Show-me Account Talk

[Show-me]

I copied this from another thread I started.

Swing trading ETF's with a brokerage account. It is becoming more popular and here is what I shared with another member.

This is how I do it. Stick to one thing and only one thing. Use only Index ETF's, no individual stocks. The Indies ETF's are diversified for you.

SPY is Long S&P 500
SH is Short S&P 500

SSO is 2X Long S&P 500
SDS is 2X Short S&P 500

Here is the link for PowerShares ETF's.

http://www.proshares.com/funds?products=98616&fundType=

There are a ton of other markets you can long and short. I stick to ONE so I do not get overwhelmed.

There is one long ETF for S fund and no short that I know of, VXF = S fund.

I fund is here. http://www.proshares.com/funds?produ...=International

F fund or bond is AGG and I do not even mess with that one. To much money to be made in SSO and SDS.

I play all or nothing. I pick a good entry point and shoot for 3% to 5% for a sale. Have a STOP in your mind once you get your buy. Then have a limit sell in mind.

Once I get my buy order filled I set my STOP 5% below that price. I deal with 2X leveraged so a 2.5% market move will equate to 5% on the leveraged ETF's.

Once I am comfortable my STOP will not get hit I will cancel and switch to a LIMIT SELL order.

More.

Roth IRA's are great.

Use who ever you feel good with ETrade, Scottrade, TD, etc. I use Scottrade because Spaf recommended it to me.

Understand Roth rules first, here. http://www.fairmark.com/rothira/roth101.htm

There are income limits.

Paper trade like 350Z suggested using this. https://www.thinkorswim.com/tos/disp...age=paperMoney

Use only a broad index etf and start slow. I use one and only one market, the S&P. There are others out there and I know them but I know the S&P the best and I don't have to keep track of to many things at one time.

I have a small account so I trade all or nothing to cut down how much the buy and sell fees eats into my trades.

Use limit orders ALWAYS! Use stops in case you get killed on the drive to work and your trade goes to crap. This does nothing for you, cuz you're dead, but protects your families inheritance so they can bury you in a nice box.

 

[Show-me]

 

[Corepuncher]

SSO is 2X Long S&P 500

Maybe this is a dumb question but how is this possible? If you are a buy and hold investor, why not just put everything in SSO and double the market??? What is the downside?

 

[Corepuncher]

losing double?

But if in the end, the market always goes up, then 30 years from now you should be up double, yes?

 

[Show-me]

But if in the end, the market always goes up, then 30 years from now you should be up double, yes?

I made the same point today. That is if you want to B&H.

 

[Show-me]

SSO is 2X Long S&P 500

Maybe this is a dumb question but how is this possible? If you are a buy and hold investor, why not just put everything in SSO and double the market??? What is the downside?

How is it possible? Through the wonderful world of leveraging. Simply, for every one share of the etf you own you get two shares of the S&P. Double the fun, double the pain.

 

[Show-me]

Well, I have two accounts. One I bought at $65 the other $64 with STOP of $61.75 and $60.80 respectively. That would be a 5% STOP. I need to see some wiggle room tomorrow and if I make some gains I will move the STOP up accordingly.

Now time for your disclaimer. If you have not noticed I have not been doing this very long. Just started trading the ETF's on Robo's advice. Look at how long I have been a member here and that is how long I have been trading TSP and ST. Not a very long time to be doing this and I will admit I really enjoy it and spend a lot of time with it. It is my consuming hobby.

MY POINT IS THE MOMENT YOU THINK I KNOW WHAT I AM DOING THE MARKET WILL SPANK ME AND YOU FOR FOLLOWING. THEN YOU WILL FIND THAT I REALLY AM A RANK AMATEUR THAT COULD NOT WRITE THIS WITHOUT SPELL CHECK. You have been warned.

 

[jon]

1256 - a tour de force. I can't recall if I've seen the slip jacket cover of a book being a printed page from the book, but Post 1256 could be the cover of your book on investing or the name of a new General Foods cereral to eat before investing. :laugh: So does tsp talk have one thread or topic that is a repository of vital information like your post, if not, how can one be started. Your post would have saved me thousands of $, if I had read it before I started investing.:embarrest:

I also appreciate your humor about my meager ETF account, "we all have to start somewhere." From singing Beatles tunes in '64 to now being 64 suggests I am closer to finishing somewhere.

