I am a newbie in the markets as well since last year. I was online 24/7 watching all these Jim Rogers, Marc Faber and Peter Schiff video's switching between reading other articles about money, commodities, stockmarkets and internet porn but anyway I sank deep in the doom and gloom section of the internet so i went double short real estate (SRS). It went up 300% back in november I believe? Well i couldnt believe it but anyway.. I hit it right. Next stop the battered goldminers. I bought Sill (down 90% then) it whent up 100% the day I bought it. I saw myself sitting on a beach in Hawai the next week. Sill went up another 100% the next day. Crazy. Started calculating how much I would make if it did a 100% the next day. Next day it crashed. No gain no losses. Let's do that again this time I'll sell at the right time. Next week SILL down 80%. Crash. I'm out. Little Money I have left from SRS goes into CDE. Up 200% over the next week. Woohoo. I sell before it crashes. Buy Novagold. Down 50% the next day. Up 200% the next 2 weeks. Buy low and sell high is my best advice and while you are not alowed to tout pennystocks on here I play them anyway. If you buy a stock at 40$ it needs to go to 80$ to get a 100%. Not easy. Today my short is down but the market is up, my goldstock is down but gold is up. Forget about reading the markets. Don't do charts or any of that crap I just go with my stomach. Outperforming Mr Buffet ever since. Cheers.
Use 5 minute charts and buy SDS or QID when they pull back to their 10 and/or 20 SMA and look for risk reward moves of 1-2. keep it simple with ETF or try picking indivudual stocks.
Thanks that sounds like a good plan, But I dont invest in companies or trade on stocks I know nothing about. I'm really looking for just different strategies to work with options.
I'm not sure what your level of education is with options....but something that requres a bit less watching, easier to learn and pick up would be to learns something about credit spreads,. Learn what the deltas mean, theta decay, and how quickly you can cash out on your spread when it expires worthless and retain your profit. These are generally month long trades. How did you plan on day trading the options?
FWIW and IMHO Several folks have tried to warn you about this being a tough market right now â They are right (Half the stuff I track went straight up today, the other half bounced like a ping pong ball, and went basically no where) Do you currently have the skill to separate the two behavioral patterns and trade em?? It is your money, and I would never try to tell you anything but I would respectfully suggest the following; Slow down and get some formal education Set up a demo account and use it (till your blue in the face) â finding a method / style that works for you, and is repeatable (NOTE: Repeatable does not mean 100% - it never will be) Write down some trading rules â ie. put a framework around the method youâve identified Set up a live account and trade 10 or so shares at a time till you have the skills (physical and mental) down Youâll then at least have a slim chance (Realize â thereâs a whole lot more I did not include) Otherwise I will gladly accept your donations (And I am NOT saying this to be an ass Sir) Food for Thought only Take Care Redneck
why cant anyone just help the guy and tell him a few effective trading stratergies??? :eek: Everyone here likes to act like they are a seasoned pro who makes millions per year trading, yet never actually want to disclose their enteries, exits, and trading method. *sigh* K mate if you want to trade futures, works best on crude oil, but can be used on dow n even currency pairs liek gbp/usd if they are volatile enough, but by far oil is the best n easiest... Then here an easy to use, low risk~high reward~high probability trading stratergy, which is extremely profitbale and effective. http://www.elitetrader.com/vb/showthread.php?s=&threadid=152873&perpage=6&pagenumber=1
FWIW I am long NQ and long cheap OTM puts. I think that we are in a wedge or pennant and about to break out one way or another. If it is on the upside the NQ longs have me in the green (as of yesterday), if we are not in for a sharp bear market rally as it looks likely right now, then the pattern would be for a swift retracement to the bottom of the wedge (where the long NQ stops are) and a break through to new lows in which case the puts will pay out.