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Making money off stock maket investments


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fanboat

Love

 

Alot of people can make money in the stock market,It's a hit and miss thing,so a mutual fund will spread the odd's in your favor.

 

I think I would look at the top TEN gainers of the week(google it)

 

Last week showed a stock that went up 98% in one round?

 

So if it is going up buy it,keep an eye on it put a sell on it before it drops.

 

Detrich coffee was .38 and went to 17.00(3000%)

 

I like penny stocks!

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Athena
I get the impression that most people on this board are not that well off,

 

Is that a fact

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I was thinking to mostly trade these for the most part, I am thinking it might be better to be familiar with the vehicle's I am trading. These are all very liquid and some of the ETF's are just a penny wide so that is one of the reason these look good, but that is just my opinion.

 

Indexes SPX RUT NDX MNX

ETF's SPY IWM EEM XLE OIH

Stocks IBM AAPL GOOG AMZN XOM MCD MON MMN WMT LMT UPS KO JNJ

 

Think these stocks are any good for anything?

The grey line is SPY.

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I am thinking of sticking to just to use RUT and SPY for indexes and ETF's but I am not sure about what stock to pick. Several look good.

Today I am just practicing order execution. Buy, sell, buy, sell all day for practice. How much do I give up from the mid if I sell at the ask or market etc. Contingent orders.

SPY and IWM market orders I think would be ok. SPX might not be a good idea as I may get hosed by the market makers.

All this is because I am going to be relying on contingent orders as I cannot always be there to execute the order. So I will continue working on it so I won't get goosed as bad when I trade real money. The truth is I need a lot more practice to get the execution down.

 

 

I am familiar with DDRX but it is a different kind of trading, my 401k I have to trade strictly directionally so I need to work more on this.

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I think the market is about to change maybe to the upside hard. But I could be wrong.

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All-Or-Nothing

Woo Hoo

 

 

Ford is now sitting at $8.78 and ARM went from $4.29 in my last post to $7.23.

 

There are a few more stocks I have been eyeing but I haven't pulled the trigger on them yet. Still researching and doing a little homework.

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August options volatility on Ford is 80.6%

September is 93.1%

October is 80.2 %

That's a pretty good skew going there

Earnings is on Nov 11

Last two earnings have been good.

That thing has really moved in the last few days

I think it would be a very good time to put some insurance on this or take some profits, of coarse that is just my opinion.

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Fords volatility skew is not at the money it is at the lower strikes so I don't know.

But one thing that is happening to the whole market is it is going up fast and volatility is going up too at the same time.

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  • 1 month later...

Here is my way to make more money in your 401K, this actually works and it is what I do.

In fact I will 100% guarantee you will make extra money in your 401K if you do this.

 

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Two charts here BXM the buy write index, it is the theoretical returns on the S&P 500 on a covered call strategy. This is a little less choppy as you have some downside protecting because of the covered call but a sharp drop after a certain point.

And the SPX, that is S&P 500 index.

Nothing special here.

 

The line in the bottom is a modified SMA (simple moving average)

You could do it on yahoo less the colors or how I did it in Think or Swim for free. I did it with a script in Think or Swim but you have to pay Thinkscripter beer money for it.

No big deal and anyone can do this.

 

What to do to make extra cash.

Look at the grey line, when the line is grey you stay in your favorite fund that is doing well. Most plans have a small basket of funds to choose from.

You have three basic choices,

Cash that is a money market

Bonds

Or a fund that is based on stocks known as mutual funds

The best choice is almost always some mutual fund.

You can track them in excel here is a site that has a ton of free excel spreadsheets

http://www.gummy-stuff.org/Yahoo-data.htm

I have been using Stock Finder just to save time but it is not free.

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I been in FTCHX since March 2009

 

The line on the chart has three colors Grey, Yellow and Green.

The yellow is caution be aware and the green line means out of mutual funds and go into cash. Add as much extra cash to your account as possible.

The trick is when the market is going down you are adding in more cash.

401k's have a maximum yearly allocation of 16,500 dollars. And a higher catch up after a certain age, I would have to look that up.

Not all funds will allow you to do this but what I did is when the market was going down I was putting in my whole check into my account.

That is correct 100% of my check. By March of 2009 I was near at my maximum for the year. Of coarse opportunities like this do not come around often.

 

Unfortunately many people do the opposite. They pull out of the market and stop there contributions.

By doing this they effectively compound there losses. You see they trade out at near maximum loss and do not trade back in until the market has rallied for some time.(many still have not got back in) They would have been better off just leaving it alone. I saw several people make this big money loosing mistake. When I when to the finance dept at my work to adjust my contributions she assumed I was going to stop my contributions like everyone else was doing. When I told her what I wanted to do it took her a minute to grasp it. Nobody was upping there contributions.

 

Another thing about upping your contributions to as much as you can stand is you will be keeping a close eye on the market and trade back in so you can lower your contributions to normal again.

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To the OP, yes, you can make a comfortable living off investing in various financial markets around the world... No, you cannot learn how it's done from a scheme or internet kiosk... Much as anything else in this world, there is no free lunch and you have to pay your dues, along with taking your lumps in the learning process...

