I am really not paying attention to the futures because I am losing faith that futures are actually good indicators of what the day may bring. As for yesterday, I was up on the day, mainly to making the "balls to the wall" trade of being heavily short. It worked out, so i guess everyone gets a little lucky. In terms of economy, we still have big problems - our deficit is a problem, as well as umemployment.
When I say RF is shorting 100 shares of xyz at $15, I AM NOT BUYING SHARES OF XYZ.. When I short it, I am in theory "betting against" the stock and am selling short the stock or etf. What I am pretty much saying is "i see xyz is at $15 but I think I can buy it at $12, so I will sell short 100 shares at $15 and cover at $12 for a $3 per share gain - $15-$12=$3. It is risky because you max profit potential is only 100% ($15-$15=$0) but on the flip side, the losses can be unlimited. So if XYZ got bought tomorrow at $40 per share, I am in big trouble and have booked a loss of 166%. So, it is important to research all shorts. Index shorts (ex. SPY) track the S&P, so normally the S&P only moves 1-2% max on a day, so you see the loss potential is less; however, if market tanks, stocks normally tank 3-6%, while an index may only tank 2-3% because it's so diversified.
Housekeeping: I have updated my portfolio and scroll down to see my portfolio views from last night. I also posted a Auto Sales Recap from Aug. I make these printable, so feel free to print this, read on lunch break, or whatever works best. Just click buttons on top of document to make it more zoomed in and find print trigger.
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