As a novice in investing,and a virgin in trading,
Diane, even the pros lose their butt trying to do what you are doing.
You may guess one or two trades right, but if you keep trying to go in and out like this, trying to outguess "Mr. Market", be prepared to have much less money to work with very soon!
I owned both JDSU and SDLI last week when this started, and I sold my JDSU, sweetened the pot, and tripled my SDLI position. since then, I am up about 15% on SDLI, VS a 10% increase if I had stayed in JDSU.
But, What I am doing is risky as hell, and I will probably split my position back between the two this week. JDSU is a long term hold for me, and, because I am totally taxed sheltered in a 401, I could play this game with no tax penalty.
I figured that the arbitrage guys, after the initial days run on SDLI and drop on JDSU, would move SDLI up more last week against JDSU, and I was right.
However,I normally would not play this kind of game, and I do not recommend it, especially for a "newby". I have seen too many new people on these boards, doing what you are doing, lose everything over a period of 6 months.
You are going to make a lot of money, long term, if you pick strong tech stocks and hold them. You are probably going to lose money if you try to day trade them. |
