Well, despite my “oh” I’ll take a week off of swing trading post yesterday after my three losers in a row, and my near -$300 in loses over the last week with my real money trading, I entered a new position today while I was out and about at meetings – from my phone.
At the time, it looked like the market was going to close the second day in a row red. FAZ had spiked to $23.60, and given everything the last 36 hours, I was thinking technically indicators were looking bearish for maybe the next couple days. I thought I was smart, getting in 10 shares long FAZ at $20.70 on what I thought was a pullback. Wrong, what a snap rally into close right after I bought! I have to say that was a rather bullish close.
In any case, I’m into FAZ on the hook for $207. I know I’m a newbie, but I don’t believe in this V bottom we have going on with the indexes – I think we either test new lows over the next couple months, or have a significant pullback before we go higher. It may be safer to test out this theory through options but I’m not sure about the timing of it all. The financial sector hasn’t fundamentally healed but prices are sure proving me wrong at this stage. My plan is to hold onto FAZ without a stop. If it goes down to $10, I will buy another 10 shares. If it goes to $5, I will buy another 20 shares. This will put me on the hook for $400 – an amount I can live with losing.
What do I hope to get – I can see FAZ going back up to $40 or $60 in the next couple weeks – so a double or tripling of my money. Under my doubling down scenarios, my plan would to be at least to break even, but I see possibilities with making money there too.
I have said on these internets holding the triple ETF’s overnight is foolish. There are the decay issues along with crazy volatility.
I can only learn such lessons by putting money on the line, amounts that I’m comfortable with losing. I sure liked the lesson I learned on my bottom-fishing positions but we will see if this one turns out to be more sour.
PS: Did paper trading during the market open, will post my results with my trading prospects tonight.
