Replies to post #55835 on Zeev's Turnips Patch-No Politics (ZEEV)

[gary schrimpf]

Thank You Sandy:

You have pretty much expressed what I was about to say. I am amazed the same thoughts hit you about the same time they did me.

After perusing many boards throughout the day the opinions, charts analysis, and the bull/bear arguments are enough to drive one to drink.

I have a strategy similar to yours Sandy buy not quite the same.

Based on "my" intuition about a week and a half ago I bought puts on MSFT, DIA, IBM, and the QQQ's with expirations from April until September. (Luckily they are all positive for the moment though that is not a great concern). Meanwhile I have traded MSFT, IBM, and the Q's both short and long almost recovering my entire investment in the puts, never holding overnight. (another lucky break-(vbg))

At this point it is of no concern to me where the market goes as long as I can make short term positive trades.

Unless the market truly breaks out massively on the positive side (which no one seems to truly expect) I will hold the puts for an extended period of time as long as I almost own them for free.


I may not make as much as some others in the market, buy I don't have those nasty headaches either.

I might add though that people like Zeev and Sylvester are amazing to the point they can both trade and post at the same time.

I still have to learn to chew gum. -gg-

[Joe Stocks]

>>>The fact is, though, that predictions for time frames measured in months, even weeks, are always going to be less dependable than those measured in minutes and hours...plain and simple.

Sandy, I agree. However, I think daytrading is just part of some of our portfolio's and the longer term discussion is helpful for managing those portfolio's. I know in my case I have a trading account that I daytrade. I have a business account that I do position trades. Then my wife and I each have SEP accounts and we each have rollover IRA's from previous 401K's, etc. I also have a back-up trading account.(In addition, I manage several other accounts that I'm not allowed to daytrade as these clients want more conservative investing.) If you have any kind of portfolio of size at all, personally I can't see how you could Daytrade the whole thing. In my case, for my total portfolio I would be daytrading 7 accounts just for my own stuff. I would think that most individuals have a least two account, a investment/trading account and an IRA.

That brings up another point here. I much more enjoy the swing trades and position trade ideas thrown out here. Although I don't daytrade trade all my accounts I, I am always looking daily for new ideas for them. Daytrades are ok but I just have time to follow someone elses in addition to mine. Trading what you see works to a point but I also think most traders have a need to be looking out in to the unknown some too.

Joe

[Paul A]

Sandy- great post! One thing that caught my attention was your preference to day trade rather then take positions..

I spent alot of time over the last few years (and still to this day) trying to make a convincing argument for day trading as opposed to position trading say with a 3-5 day avg. hold time. The only difference I have found was that day trading requires a special personality.. All the 'demons' like Ego, Fear, shoulda/coulda/woulda all play out in seconds and it requires a special person to take lumps/make a killing, and not walk into the next trade carrying the scars from the prior trades.. By playing my positions out over several days I find it easier to not let these feelings get in the way of my plans and I sleep much better at night.

Obviously- like you said.. each person has to determine what works best for them.. but actually- what I really wanted to say was that I didnt entirely agree that its easier to speculate on minutes/hours rather than days. For example- if I decide to play CSCO the week of earnings release, I can position myself 5 days ahead of the report speculating where shorts would cover and I can average into the position if my initial entry is poor. Same as day trading- Im planning a position, but I give myself more flexability to ride the voliatility with the intentions of ultimately profiting from the tug of war..

As for averaging down.. Zeevs catchy phrase 'plan the play/play the plan' applies here... Most of my positions (even day trades) already have averaging up or down as part of the plan.. I think it can be extremely valuable and wouldnt write off entirely. Again- it comes back to those emotional demons. You average down in an attempt to have a more realistic exit price given the trade is going against you, but the main thing obviously is to plan for a failed trade and take those lumps when the plan dosnt play out.. Being a 'stuck-holder' is someones choice, but its really someones inability to take the lose and admit defeat rather then the actual averaging down thats to blame : )

Hope you dont mind- I bookmarked you! I love reading your posts in the short time you have been here.. A definate plus for the board to have you here if I may say so!