OK guys, you have sparked my interest in trading.
Do any of you position trade blue chips like KO, MCD, etc?
I'm getting greedy here but imagine making 4% per month. 48% a year. Even 3% a month.
I'm thinking of using large cap blue chip names for the safety. I could live with them if I had to.
I suppose this could work with just an index as well. I'm still biased towards the long side. I would just go to cash if I felt like shorting.
Anyone have a book or website on position trading blue chips? I'm thinking the holding period will be 10 days to a month or so. I don't think you can capture as big a move in 1 day although as we have seen with the BOTS, anything is possible.
This kind of goes against my thinking but I just want to paper trade for awhile to see how I like it. If we are indeed in a "meat grinder" market for years, trading makes sense. I've fought this idea, but now I'm accepting that it is probably going to be reality.
OK, this is my crude idea, You buy at the bottom of the bollinger band and sell at the top. Is this too simple?
http://finance.yahoo.com/echarts?s=KO+Interactive#chart1:symbol=ko;range=1y;indicator=sma%2820,50%29+bollinger%2820,1.5%29+volume+stochasticslow%2814,3%29+mfi;charttype=ohlc;crosshair=on;ohlcvalues=1;logscale=on;source=undefined KO as an example.
My idea is to look for the blue chips that are setting up for a move. Of course, a lot of things move together now but there have been a few uncorrelated things as Doc has pointed out. The US dollar and US treasuries. Those deviate from my "stock only" concept but I'm willing to consider them. The leverage scares me. This is why I'm leaning in the "blue chip, own it if you had to scenario".
Doc, I apologize about my comments awhile back regarding Edwin LeFevre and that book. It does sound like a classic and a great read. I should get a copy. I also want to get "Rollo Tape: Studies in Tape Reading".
I am not sure what you think I should be crying about?
Internet speed I cry about. My own stupidity and mistakes, I cry about. An incompetent and untimely broker charging for transactions and losing me money... NO!
I got rid of that problem 20 years ago. Then, I went back. That lasted a year and then I fired the new ones.
As for big sums, volume... an online account can handle whatever you have to trade.
Fidelity is awesome, cheap, good customer service, great reporting... but I am sure any online broker does a similar job.
Wall Street is already screwing you... you dont need to pay them for the privilege.
I use the online one for my girfriend, not a chance i would use this volume on the internet. Musk this was a big play , i do not understand how Jaque and yourseff are not outcrying with me... but that's probably just me being french.
They charge me 20 cents A SHARE in that bank, you heard right 20 CENTS A SHARE . One would think they could place an order within 20 minutes of my call , f i should be getting bjs and on line coffee not invented yet . Not relaxed at all /.
and i get spanked by the roast beef this weekend for the 4th time. and trust me that's the WORST that can happen to me.
I will bet 10k on Vincent Clerc to score first ., IT pays 11 to one, how is that for investing !?
I've been reading up a bit.
I should have used the term "swing trade" since it sounds like "position trading" is longer. This is where is gets tricky....the time periods.
~Cash does sound reasonable Musk.
~Arwen, I still afraid to use those inverse etf's.