|From: 10x (Rep: 75)||Date: 2010-03-10 20:03:14|
|Forum: Shadow Island - Thread #672931634||Msg #44 - Part 1/1 (Rec: 0) |
|Hi Traders. Besides holding Etf's for swing trades, I also daytrade them as for me it seems|
a lot safer than some of the small caps I day trade.
Over the years I have bocome fairly good at knowing when the market is about to turn over.
Using multiple time frames with macd and/or stochastics you use longer time frames for
entering and exiting swing trades, and shorter time frames for day trades.
Always look at the overall market trend. When the market is trending upward, your long
position swing trades will on average last about 4 or 5 times longer than your short position
trades. Just the opposite is true when the market is trending downward.
Another trick you can use is to buy both sides. Lets say you get into a long position trade
and you have reason to believe the market won't hold up and is turning on you and to make
matters worse you ran out of day trades (for small acc'ts or cash acc'ts) and can't sell out
of the position.
Merely buy an equal $$$ dollar amount of the opposing etf's shares. For example. lets say
you have 100 shares of x at 10.00 and the price of the opposing etf is 50.00. You divide
50 by 10 and get 5. So you then divide the # of shares you own of x which in this case
is 100 and divide by 5. = 20. So you buy 20 shares of the opposing etf and your money
will basically float until you have a clear indication of which way the market will go.
The other way to quickly figure it is using the dollar amount. 100 shares x 10.00 equals
$1,000.00. So you merely buy 1,000.00 of the opposing etf's shares. 20 of them at 50.00
each equals 1,000.00.
For daytrades, I like the 3x leveraged etf's because they move at 3x the movement of thier
corresponding index. Once you have used the indicators mentioned in previous posts for
a while, you will start to see many daytrading opportunities for scalping out profits during
I have sat many days and hours watching the news scroll by, watching 20 or more charts
at a time waiting for the right set up to daytrade an individual stock. Since etf's move
with the market, it is much easier with a little practice to have multiple etf positions going
at one time for swing trades and when done right you can use multiple etf's at a time for
day trades. There are quite a few times each day suitable for day trades.
I know all about the hopes and dreams of getting in that one great stock that gets great news
and takes off towards the moon. But while you are waiting to get lucky. Practice what's in
these lessons and build your acc't up.
Etf's are also optionable but I will save that discussion for another time. Hedging you etf
positions with the opposing etf or options plus what I call the see-saw method, they all
work. You will find in life that you make your own luck. If you wait for it to find you, you
may end up awfully lonely. Good luck, 10x
I have started a Forum, SHADOW ISLAND. Feel free to stop by and read about news and info you won't get from the main stream media. We trade ETF;s Gold and silver miners and small caps including otcbb, nyse, nasdaq, amex, Under 10.00 per share. Rules not firm. This is still America and we believe in freedom of
speech. No cursing please. http://www.thelion.com/bin/forum.cgi?tf=shadow_island
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