Just want to add to this already long winded thread. I might know a few aspects of investing, but I certainly don't want to represent myself as an authority on anything. I spend some time (maybe too much) on stock charts stuff. And I have many books about it. But TA is only a small sliver of investing. One of the most successful of investors (Warren Buffett) swears by "Security Analysis" by Graham and Dodd. I have a copy, hardcover. It collects dust. It has been used as a door stop. It has dog bite marks all over it from an Irish Setter, years ago. The dog must have mistaken it for a stick. So Buffett swears by that book (he's worth a $100Bill), I can't even read it. So, I'm a nobody.
Just to make a very clear point: 0 interest in technical analysis. A false sense of security or confirmation bias is how I see it. But thanks.
Making a monthly return over 10 years does not necessarily demand identifying a single investment or asset class today that will have delivered that return in 1 decade's time. A simple and unambitious trading strategy which is consistently profitable will deliver. But as for the safety element, trading is too risky to aim for only 1% per month - it should be 6 - if your strategy can't make 6% per month without excessive risk per individual trade, don't trade.
Big thread and it may have been said, but here's what I've been doing to make a clean 30% + a year return, even through the covid downturn. 1) Buy TQQQ long and immediately sell ITM covered calls against it for 1 week out. My ITM strike is usually at the low of the prior week, if the premium is there. Sometimes I have to go 2 weeks out to get a safe low and decent premium. If it's on a low already (chart wise), I tend to sell much closer to ATM , but still slightly ITM. 2) Pros = It's been working for 3 years so far. 80% of the time the stock gets called away and I repeat. 3) Cons = It's hard to leave money on the table sometimes when the stock runs, but I'd rather sleep better. Take away, find a 3x index ETF with high IV you like that has liquid weekly options and sell time. My personal rule is not to get scared out of the trades and hold. During covid, I didn't have any premium option to sell on my 500 shares, but just hung on for the ride . Back test it and also go to stocksplithistory.com and take a look at TQQQ 10 year return on $10k, it's over $1Million.
1% a month is child play, it is so basically attainable that does not even merit an answer. 1% a day, well, then, that's a bit harder, still attainable but harder. The way is the same, get into a move on higher TF, wait for pullback enter and capture the bit of the move that you need for your 1% (a month, a week, a day). simple as that.
That's the thing. The "safer" you wanna be the more capacity constrained you will be. There's no other way around it. So no, you can't lever up.
Now that is very interesting, you are skimming premium on a high IV where the IV is due to leverage! I care to explore it further and will PM you if that's OK not to focus this conversation on 1 idea only.
Selling covered calls on triple leveraged high volatility ETF and HODL in case things go wrong? What’s so intriguing about it!? Another leveraged buy-the-dip bull market strategy, unless I am missing something.
Sell monthly covered calls on a utility. Take DUK for instance. Sideways for last 5 years. 3.6 percent yield. Monthly 30 delta calls will net you about 0.8 percent per month. Seems like you could pretty reliably get to 12 percent per year