Originally Posted by
scambo1
Since I discussed ETFs earlier, I thought I would use a real world example for everyones education. None of what I am saying is investment advice or recommendations to buy or sell anything.
I will use two 3X etf sectors for the example and the reader will have to pull up his own chart to see. The ETFs are FAS and FAZ (3x financial) and TNA and TZA (3x small biz). In my earlier investment discussion, I made a statement that the market trades technically...
All you need to know today is that the S and P support level is 1120 (technically). If the S and P trades and trends significantly below that (ie 1110 and trending lower), it has broken thru. Roughly the next support level with real resistance is around an S and P of 850...what this means is pull out your parachute 'cause you're in free fall.
Frankly, if you are a savvy investor, I have given you all the information you need for your investing day. Dont be rash, dont be greedy, and none of this is advice to do anything.
Spot on Scambo1.
I trade TNA, FAS and SSO (double beta). I don't really like trading the inverse. My favorite strategy is to sell puts in TNA at a .15 delta every 30 days or so. I buy them back after getting 80% of the premium. Then I rinse and repeat pretty much every month. It's a simple cash secured put. I know it's more capital intensive than some other strategies, but it doesn't require a lot of managment. If I get assigned, I sell the other side at the strike I was assigned until I get called away. What's not to like an 85% probablity of success.
I went to cash in my trading accounts on Friday. I'm waiting to reenter. I'm thinking this afternoon or tomorrow.
Now, if you didn't follow what I just said, get some education, start small and practice. If you fly an airplane, you can do this. Everything we do with a commercial airplane is risk management. Successful trading is risk management.