I have been participating in a little day trading while the stock market is so volatile. Volatility makes for the perfect time to day trade. Day trading is not for the faint of heart and it helps to have time to stare at the stock scroll on CNBC & your laptop on the Yahoo Stock Quote Sight.
How do I pick my stocks? I review the grafts, read the articles, and try to stay within the parameters of stocks that I know something about. Looking at the day's range and then the past 5 day's range is a good indicator of the ups and downs of the stock. If you don't have much range of motion-it will not be a good pick. The trick is picking when they are low and selling when they are high-DUH! Sounds easy enough, until you realize just how crazy the past month has been in the world of stocks.
A couple of stocks that I have owned, I have sold options to sell to lower my basis in them, while still maintaining the ownership of the stock. This is a gamble. The owner of the option has the option to take my stock at a certain price by a certain date.. I must pick a price to sell the option that if I loose the stock, between the option sale and the stock sale-I will make my profit. Another rung of complications-but it has proven a very effective tools with 3 well known stocks that I have owned. One of the three, they took the stock at the agreed upon price, one they did not take the stock,but I kept the money from selling the 30 day option, I have now sold another option to sell the same stock for 30 more days-so still own the stock-but have sold 2 options, and the third was a 90 day option that I sold at a very nice profit-if they take the stock-I make money-with what the stock is currently doing- if I keep the stock-I will make even more money. All three of these have been win-wins.
I have sold several stocks-several times and made a profit each time. Keep in mind-they are not all winners! I sold my first stock at a small loss yesterday, but I am also holding onto 3 stinkers. The stinkers are good companies and the decision will be to eventually take a small loss or wait for recovery. I have one more stock that I have a sale order in for a small loss. My philosophy is better to take the small loss-take that money and invest in another hopeful winner.
This works when the stock market is acting crazy like it is now. My personal preference-and what would be best for BC and the nation-is a steady growing economy and stock market. Since I have no control over either of those, I will just go with the flow and make the most of what we have.
WARNING-THIS IS NOT FOR THE FAINT OF HEART & DOES NOT ALWAYS WORK. PLAY AT YOUR OWN RISK!
8 comments:
Finance Geek!
I love it!
i think you may have too much time on your hands!!!
I would love to try this, but just don't have the time. When you are captive 10 hours a day it is not prudent for sure!
U and Me both Sistah!!! I buy and sell GE all the time. Right now I am holding onto 10,000 worth waiting for it to go back up. I bought some 4 weeks ago and sold it in 2 days and made a profit and then it dropped again so of course couldn't resist buying 5000 and then it dropped again so why not 5000 more....who would have ever thought it would go below $22.......We are talking GE here. I am not a long term holder except in our retirement stuff. I get antsy when I can't buy and sell every couple of weeks or even days hehehehehe.
(dramatic music)
Michael Douglas and Lora Conville star in...
"Vienna Trade Days" (Da-da-Dum)
..."you just thought the bottom fell out."
This film has not been rated.
no.2
You are a big geek! Really, I am just jealous that you have the time and know-how to do this. So if you aren't running 400 miles, you are buying/selling/trading stock on the internet. Wow, what a woman!
interesting post. nice to see someone is making money in the market these days.
checking out the "grafts" was probably more eloquent than you realized.
Most look at the graphs to tell them how to invest but watching the grafts, or more importantly the graft (and corruption) may go even further in telling one which companies NOT to invest with.
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