For income, the bottom of this post pretty much nails it:
Message 24043384
When markets reach extremes I try to take some longer term positions (not days but not years by any means) to try and catch larger profits. We may be approaching that kind of situation. Commissions these days make it possible to trade large blocks for a very good living no matter what the market does. There are lots of good scalping strategies if you watch in real time all day long, for instance shorting the first half hour open if it is strong often works (like today)... Again, I'm talking minutes here, I've often moved 30k shares of a highly liquid stock in one round trip in 2-3 minutes.... I know a guy that uses more automated trading than I do that has moved 1.4M shares in a busy day. Creates one thousand tickets some days....
John
PS - As an example, shorting the morning pop in CSCO today with 20k shares at 25.15 on the way down at 10am would have netted you a .20 profit at 10:09am, a $4,000 profit. Do that MOST of the time, and you can figure it out over a year. It's not easy, requires close monitoring, and good knowledge of trading patterns.
If you had held the trade till 10:20am your profit would be .45, now you are talking $9,000 for the day. Commissions on a trade like this are about a hundred bucks round trip, less if you have volume discounts... |
