I have had some good success with choosing stocks that will go up and go down weekly.
So far, my weekly returns if I bought/sold stocks on a weekly basis would be:
Week 1: 2.89% (-2.91%)
Week 2: 1.09% (-2.12%)
Week 3: -1.72% (5.12%)
Week 4: 4.76% (1.24%)
Investing in a hypothetical $5,000 split between positions equally and buying/selling each start and end of the week, I'd be at $5,354 or 7% gain over four weeks. Investing this same amount in SPY, and buying/selling weekly, i'd be at $5,056, or 1.1% gain over four weeks. I know this won't be consistent, but I'm ready to start looking at the next step.
Part of my approach involves buys AND sells. If I only did buys, i'd be at $5,256. So, not as strong of a performance, but still better than SPY. Interestingly, only sells would put me at $5,268, so roughly the same as only buys.
My question is, how do I do the sell portions of my picks? I know that some stocks, like TSLA, have TSLQ, the short equivalent, but most stocks don't have this. How can I enter into sell trades with the same risk/reward as buy trades. I know shorting is dangerous, but i'd be opening and closing each week and would clearly have stop loss levels in case of a major correction.
I could do puts/calls, which have been successful with this setup because of the runners on one side or the other. If I guessed which side was gonna work every time, I'd be doing really well!
Leave a Reply