Hi Bob G.,
I would commend you for trading the SPOOs. The reason is because I could never really trade so closely. I get too nervous ;)
but on a simliar note, i do trade the QQQ which is the equivalent of the Nasdaq 100, to hedge the portfolio or on a swing trade. There is talk on Wallstreet of simliar tracking stocks to large mutual funds (for example Fidelity Magellan), where you can trade the "fund" like a stock and have the ability to trade within the day rather than the NAV price.
The shift of our markets is toward trading, beacuse of the increased access to the market/market info (ie: Level II and Aftermarket trading), and lower commissions.
I do not view trading as a negative. Conversely, I see trading as an "opportunity" for the investor. In the past, it was tot really reasonable for investors to trade with $200-$300 commissions(assuming 200-300 share positions). But now, with commissions lowered, the benefit for trading is there.
But I find trading can cause the investor to get "tunnel vision". I actually find that applicable for myself when I look at intraday charts (let's say 5 min chart).. But once you get to the 15 min chart and daily/weekly charts, can get the "bigger picture".
Finally, one should always have a Long term/midterm portfolio where you can put money in and sleep well at night. That is because there is no possible way (due to time constraints), to trade every good stock in the market, or to catch evey move in a stock.
So the long term portfolio is my "put money and don't worry about it" philosophy. And you can use the mutual funds to help you with that aspect as well. In fact, I think I have maybe 20 mutual holding (mostly in high tech) and I only review them on a monthly basis.
Just some of my ramblings and thoughts. Feel free to discuss.. |
