the Stock Market

[Every Road Leads Home]

I've always invested in the stock market but was always very conservative and kept most my cash out of it. However, once I became disabled I had lots of free time and studied up on it. In the last four years i've grown my IRA more than the last 14. Now i'm kicking myself because had I got into it when I was 20 I'd probably be able to retire. I do have a great financial adviser as well, my grandparents used him for 35 years and did quite well by him so I do trust him a lot. I have two IRA's, one I manage on my own and one he manages. The one I manage i'm a little more aggressive with. I don't have any set criteria for when I take gains. For the most part my plan is to keep letting things grow until I retire and/or I need it. I have a mix of mutual funds, bonds and stocks.

I'd like to start doing some day trading. It seems very possible to set a goal of making $100 per day which would be all I need to live on. I can't find their website/blog but a few years ago I was reading about a couple who was on their 6 or 7th year of full time RV traveling all from stock market earnings. He did a lot of options which I still don't understand.

 

[gojo]

There's so many strategies a trader can use with Options and that's why they're confusing. A stock investor might use covered calls, a swing trader might trade options as you would trade stocks as I do. One thing I love about options , you have a limit loss. Find yourself a strategy that might fit in your investments.
I have met some stock investors that won't just sell a stock out right, they'll use covered calls. If it don't go their way, they'll make money off the option and if it goes right, they'll sell their stock and make money. I'm just trying to simplify this. There's other fancy words to use.

Some say if you make such a high percentage, why not invest more. Well there are day when the market is flat. It doesn't move either direction
,then you would lose everything. You want movement............

My limit is $500 or less, like I said limit loss, there is a possibility you can lose it all. Then you look at your average to see if your winning or losing. Sometimes if I see no movement, I'll sell at a lower price and take a small loss.
And yes I use charts..................

 

[vsession]

Options confuse me, I did some reading about it but I’m not confident enough to trade them. With more experience in the market, I’ll reconsider this option.

I like to have most of my money out of the market, I had mutual funds an bonds before but since march, I do all my trade with stocks. What I like the most about day trading is that you don’t have to go through the gap that occur when the market is closed. My stop loss is always at 2%, I use chart without too much indicator, I’m more interested at the price and volume. I need to try the strategy of selling half your shares and let the other half growth, you set a new stop loss that if triggered, your gain/loss is 0. Any of you use that?

No movement is so boring, I always try to be done with my trade before 11h00, all day long looking at a screen is not something that I want to do to often.

 

[gojo]

I only trail stops on the futures markets, and I'll average up on 20% moves, using profits , pyramid style. On futures I only trade on paper. One month I made  around $70,000 (LOL) play money,started with $3000.

I'll probably end up taking all my experience to the grave. Seem like most fear these types of markets.

What I like about Options, you leverage you money in a short time, with limit risk.

On Stock Options, I'll watch the market Thursdays about an hour before closing and on Fridays (expiration day) I watch it most of the morning for a big profits. I usually will buy near closing on Thursday or at opening on Friday. Fridays if there is a gap up or down.
You can get em for pennies near expiration. Just like penny stocks, it don't take much of a move to make a big profit. On stock Options I like to see a daily volume around 5,000 - 10,000 or more.

 

[gojo]

Here is some chart indicators I use to figure when a stock is bottoming out. We're not at that point at the present, but it's a good thing to know. Sept. and Oct. is getting close. Time for a 20% correction? HUH..... Hope not.

On the chart indicator, PPO-ADX, you will see a squeeze with the two lines when it is getting near bottoming out. For safety buy at the red and black line crossing. The chart is self explainable, if your familiar with them.

On the Bullish Engulf, you will most likely see it way before closing, on that day, means you can buy before closing.

If anybody have charts to show, I'm always willing to learn more.

 

[Every Road Leads Home]

I think a correction is near. Most my investments are geared towards the long term so I just ride them out. I think the uncertainty of our two choices for president will cause a temporary disruption as we get closer to the election. Historically speaking when a president is up for re election the stock market fares well and when two new candidates are running it's had an average drop of 2.8% but analysts are predicting it might be much higher than that this time around because the market favors certainty and this election is anything but that. However, it's just a bumpy road and eventually it smooths out.

 

[vsession]

Brexit made that pattern in a lot of stock. Look like QQQ is your favorite stock, I trade mostly with NFLX. I did read about all the indicators used in technical analysis, I think I was looking too much at them and it was not helping. Now I try to go with price, volume, support/resistance, 10-50-200 sma. I still need more experience but since most trader lost money on their first month, I was not ashamed...

The past 2 years I was just using mutual fund and did not worry to much about them, I had nothing to do early this year (work injury and surgery) so I learn about trading individual stock. Now I’m hook!

A correction is fine, I see that as a buying opportunity.

Thanks for your input gojo and Every Road Leads Home

 

[gojo]

Being that you're a day trader, I posted NFLX, 3 day, 10 min.,intraday chart. NFLX is also on my long list.

