newbie needs help with plan

[newbie32]

I've traded once before in my life.
I want to day trade UCO. It has been fairly volatile and I just want to take about 2-3% at a time always on the buy side. If it continue to go down I'll just ride it out because I think oil is bound to go up. Does this sound like a good plan?

 

[newbie32]

UCO is an etf tracking the price of crude oil 2X.
I'm thinking ERX(3X energy) might be better since its more volatile.

 

[demeanor]

I think when the stock is highly volatile, then buy it and sell it immediately. I think in times of high volatility you should be an arbitrageur.

 

[Hoggums]

I've traded once before in my life.
I want to day trade UCO. It has been fairly volatile and I just want to take about 2-3% at a time always on the buy side. If it continue to go down I'll just ride it out because I think oil is bound to go up. Does this sound like a good plan?

No it doesn't. Look up risk/reward ratio.

 

[Skill Leverage]

Yeah, this is one of those plans in the category of 'It works, until it doesn't' - the time that it doesn't is the time that you lose everything you had and a whole lot more. Yes, the price of oil is quite likely to increase before it runs out in a few decades or so, but that doesn't mean we won't see $8 a barrel in the next year.

 

[Skill Leverage]

Why don't you just spend all your spare cash on filling jerry cans with petrol and hoarding them in your garage over the next few years, it's essentially the same idea.

 

[Skill Leverage]

UCO is an etf tracking the price of crude oil 2X.
I'm thinking ERX(3X energy) might be better since its more volatile.

What's your reasoning behind wanting a more volatile product, if all you're doing is buying and holding?

 

[VingTsunKuen]

I will go to fishing at local river whit mine boat.I will throw hand grenade just below mine boat in order to catch fish.Does it sound like a good plan to catch a fish?

You must have proper answers on proper questions.Out of those answers you can make your rules,when it comes to core of your trading plan which is strategy.
For example,when i will enter,and more important why i will enter exactly at this point?
Where will be mine stop and why i am gonna put it there,and so on..
Regards,
VTK

 

[Lord Flasheart]

That plan is one of the worst available to mankind, however it was one of my first and one regularly followed by 90% of trader. There are certain laws to trading that dont ever follow logic.1) What goes up does not have to come down 2) throw away the pennies and wait for the £s 3) never get out while you ahead,only when you are losing.

 

[everyonerich]

when you trade and lose.. dont try to retaliate. after you overcome this, you had reach 50% of the journey to a perfect plan.

 

[newbie32]

I think when the stock is highly volatile, then buy it and sell it immediately. I think in times of high volatility you should be an arbitrageur.

I think this is good advice. I looked up arbitrageur on dictionary.com. My question now is where can I find good real time charts to track the prices??? I've just been using zecco's 5min chart. Is there software I can download or maybe purchase?