How well do those 3x funds work? If your using TZA and the dow drops 200 points how much of a move do you see?
I use Interactive Brokers with Ninja Trader and it has chart trading. I don't know if that could help you.
It seams like when I have a tight stop loss I always get stopped out. Does High Frequency Trading affect anyone?
I'm looking for more conservative trading strategies that last about a day because I have to go to school from 7:30AM to 1:03PM.
Is their a way to use options to take advantage of apple's earnings report? Can I buy a call the same day at the money and exercise it after it rises $25 then sell my shares?
Thanks..It really helps to get advice from people who have been trading/Investing longer then me.
Hmm those 3x track the Russel 2000 index which is pretty similar in movement to the DJIA itself. For example, TNA was at 36 yesterday morning premarket and is now trading at 41.8. That's just to illustrate their movements though, and in no way am I suggesting that they are a safe investment, rather quite the opposite as they are very risky. You have to also take into consideration that ETFs decay. An example - TNA was at 80 in mid July, dropped to 40s now. Even if the Russel 2000 reaches its prior mid July level, TNA will not touch 80 again because of decay. Simply put, if a stock falls 50% in value, it needs to gain back 100%, same idea applies. This won't be a problem if you hold an ETF few days.
Your tight stop loss might be too "tight" in the sense that if all depends on how your stock behaves such as if it is prone to swings - you have to adjust it for your respective stock. Since you said you have school from 7:30 to 1:03 pm, there aren't really conservative trading strategies (besides pre-set stop loss limits) that last a day because things can change in a day very fast. You could try trading in the opening bell or just 15 minutes after market open. That way you can take advantage of large volume and fast price swings. For a conservative buy and hold strategy, you can always buy the stock outright and buy the put option with the same strike price you bought the stock (rounded) and then in the event the stock moves to $1 you can sell your stock at whatever the put contract strike price was. Thats about as safe as you can get.
About buying a call to take advantage of earnings reports, someone else will know more than I do. But what I can say is that the price of the option will have already priced in an expected movement because everyone else is thinking like you. Also, you don't need to exercise the option and get the shares, you can just sell the option itself. I put some good threads that I used to learn about options from, and they have questions that only someone who's actually traded them can answer, better than I can: