Ok, I'm pretty new to investing and I thought I would run this by a few of you guys to see what you think.
I have some money to invest, so I'm going to open an account at Zecco.com and try this strategy.
I want to trade the SPY (S&p 500 ETF). I don't have the time to day trade, but I do have time to check it maybe a few times a day. So I want to use a trailing stop order. I was thinking about making the trailing stop order for half a percent. So if it drops more than half a percent, it will take me out and I can check out what is going on with the markets and buy back in the same way when I'm ready.
I guess this is like a long term strategy, but I will manage and watch it at least 2 times a day. It should allow me to ride the ups and stay out of the downs.
I have two questions though:
Do you think half a percent is a good trailing stop amount? Do you think that will be hit way to often or is that pretty good? What about 3/4%?
Today was a really good day on the market so I looked at the percentage gains. The S&P 500 Index was up 2.42%, but the SPY ETF was only up 1.68%. Why is that so far off the S&P 500 index? Is there anything that tracks it closer?
Edit: Also, I know the markets are going a little crazy right now with the credit problems and all, so I'm going to wait until things calm down and the volatility isn't as bad to try this strategy.
I have some money to invest, so I'm going to open an account at Zecco.com and try this strategy.
I want to trade the SPY (S&p 500 ETF). I don't have the time to day trade, but I do have time to check it maybe a few times a day. So I want to use a trailing stop order. I was thinking about making the trailing stop order for half a percent. So if it drops more than half a percent, it will take me out and I can check out what is going on with the markets and buy back in the same way when I'm ready.
I guess this is like a long term strategy, but I will manage and watch it at least 2 times a day. It should allow me to ride the ups and stay out of the downs.
I have two questions though:
Do you think half a percent is a good trailing stop amount? Do you think that will be hit way to often or is that pretty good? What about 3/4%?
Today was a really good day on the market so I looked at the percentage gains. The S&P 500 Index was up 2.42%, but the SPY ETF was only up 1.68%. Why is that so far off the S&P 500 index? Is there anything that tracks it closer?
Edit: Also, I know the markets are going a little crazy right now with the credit problems and all, so I'm going to wait until things calm down and the volatility isn't as bad to try this strategy.
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why is there no delete on this board