Used  the Williams%R indicator. Notice all the short term buys when it touches or passes through the -80 line?

 

[vsession]

I had a position from August 9 that did not trigger my 2% and sell them yesterday, I never want to go through the weekend, currently I have 0$ in the market. I have only 1 full day per week that I can do day trading (I’m not a real one who make hundred of transaction/day, often it`s 1 or 2 on the same stock).

Willams%R is one indicator that I look with RSI and ADX. I try to go more with support/resistance and l like to trade the same stock for which I usually remember the price.

Do you use any other software than StockChart?

 

[gojo]

I've always invested in the stock market but was always very conservative and kept most my cash out of it.  However, once I became disabled I had lots of free time and studied up on it.  In the last four years i've grown my IRA more than the last 14.  Now i'm kicking myself because had I got into it when I was 20 I'd probably be able to retire.  I do have a great financial adviser as well, my grandparents used him for 35 years and did quite well by him so I do trust him a lot.  I have two IRA's, one I manage on my own and one he manages.  The one I manage i'm a little more aggressive with.  I don't have any set criteria for when I take gains.  For the most part my plan is to keep letting things grow until I retire and/or I need it.  I have a mix of mutual funds, bonds and stocks.  

I'd like to start doing some day trading.  It seems very possible to set a goal of making $100 per day which would be all I need to live on.  I can't find their website/blog but a few years ago I was reading about a couple who was on their 6 or 7th year of full time RV traveling all from stock market earnings.  He did a lot of options which I still don't understand.

I had a position from August 9 that did not trigger my 2% and sell them yesterday, I never want to go through the weekend, currently I have 0$ in the market. I have only 1 full day per week that I can do day trading (I’m not a real one who make hundred of transaction/day, often it`s 1 or 2 on the same stock).

Willams%R is one indicator that I look with RSI and ADX. I try to go more with support/resistance and l like to trade the same stock for which I usually remember the price.

Do you use any other software than StockChart?

I been having a hard time posting on this site with my windows 10..... I'll post and see what happens................I think It's AT&T, they seem to be slowing down.
I subscribe only to StockCharts, they have more than I need. I love the live charts. I been trading the markets since 1988.
I first started with noload Mutual Funds (LOL). Back then I traded as you would swing trade stocks today. I would go in an equity  funds, when I made 10% or more, I'd switch back to money market fund. Back then, the touch tone phone was the best way. They didn't care much for my type of an investor. I might do this cycle two or three time a month. Finally they send me a letter to stop doing this type of trades or move my funds elsewhere. So, I would find another noload Mutual Fund. Today most have rules, you have to be in one sector at least 30 days or more.
Beginning of 1994, opened an account with Accutrade. Touch tone phone, no need to speak to a broker, WOW!. And I would call a news paper company for live quotes about 100 times a day, to keep an eye on my trades (while at work) .

I got HOOKED also' But I swallowed the hook and sinker...........................

 

[IGBT]

I feel your pain, been there, done that.  When do your calls expire?  If SDRL stays at $16, and your calls expire, you'll be $1 in the good if you bought at $21.  

Selling covered calls minimizes risk, of course.

How about the price of oil?  Do you think it's going to keep going down?  An eft of oil is traded as USO.  It's at a 5 year low, $27.90.  I claim it's going back up.  I think it has to.  Of course we might figure out how to drive cars and trucks without oil, but I don't think that's going to happen soon.  

Here's my stock tip of the day: Buy USO at $27.90, and sell a January 17 $29 call for .83.  Between now and January 17 you'll make 3% return if the price of oil stays the same, or possibly 6% if the price of oil rises 3%.  But if USO goes down, say to $26 (not very likely) then you sell a $27 call.  It's mathematically possible to lose money like this, but not likely, as the price of oil is not likely to collapse much further.

Just revisiting this thread where Harmonica and I were talking about Seadrill and USO and others.   My how the worm turned.

Today Seadrill is $2.63 and I was worried about it dropping from $21 to $16.   I sold my stock at $5 something quite awhile back for a big loss.

USO too, it is $11 now.

My account would be hurting but for a timely shift to Thompson Creek mining company bonds paying 12.5% a year.   I bought them at 19% to 25% of par after buying some at 90% of par.  They were just bought out and the bonds are going to be paid off at 100% of par.  I sold before that but made up my loss in Seadrill plus a little bit.   If I had held those bonds just one week longer I would have made $50,000 more.  Oh well.

Stock market is HARD.  You really need luck on your side if you want to do any better than an index fund.

I was up $30,000 earlier this year on Gilead and now I am only up $4,000.  Got greedy and Gilead whiffed.

 

[Every Road Leads Home]

I was up $30,000 earlier this year on Gilead and now I am only up $4,000.  Got greedy and Gilead whiffed.

