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« Making Investing too Difficult: The Fed | Main | The Three Big Stories »

September 21, 2007

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options trading

Both should have a balance, trading should never be a guessing game. Always plan ahead before making your move.

stock trading newsletter

I think a combination of both works best. Is the technical following up the fundamentals? If not then I quesiton why.

Options Swing Trader Tony

TA

How are you going to know where to get in and out if you don't use TA and Charts?

So your emotions then take over (which are 99% wrong in trading decision making) and you have to super exact entry and exit method - you're hosed!

Tony

Michael Calhoun

TA seems paramount. I hope your list of futures advantanges follows soon.

Greg Simonds

Interesting post. All too often all we see is a link to somebody's product. I thought it might be helpful if people interested in Stock trading had a place to go to see a large selection of software products. Maybe this will offer users diversity in the choices available to them. here's a commercial site with some tools not everyone is awate of:
http://StockIndustryRatings.com

Greg Simonds

Interesting post. All too often all we see is a link to somebody's product. I thought it might be helpful if people interested in Stock trading had a place to go to see a large selection of software products. Maybe this will offer users diversity in the choices available to them. This is a commercial URL, but it has some tools that no everyone is aware of.
http://StockIndustryRatings.com

Michael Glass

I tend to be more of a technical investor. However, I do think it's important to look long term first and make entry/exit decisions of shorter term charts. Even a fundamental investor should use technical indicators to help fine tune his entries and exits.

For example, on the weekends, I look at each of the major sectors to see which one are trending up or down. I then find stocks within those sectors that are moving for further review.

Then after setting entry/exits points of the daily charts, I use 15 and 5 minute charts to make my entry.

Effective Trade plans delivered daily from AccendoTraders.com

real time stock options trading

I do agree that TA plays the most important role in any ETF trade.

Bill aka NO DooDahs!

I'll add tax treatment and an easy one-stop-shop for market-tracking to leverage and arbitraging the cash/fair value split, and look forward to the articles.

oldprof

Bill-

OK, I'll put the advantages of futures on the article list. I think I have mentioned the subject a few times. Dan Rostenkowski (former chair of the House Ways and Means Committee during the formative stages of the Chicago markets) had a hand in developing the relevant law. Margin requirements and tax treatment are important. Liquidity and the speed of reaction of the markets is also big.

If a trader on vacation calls in for a market update, the report always starts with:

"Spu's are up 6.50......"
or whatever is appropriate. It is the single best equity indicator for stocks and a liquid means of trading QQQQ's, bonds, oil or whatever. Much better for traders than ETF'S.

It can be a pain to do the compliance to open a futures account, which may be why some of the NY guys do not bother.

On the sector fundamentals -- let's both watch to spot anyone really doing this!

Thanks,

Jeff

oldprof

Josh-

Thanks for the comment. Not everyone appreciates my humor. My son is almost 16 (the old guy got a late start) and he has been schooled in what he calls "Dad humor".

With your encouragement, maybe I'll repost here.

Thanks,

Jeff

oldprof

Tim-

Thanks for your interest and your questions. I am trying to figure out how to provide more information about the sector choices.

I promise to follow up more carefully in a future post.

Thanks,

Jeff

Josh Stern


Hey, congratulations on that Will Rogers bit from RealMoney. That was hysterical!

Bill aka NO DooDahs!

"since futures have some clear advantages"
I'll bite. Name them. I can see the inherent leverage of the contract, and the change in relation between "fair value" and "cash" as "features," but not necessarily advantages.

" until some research services come up with cap-weighted metrics for the funds"
In many sector funds, the top ten will come up on Yahoo! and are the majority of the holdings, one could do this themselves. Or, better yet …

One could fundamentally (or more appropriately, FundaTechnically, since valuation metrics depend on a technical criteria i.e. price) scan the universe of stocks and see what sectors show up with the largest representation, and then find the ETF that is closest.

Tim

Jeff,
I think your sector trading model has a lot of merit and I appreciate your sharing it with us. Do you bench mark against the SPY the sector universe combined? As a fundamental investor I am using ETF as sector indicators for individual companies I am researching. Back to your model, the last 30 days have been pretty positive (at least for me), I am really interested to see how your program works in a flat or down overall market. Again, thanks for the open sharing and it appears you have a winner so inquiring minds would like to know more.

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