Wow, I just moved and wasn’t online for a few days or really watching the market. Five up days in a row? Really?? I should’ve closed my hedge position a few days ago. lol.
7/1:
SPY: $1,674
Hedge -$422
lol, wish I had closed the hedge when it was like +$5,000.
Still not closing anything yet, but even if price keeps going up I will be profitable; the hedge will lose less than the SPY position gains.
Wish I had sold those options a while back. Haha.
Next SPY long entry point will be buy 1,400 shares at $124.10.
Nice up day.
Maybe a bounce off this trend line?
Long 1,000 @ $132.
I know that’s a little below the original MAGIC FIB LINE but when I checked the charts today price had gapped down and was at 132 so I entered with a limit order.
Avg cost $132.70.
So the target profit is $137 which will bring approximate profit of $7,740.
Other alternatives if I’m feeling not so bullish:
– Sell 18 $133 covered June calls for $1.55 ($2,790 proceeds) + $540 profit if the calls are exercised.
– Sell 18 $135 covered June calls for for $0.72 ($1,296 proceeds) + $4,140 profit if the calls are exercised.
The options forum tells me I don’t want to sell covered calls too far out in the future because it’s not usually worth the extra premium.
Or I could always Sell 18 $137 covered June calls for $0.27 ($486 proceeds) which was my target profit anyway, so like an extra $486 less commissions?
Some of you may be drawing a down trendline here (see chart). No big deal, I’m just going to buy more if price goes down further.
It could also be argued that right now price is hitting a known R point.
But again, who cares, because price is random… at least to me. I sure can’t predict it!
So what’s going on in this chart?
1) we’ve got the fib lines drawn
2) we’ve got a down trendline drawn (diagonal blue line)
3) we’ve got a known resistance point which may be flipping to S (orange line)
I wonder if any of the fib believers are going to look at the orange line and say “DOOD LOOK IT MATCHES ALMOST XACTLY WITH THE 50% FIB LINE!!!! SEE???? FIBS ARE MAGIC!!!!”
What does this mean for me?
It means nothing. The downtrend line means price should go down. The R becoming S means price should go up. But I cannot predict price, so I don’t even try to.
Look at this up day! Up about .65 cents total on the position so far which is like $520.
Target profit is currently around $137 which will put the profit at around $2,720 with the current amount of shares.
I should be using UPRO.
The next MAGIC FIB level is $132.44.
If price goes there before going up to the target profit, then the target price will net roughly $7,200.
Of course, since price is random, I have no idea where it’s going to go.
Lots of S around 133.30 (if you like S and R).
Long 600 shares at $133.32
OMG THAT ORDER WAS SO CLOSE TO THE LOW OF THE DAY!!! FIBS MUST HAVE MAGIC POWERS!!!
Seriously missed my entry by one cent yesterday. The low was $134.23. My entry as stated above is set at $134.22.
That order got filled today.
Long 200 shares SPY @ $134.22.
Entry point is $134.22
Getting close.
Order sitting to buy 200 shares of SPY @ $134.22.
This is real fibonacci trading. Not that vague BS that “gurus” charge you for with projections and lines all over the place and a bunch of runaround nonsense when you ask a question
99.9% of people (small retail clients) lose money in Forex and the ones who say they don’t are lying or trying to sell you something.
Here is a quick EDU on why you shouldn’t trade Forex without doing your research first:
1) it’s an unregulated industry. This means your broker can screw you over and you have no recourse. There are some honest brokers out there, but there are also some dishonest ones.
2) since it’s unregulated, brokers can make their own rules. One example of this is fake liquidity pools. When you trade stocks or futures, you are trading against everyone else. When you trade Forex, your broker can set it up so that you are only trading against other clients of that brokerage. The bid/ask (prices) that you see may not be the “real” prices: they are the prices created by the broker for you. You’ll also notice that while stocks and futures show you the volume for each bar on the charts, Forex never shows any volume. That’s because Forex is not one big game for everyone to play. It’s a bunch of small games played by scam brokers. Of course, they will never admit this, so I encourage you to Google it and learn more.
3) many Forex brokers also take positions against their clients. Since 99% of people lose money, your broker is betting on you also losing money, and they’re taking the opposite side of your trades (so when you lose, they win)
4) on that note, Forex brokers will go “stop hunting.” Say you have an order to sell if a position goes against you by a certain amount. Since Forex brokers can use fake liquidity pools, they can move the bid/ask to hit your order, thus closing your position for a loss even if price never actually went that far. And since they are taking the opposite side of your trade, they just made money while you lost money. Let me give you an example of this using stocks so you can see how ridiculous it sounds. Ok, AAPL is trading today at $520. Say you buy some, but you put in a stop order at $500 in case price drops that far and you want to get out. So you’re sitting there watching AAPL, and suddenly it hits $500 and your order is closed and you lose $20 per share. But the stock price never actually hit $500, your broker just lowered their own price of AAPL for a moment to trigger your loss. Obviously stock brokers can’t do that, but Forex brokers can.
If you want to trade currencies, trade currency futures. Futures is a regulated market and no one can screw you over. The down sides to futures are that there are minimum sizes and they force you into using leverage which, if you are a small trader, might be more than you are comfortable with.
If you want to trade Forex, be sure to do your research and find a reputable broker.
Trading is hard enough without having to deal with shady behavior from your broker, too.