I find this the hardest part about investing........knowing when to bow out or stay in.  Controlling greed is a hard wall to climb.  I've adopted a method that works well for me.  I pick a percentage of gain I hope to obtain and always sell when/if the goal is reached.  Usually 12%  12% is my yearly goal as making 12% yearly on your money is really good by most people's standards.  My investing is also geared towards the long term though.  So if I can maintain a 12% yearly gain over the long haul, I'll have a very healthy retirement.  But some stocks I'll set a higher return on if I think it can make it, usually in my smaller account I use for riskier goals.  I set a 30% goal on Facebook and made it.  I've made money on facebook a few times.  I still think there's good earning potential there, and have a little bit wagered on it still.

 

[vsession]

I was up $30,000 earlier this year on Gilead and now I am only up $4,000.  Got greedy and Gilead whiffed.

You didn’t have a plan to cash out GILD?

My first month, I didn’t use any plan and that was a big mistake. Now I have one, but still hesitate to cash out. When I started trading, my portfolio was all mutual funds at -10.8% YTD, I lost the gain of 2 years which was +6.7% and +5.8%. These funds did not even recover since then, I had 6 of them well diversified with a low fee. My portfolio is at +6.01% (-10.8% to 6.01% is not too bad I think) right now I have 0$ in the market, so if I do nothing up to the end of the year, I’m still happy with that. I follow my plan before entering a trade, even if I lost money, it will only be 2% and it means wrong timing. I give myself 1 years and will reevaluate if it’s worth the trouble or not. Like you say, the stock market is not easy, but it’s very challenging. I don’t need to make 50%, covering the inflation and the cost of living while maintaining the capital is my goal, augmenting it is a bonus. I’m not retired with a pension, I’m 33 so I need to play it safe, I do not gamble with trading stocks. Looking at a chart saying I should have bought that stock at that time is not like pushing the buy button when a portion of your capital you work hard to get is invested without knowing, even if the technical give you a good buy signal, that the stock will turn against you.

There a big difference between investing and trading, for the new reader that doesn’t know the stock market, read the difference and chose the one that you prefer.

Every Road Leads Home : Do you have a stop lost even if you're willing to invest in the market long term?

Feel free to let me know if my thinking doesn’t make sense.

 

[Every Road Leads Home]

Every Road Leads Home : Do you have a stop lost even if you're willing to invest in the market long term?

I don't.  My long term investments are in about 20 different things.....some bond funds, some stocks and some mutual funds.  It's pretty conservative so I'm not worried about it going down, well going down and staying down.  It's set up risk wise for someone in their late 50's early 60's.......as my grandmother's financial adviser did the initial set up.  She lost half her money in 08 when everything tanked and by the time she passed in 2011 it was all back plus.  So I figure mine could drop in half if we hit a bad recession again, but I won't panic, let it ride it out and it should rebound just like it did for my grandmother.  That was the financial adviser's advice and I trust him.  He did very well for my grandparents.  It's a chunk of money I don't plan on needing for 30 years so I have time to ride out any nasty dips the market incurs.

 

[gojo]

Just revisiting this thread where Harmonica and I were talking about Seadrill and USO and others.   My how the worm turned.

Today Seadrill is $2.63 and I was worried about it dropping from $21 to $16.   I sold my stock at $5 something quite awhile back for a big loss.

USO too, it is $11 now.

My account would be hurting but for a timely shift to Thompson Creek mining company bonds paying 12.5% a year.   I bought them at 19% to 25% of par after buying some at 90% of par.  They were just bought out and the bonds are going to be paid off at 100% of par.  I sold before that but made up my loss in Seadrill plus a little bit.   If I had held those bonds just one week longer I would have made $50,000 more.  Oh well.

Stock market is HARD.  You really need luck on your side if you want to do any better than an index fund.

I was up $30,000 earlier this year on Gilead and now I am only up $4,000.  Got greedy and Gilead whiffed.

Did you buy covered calls on USO?  I take it you didn't....

 

[gojo]

The chart I'm posting can be used for long term traders. A lot of investor don't know when to get into a stock when it's moving south. Some will average down, that can be dangerous. Guess I'm preparing for a correction

.

Being that I trade Options and use the Strangle or straddle strategy, shouldn't bother me. The problem is I don't do  it all the time. I get greedy too. Using these strategies is playing it safe when the market moves. On a correction you'd make a killing. Then I would be able to buy that Class A  motor home...

 

[gojo]

On post #195, Restate my question, my mistake.
Did you sell covered call on USO?

 

[IGBT]

On post #195, Restate my question, my mistake.
Did you sell covered call on USO?

No, I have never bought USO.  I stayed out of oil entirely after Seadrill fiasco.

 

[gojo]

CRM, Might be a buy signal in  the near future. It already has a buy signal if you follow Slow Stochastics indicator.  I might go long on this one.
Not crazy about it's stock options.

 

[IGBT]

CRM, Might be a buy signal in  the near future. It already has a buy signal if you follow Slow Stochastics indicator.  I might go long on this one.
Not crazy about it's stock options.

I have never liked Salesforce.  Sketchy and no profit to speak of.