I would like to ask the gurus on this board for an opinion on the following: I am setting aside about $20,000 of play money that I would like to use for intra-week or up to a month’s, at most, play that would net me a Dollar or more per share. Let’s take SFL for example. I have noticed that SFL has a usual run of up to about $17.++ and then it goes back down to about $15.++ and then it repeats the cycle. This usually happens in 30-60 day cycles. Do any of you ladies/gentleman play this spread on this stock? How about any other stock that you may be playing like this? I am not trying to be a day trader, not even a weekly trader – I can wait but I am looking for these type of moves with good established companies. No, I will not touch JCP and a few others... I own SFL, ACAS, NCT, PEI, GE, LO, TWO, SBY, CBL, XTEX. I am aware that I am heavy in to mreit's because that where the money is right now but I do have my stop limits in place.
Dino, I like going into a div paying stock a month or so before the 'x' date. The stocks that pay 50cts or more each quarter and are priced below 20 bucks will most of the time make a run going into that 'x' date. Even if you don't get the run, you still have the div to help you out. And, if you'd like to park your money while you go on a month long vacation, buy EGP and enjoy what you find when you get back.
dino...some investors on this board sometimes play the spreads (with and without success)...however, there are several different ways to do it...i.e. the RSI (relative strength indicator) and/or the PDI (price direction indicator) and etc.,.....you can run some charts and then go from there to see if it would work (charts and 'technical indicators' are important)....the main problem is that past performance 'can be a guide but not a true rule to go by' (always check out the previous history)....
If there was a clear cut system to make money in the markets off of stocks, everybody would do it and would be wealthy...myself, I am mostly a long term investor and as everybody knows I look at the companies color, drivers and forward outlook (among other things on my buy, sell or hold)...! $tagg...!
Always value your oppinion and that of a hand full of others. I think we all know that the market does involve a certain amount of "Gambling". I am not a gambler by any means, last time I was in Atlantic City was 2 years a go... but I do beleive that in the long run, one will make a few $$$ by playing the spreads OR bying shares of a good company who had a lousy quarter. Obviously, I will not put too much money in to a play like that, 2008 still very vivid in my mind, but I really think one will make $ more times than not, provided the company has good fundmentals and that's why I asked for oppinions here. I read many boards but this board, NCT, ACAS and a couple more are the more down to earth boards that I don't have to go through 50 msgs about Obama and this and that - totally unrelated.