 

[Show-me]

1256 - a tour de force. I can't recall if I've seen the slip jacket cover of a book being a printed page from the book, but Post 1256 could be the cover of your book on investing or the name of a new General Foods cereral to eat before investing. :laugh: So does tsp talk have one thread or topic that is a repository of vital information like your post, if not, how can one be started. Your post would have saved me thousands of $, if I had read it before I started investing.:embarrest:

I also appreciate your humor about my meager ETF account, "we all have to start somewhere." From singing Beatles tunes in '64 to now being 64 suggests I am closer to finishing somewhere.

Copy and paste it or just come back and ask me about it. Glad I can help that is very rewarding in itself. I will add that a large number of people here helped me learn this and I am just passing it along.

LOL You don't look a day over 50 from here.

 

[akpackfan]

With a good chance of a followthrough tomorrow, would it make sense to buy SSO first thing in the morning with a limit of $69 or so and then sell sometime during the day with the market up?

Or am I not understanding the concept???:blink:

 

[robo]

Well, I have two accounts. One I bought at $65 the other $64 with STOP of $61.75 and $60.80 respectively. That would be a 5% STOP. I need to see some wiggle room tomorrow and if I make some gains I will move the STOP up accordingly.

Now time for your disclaimer. If you have not noticed I have not been doing this very long. Just started trading the ETF's on Robo's advice. Look at how long I have been a member here and that is how long I have been trading TSP and ST. Not a very long time to be doing this and I will admit I really enjoy it and spend a lot of time with it. It is my consuming hobby.

MY POINT IS THE MOMENT YOU THINK I KNOW WHAT I AM DOING THE MARKET WILL SPANK ME AND YOU FOR FOLLOWING. THEN YOU WILL FIND THAT I REALLY AM A RANK AMATEUR THAT COULD NOT WRITE THIS WITHOUT SPELL CHECK. You have been warned.

Show-me,

We are getting overbought pretty quick here so this could work out well for you.

However, don't forget to play the long side when you get a nice setup. I wanted to go to the G Fund today, but with the new rules held back.. New rules suck!!!!

Be careful here my friend, because a short-term bottom could be forming.

 

[airlift]

Show,
I want to acknowledge your excellent disposition to be of help. I copied all your weblinks. Robo also has been a source of significant help through my membership here. Please, let's increase our knowledge and try to give a heads-up if you see some negative signs to the markets. I am quite new in trading, and I am in the process of opening an IRA at Scottrade. I guess it will take a couple of weeks to complete the set-up, and then the real learning begins. Thank you.

 

[Show-me]

With a good chance of a followthrough tomorrow, would it make sense to buy SSO first thing in the morning with a limit of $69 or so and then sell sometime during the day with the market up?

Or am I not understanding the concept???:blink:

IMO, easier to play the dark side. Picking bottoms is luck and we don't know this to be the bottom or a continuation to 1200. Primary trend is down and until the 50 dma turns up, we are in a declining market.

"Don't fall in love with the upside." - Oscar

 

[Show-me]

I just noticed this, this is Oscar's Dow Trans chart with the "special" moving average. Look where it stopped.

http://stockcharts.com/h-sc/ui?s=$TRAN&p=D&yr=1&mn=0&dy=0&id=p55708225113

 

[Tomncath]

I just noticed this, this is Oscar's Dow Trans chart with the "special" moving average. Look where it stopped.

http://stockcharts.com/h-sc/ui?s=$TRAN&p=D&yr=1&mn=0&dy=0&id=p55708225113

Rather ominous looking, isn't it?

 

[Show-me]

I'm not ready to go dance on the roof until I see a sustained rally. Higher highs, higher lows, and the trend to the upside. Until then short the rallies cuz they have to prove themselves.

 

[Show-me]

 

[Show-me]

Do you think traders will hold or sell the last trading day before a long weekend?

 

[12%ayear]

Do you think traders will hold or sell the last trading day before a long weekend?

Are you kidding me???lol..Everyone is afraid of the next BSC over the weekend. .

 

[12%ayear]

Major layoffs are coming , the next step in this mess.Citigroup announces layoff of 185 home equity sales workers....ON Semi confirms 200 layoffs, fab closure.. Layoffs Coming to Google Campus..Level 3 Exec Shakeup Raises Concerns — Layoffs Coming?..Wall Street's pink slip parade just the tip of the iceberg.