride the ups and downs and sell on the major ups like today.
Like the 1st responder said. Scalp Futures.... Or swing trade stocks that fit your program... I had 3 that I was able to stay with for a few days/weeks, with nice runs... My SYstem gave room for them to wiggle a bit... The rest I had to ditch... Way too volatile for me....
My system gave me a bunch of buys during the first two down days but nothing after, one of which being FCX. Added to my position 2 days ago, and watched it go from 78.50 to 76.50, hitting my stop loss exactly on the nose. 76.50, was the low of the day yesterday, and now its at 82.50. Would have added again at 79.50 and made a killing. oh well.
Any successful method of trading has good times and bad times. It's very much like a relationship with another human being. So, what you have to decide is if overall the good times outweigh the bad times, and if they do they you keep with it. Right now may or may not be one of those bad times for people someone with any particular style of trading, but anyone who has been around for a long time and has been successful is very well aware that good times come and go and occassionally so do not so good times. I think it's part of what keeps the game fun, but that's just me. At any rate, I hope this helps to answer your question. Brandon btw, I did not find your post ignorant or stupid, it's probably a very common question.
I am learning to adapt to the winds of change..... Switching instruments.. Developing a different style that still works with my personality.... Its Fun....