i also think the fact that this week is a holiday week is playing into it too. seems the only people trading on short weeks are retail. thats why im still unsure if the market wants to keep bearing down on us or not.
Are we seriously sitting here FUDding a fucking 670pt gain? Guys, chill the fuck out lol
sure. i for one, think thats way too much of a gain in one day to call it a healthy market. and on the backs of low volume, on a holiday week, after tech and financials had their worst week in years.
suddenly having literally the greenest day ever in trading history right after that does not sit well with me. at all
They're going to wait and FOMO when we're up another 10%
happens literally after every sharp correction you nigger >in trading history not even close
Stocks Jump in Best Day Since [August] 2015 as Dollar Falls
I am interested in getting into the stock market but have never tried anything in it before. I have been trading crypto since June.. asides the crazy volatility crypto has, what are the main differences you would say??
no memeing here, just put it in an index fund. you're clearly terrible at this
I picked a helluva time to get partially out of crypto and dabble in the market. Mr Toad's wild ride.
Can someone explain how something like UDOW works? Its 3 times leverage of the DOW and has made 359% over the past 5 years. What's the catch? The only thing i could think of is that if the DOW list 33% of it's value you'd get liquidated or something.
He likely bought high risk contracts and couldn't sell them before expire. He didn't have enough money to exercise the option so he lost big
I also have a Tastyworks account for playing SPX options. Went from $60 to $120 today scalping SPX 0 days. Wish I would have just kept one SPX call I bought in the morning for $45 that was worth $1400 at close
Post trade history please
All beware of the power of betting heavy on options
You will be a rich man or a poor man by expire.
Easy come, easy go.
BASEDbook >he fell for the FB fud Im using these gains to buy a bottle of gin
yes if the dow loses 33% of its value your etf goes to zero. also you can lose money even if the dow remains flat or goes up due to slippage. you lose more money the more volatile the dow is and we're in a volatile market now.
eg, the dow goes down 6% then up 7% your 3x etf just lost money even though the dow is up overall
If the Dow loses 33% then you got (1-0.33)^3 = 30.07% remaining. Already that you do not know how leverage works means that you should step back before you lose your life savings because of a meme derivative and instead buy a book to understand how it works.
How do you figure out how much to hedge in options? 2-4% seems reasonable, but is there some math that makes it easier to decide?
Say I own 300 shares of microsoft, do I hedge with 3 options contracts or is it just whatever risk you want.
Can't trade SPX on Robinhood
If doubling your money was easy everyone would be doing it. There's no method of guaranteeing scoring a couple of bucks a day because sometimes you gain and sometimes you lose.
I just go all in options no shares. Shares only limit gains thank you very much
i mean realistically i would like to do it ASAP. I can hold stocks if i see the potential but im looking for quick money makers off day trades.
And its 100 dollars...im not going to cry to sleep if i lose it all so im pretty ballsy with it.
This is true, but longer term it is nice to have the underlying equities. I made a bunch buying puts on facebook last week (probably will tommorrow too), but I dont want to actually own that toxic stock. I guess in a real market dump I can buy puts on a valuable stock and exercise the option for discounts
what do you mean by spx? the sp cfd? the leveraged etf of the sp?
its easier to do with leveraged cfds sure but youll just find a pattern like Natgas Long $5 point and Natgas short $2 point
I dont mean historically, it has dropped that much before, I mean today they just shut down the market via circuit breaker
I mean technically, its the Fed or goverment that stops the market from crashing, they wont let it happen
Have we had a crash with leveraged ETFs in as much play as they are now?
It would be a very bad day. My conspiracy theory hat thinks that we are watching a planned release of bullmania right now to prevent this and de-lever the economy. If this is on purpose they are literally saving the free market. BUT THATS JUST A THERORY, A MEME THEORY
I hate to say it, but we have to thank /pol/ for this one. Last week was clear setup for a deliberate politicized crash, but weaponized autists sniffed out the game and memed up some insurance. (((they))) saw the danger of exposure and called it off.
How is daily resetting leverage different from regular leverage. I guess neither is good for long term holds
Your trading frequency is actually proof you're making emotional decisions and not logical ones.
Is it worth it to get robinhood gold? I don't see why not at the price per month is peanuts, but is it what you guys use? Asking for a friend.
no dow has never dropped over 30% on a single day.
I have bigger fears that the whole market becomes more and more correlated, as more private and institutional investors are buying into ETFs which track performance indices. So we will see only days where everything goes up or everything goes down.
yeh man get the +6k and yolo everything in F :)
I may be new to stocks but mamma ain't raised no sucka.
regular leverage you'll have stop loss at 2x leverage = 50% drop for example
daily resetting you dont. each daily returns are simply multiplied by your leverage wether it's 2x, 3x, or 10x
sorry I misread
There are daily resetting etf's for dow and such
and then there are monthly and 3 month resetting
do you really not know what SPX is lol. It's the S&P 500
you said it wasnt on robinhood , which it is, hence why Im confused
SPX is the actual S&P 500 Index while SPY is a S&P 500 Index. SPX options cost 10x more than SPY and with SPX 60% of your gains are taxed as long term and 40% as short term
your math is wrong lmao. That's not how its calculated.
Start $100. Index down 6% on first day. ETF promises 3x, so that's -18%. You now have $82. Index up 7% on second day. ETF promises 3x, so that's +21%. You now have $99.22
Assuming no slippage. That's how rebalancing works.
>^3 wait what that doesn't sound right isnt 3x of 6% 18% admittedly I haven't read the prospectus but still
nigger that doesnt make sense 60% of gains taxed? In what country are you in? Netherlands?