 

Earning 100% return on your investment is a lofty goal which I doubt you will be able to achieve in the retail market... Now, if you have $1 USD million and want to invest in hedge funds, then this may be a target, but hardly a slam-dunk...

 

To those who think that the markets are nothing more than a gamble with a very high risk, I used to be there with you... No longer as it's an industry that has establish practices & rules for success, much like anything else in life... You do your homework, take emotion out of the equation and invest with confidence...

 

The current US markets are up close to 60% since the lows of this past March... The Bears got out and the Bulls have made a lot of money since then...

 

If you have little capital and are looking for higher multipliers for ROI, then you may want to investigate the forex currency markets... High leverage and small moves in the currency markets can spell respectable earnings... Especially with the volatility of world currencies today...

 

Good luck...

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  • 2 weeks later...
  • 2 weeks later...

Another one too. You can see the market tells you when it has a problem. And you can see when it changes its mood. This is the TICK index for the NYSE,

the TICK = advancing issues - declining issues. There is a script on this chart also which adds some of the dodads on the chart.

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  • 3 weeks later...

Am I the only one who thinks a blind squirrel with a knee brace could have made money in the market since March?

Trying out this trade in GLD to see how it goes.

I am thinking 710 plus (1.25 x 16 commissions) is 730 at risk

10% 73 profit

15% 110 profit

I want to be thinking about taking this off around Nov 6 or so.

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The trade did not work out about a 8% loss. Need to do more work on Butterfly's. Pealed one off as it moved up which was a good thing that cut my risk in half. The mistake was no contingent order that was something I need to get better at and get a better plan going.

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Its good to see a fellow swimmer on this board. Hello love, options are my favorite topic. I'm on my thinkorswim accout many hours a day, not because I have to but I really want to master this business. I am not an expert by far and don't pretend to be but I am pretty confident in my style. This can be a high risk business and most people lose money and I have lost my share but have refused to give it up what for me is the greatest business in the world. There is no one particular option strategy that you can bank on, the reality is that you must learn to use multiple strategies. I saw in a post, covered calls mentioned, well, let me tell you first hand, you can lose big money and its actually one of the most risky strategies out there. Most newbies often start with covered calls, thats where I started, unfortunately. Then, there are trades where you have say, an 80% chance of success, but what happens the other 20%? Big losses can happen with these high probabality, high risk trades and the real winners in this business know how to adjust and/or morph trades. So, the name of the game is the ability to manage risks and thinkorswim gives you all the tools you need but you still need to learn the profession. Good luck!

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That is my idea to become consistent at this, other people do it so I think why cant I.

With this I can make a living in Cebu or elsewhere. My plan is to do this in 9 years but I may be able to do it sooner.

I am thinking to have a few years at minimum of trading at the portfolio margin level.

 

One of the things I realized is the time difference,

time.png

You have to work at night, got to work to make a living. Really this is no problem to me.

But this brings up the next point and this is the one I feel very concerned about is safety.

You are doing this "stock trading". Maybe I should just say I trade iron condors, calenders, double diagonals and butterfly's that way they will have no idea what I am doing, I don't know. At any rate I am afraid the word will get around I have more money than the bank, that is my fear as it can bring on risk. I don't know what to do about this yet. Maybe it is not a real problem.

 

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I should take this off tomorrow and call December done. They way the market has been it has been way to easy in the last few weeks. The real test is when we get a protracted down market which I think will happen sooner or later. If I can pull some profits out of that or at least keep close to break even I will feel much better.

I am thinking of continuing using NDX, SPX, RUT, OEX, and MNX. These are cheaper to trade in commissions and they get special tax treatment, 1256 Contract, as they are cash settled indexes. Any gain or loss from a 1256 Contract is treated for tax purposes as 40% short-term gain and 60% long-term gain. Obama has tried to get this repealed.

I am thinking of doing a couple of low beta stocks like IBM, MCD, XOM and AAPL for diversification. Well AAPL or IBM is not low beta but I think they are solid companies. Maybe do some double calenders and double diagonals on these in the next couple days.

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That is a nice looking double diagonal, and if you were to close that trade at this time as you have mentioned, you'd be pretty happy no matter what. They are very similar to the double calendar spreads and it is a debit so that is all one could lose. The killer for those trades are major moves and ofcourse, volatility. If you are concerned about a major down turn in the market and you like to trade an iron condor, what you could do is just customize the order so that you have an extra put option per ten contracts, then sell the extra put when its safer to do so. It will reduce your profit potential but you will sleep better. Or, if you are in a profitable iron condor trade now, you can lock in profits by buying a vertical spread on both sides, which makes a broken winged butterfly on both sides so not only will you have potential to make a lot more $ with a major move but you have now drastically reduced your margin requirement and are freed up to enter another trade. These iron condors are the focus of my efforts to master option trading.

 

This is a doable business for those wanting to learn but I also recommend paper trading for at least 6 months or so. And even then, expect losses. Also, only a portion of one's portfolio should be allocated for this and never to become greedy, you will only get slammed eventually. This can be done and many can make a living but its definitely not for those who just want to put on a trade and forget about it, nor does it require monitoring all day (like me, lol). Its much better to be proactive and on the ball. Its still a dream for me at this point to live off of this but I can surely see that it is possible. I just want to be careful with my words for anybody else out there who is thinking of trading options because there is a huge learning curve.

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