lets take QQQ for instance ( whose stocks i wont be working with - thats anlther story). i would hold nothing overnight. lets assume im working with 500k.
each AM i make an On the Open order to buy each of the 100 qqq stocks (500000/100). so, 5k per stock. i set the stop for eack stock at -.4% (a -.4 trail is better in my mind but i wont get into that). and theres absolutely no Limit (prof takr) set. run it til closing.
So each day i have no ceiling on gains and a quick stop for losers.
what are your thoughts? i know SOME stocks do a 180 turn around after reaching -.4%, but waaaay less often than -.3 and -.25.
I could also sell short when it hits -.40.
fees would be about $75 a day on 500k. high, but well worth being able to cap loser stocks. look at it this way, one stock losing 1 point is a 50$ loss.
where does the method fall short? and yes id change the stop depending on a stocks volatility
Submitted May 08, 2015 at 10:38AM by fastneasyname http://ift.tt/1H6nhI9
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