That sounds like one of those get-rich-quick crazy claims you see on late night TV. Not true. Look at my previous post. I told you to buy (SLV) calls. Specifically, I told you to buy the Jan 2010 $20 calls. I bought them Friday. I am now up 20% and Silver is heading higher as I write this. I have not sold anything yet. I think this trade has a LONG way to go.
A quick update on a couple trades I told you about earlier. First is the long (DIA) trade. I added to the position yesterday. Here is my thinking with this one. As of the open this morning, 8 of the 30 stocks are currently trading below $15. There isn't much further for these stocks to go. Stocks can only go to $0. And seeing that the Dow is a price weighted average and not a market cap weighted average like the S&P, there has to be more upside than downside to the Dow. Just do the math. That said, I bought a small postion last time and a small position this time. Normally, I break down a purchase into 3 purchases when I buy an investment. This time I am breaking it down into 5 purchases. I am leaving some powder dry here.
The other trade I mentioned earlier is the long (TIP) trade. This trade is looking VERY nice technically. It is very close to breaking above it's 200 day moving average. If it breaks above the 200 day, it is going to have a lot of support to the upside. It would take a lot for TIP to go lower technically. The fundamentals simply don't support a dramatic downside from here.
Keep in mind, options are used for trades and stocks/ETF's are used for investments. I use investments for trends I see that I can't pick a defined end to. Trades are for trends that will grow quickly and fizzle eventually. Options allow you to take on very limited risk and reap huge rewards. Stocks/ETF's allow for a trend to play out without a time-defined endgame. Keep that in mind. Until next time, stay low risk..
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2 comments:
Mr Yeager!!
Hey, its Bob Miko, and I am thrilled your into the game... And what a game it is!! Are you a trend follower?? That is usually mainly my trades, I consider myself a long swing trader,staying in positions 1 month to six months but not to say I am in and out,, You mention gold and it's tear,, keep PTM back in your mind,, it has strong correlation but not exactly the same return.. LOVE YOUR BLOG and keep rollin....
Good to hear there are a couple of us left!! I stay in positions as long as necessary. I initially recommended GLD on Nov 20th. I am looking for the technicals to tell me to get out. I haven't seen anything telling me the run is over yet. I look BIG picture and usually use ETF's as my trading vehicle to take advantage of the trends in the market. Love PTM. I was looking at it today. You beat me to it! Stay in the game man. Take advantage of the ups and downs. Volatility = Opportunity.
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