This market is all over the place. I had decided I would stay in cash on sunday because I expected volatility. If I wasn’t just actually paper trading I would have done that but since my picks don’t really matter I’m learning how to lose money, very well I might add.
Is there a way to trade this? It’s hard to even know where or what to short, if at all. I know in major downtrends you can chose sectors like utilities, healthcare, and consumer staples, but this is just everywhere.
Volatility is your friend. It is what gives you the potential to make money. I'm loving it...having a friqn hayday. Oil is handing out the pain but I'll keep selling puts into down moves, offering up some calls into any up spikes and rolling the tested ones...gotta turn around at some point right? haha
How to trade this type of market?
It's good to know your killing it AC. It's seems like it's settling down now, but I for the life of me can't see where to buy what until there is clear direction (Looking like Financials?). When it does show a reversal signal I know that's where the money will be made. I just don't know which signal to trust.
Oil and Gas all down, has been, makes sense. Could go long for a while but I don't have that kinda money or time.
Services sector not doing too well except slight uptick with HD and LOW (Housing on its way up?)
Ok, why the hell is Mcdonalds up 4.5% on a change of CEO...What?
Healthcare declining. Utilities aint budging. Smart money warming up to the idea of moving to cyclicals but not quite yet?
Well if REIT's are down then real estate cant be looking too bright, then who the hell is buying home improvement stocks? I don't get it... I don't get it...
I don't know if I'm killing anything but I'm having a blast.
Volatility creates opportunity. Who cares why something moves...there will never be a way to know which events matter and/or how much they will effect anything. If you think the MCD move is overstated then sell it...but sell it with a strategy.
If nothing else sell junky high volatility in your papertrading account everywhere you can and see what happens.
Thanks for the tips, AC.I don’t think I realized just how quickly things can turn around. I’m caught somewhere between thinking the market was gonna stay low for the rest of the week and worried it’s gonna turn on a dime against me, when if I would have just done what I thought and bought FAS when it turned from 107 I would be up right now.
I’m not gonna trade it because I just don’t have the confidence in my trading yet and just can’t get over the fact that I feel like everyone else knows something I don’t but, I’m going on record saying I don’t trust the MCD gap up. Unless the last guy was out drowning kittens and this new guy literally shits positive earnings reports, I don’t get it. Time will give me the confidence to trust myself with things like this one way or the other though.
Doing a lot of sim trading will help to build that confidence. The first problem I would address is thinking anybody knows anything...especially yourself. I have no idea what AMZN or GOOG are gonna do for earning...prob releasing in second. But a sold a ton of junky premium in my simulator in them which will give me a chance to practice managing a winner or loser tomorrow morning. As long as neither moves over 30-40$ in either direction I'll have some winners. And I had great practice this morning...took FB off for a huge win and had to manage BABA back into a small win. Took off some winners in USO and re-established new positions...managed some positions in GLD, SPY TLT etc. Learning how to turn losers into scratch or wins is a big part of trading. But it takes practice and learning.