Papya; RE:" we be jammin' "
>How do you play the spy ?
SPY is SPDR - Standard and Poor's Depository Receipts
...it is the S&P-500 index (Futures, actually) in stock form. You can buy it like a stock, and it pays dividends. It beats 80% of all mutual funds, has no loads or charges, and is a great way to learn about trading in general, or trading indices in particular. You can sell SPY short without an uptick, too ;-)
There is also DIA - Diamonds, the DJIA-30, but it's not as popular as SPY.
There are 17 other USDollar-denominated thingys, called WEBS - WorldWide Equity Benchmark Shares, and these are things that are some country's stock market that you can buy and sell just like a stock; they also pay $ dividends. You can read all about it on the amex.com site. EWG is Germany's DAX, for example. Remember - they are traded here in USDollar terms - so they reflect currency values as well as equity values. The EWL - Switzerland WEB just paid me an 8% dividend the other day.
So, you trade SPY just as if you were trading the (whole market) S&P-500 index chart. I like to "scalp" trade it long and then sell out the equivalent kapital in - leaving some odd-lot number of shares in a "forget-about-it" little portfolio in my core holdings. whatever.
you gold bug (^_^)
-Steve |
