Recently, a fellow investor and trader asked me the following question:
“I don’t want to trade any longer. It’s not that I don’t have time as I am retired and have all the time in the world. But just lately, I have been giving up everything that I am making, and sometimes more. I understand why this is happening and its all due to the volatility. I have a plan and that plan is based on Tasty trade style of trading but doesn’t seem to work right now and so I am fed up. I want to make 1.5% per month, or about 18% per annum. Is that too much to ask for? I think I can get by with 1% per month (12% per annum) as all it will mean is that I inject more capital in my account. With this modified requirement, I think I can get away by looking at the screen less frequently than I am doing now, what do you think? I am thinking of spending few hours a week, if that’s going to enough but it would have to be a strategy that does not require me to “trade”.”
Here is what I think can be a great strategy for this investor and everyone who wants to boost their income but not to trade:
|
We all want to hear your opinion on the article above: No Comments |
I am trying to get back on track posting regularly our trading and investing results.
Markets were again struck by fear selling and media were coming up with tons of reasons why. At first, it was tech stocks such as AAPL driving the markets down, then semiconductors, later oil… all in one day. You could play the miney, miny… game to pick the reason. Granted, they do it all to entertain. However, the selling appeared to be purely technical, as I will present in this article, and quite predictable. Not that I predict the markets, I still have expectations but I do not trade to fulfill those predictions but use them to help me navigate the trade.
Investors and traders were afraid of what the stock market would do over the weekend due to an air strike in Syria. Myself included. I too was worried about the reaction on Monday. But there was no impact. The air strike ended on Saturday evening and as Trump said: “Mission accomplished” (we have heard this about Iraq once); the markets actually rallied. The S&P 500 futures opened more than 15 points up on Sunday and the market ended Monday trading 21 points up. Is there anything else coming on us we should be worried? I hope not. And if we are good now, no more Trump’s political escapades, no more wars, no other issues, then it will only be earnings season determining the next move. The banking earnings started lukewarm on Friday last week but today a few companies, reported good earnings. I hope this will continue and prop the market.
The second week of April was better and provided a good recovery from the lows. We brought in a nice income offsetting previous week loss. Our net liquidation value is still down due to open trades consuming it, although it recovered somewhat this week.
The stock market went down today on a fear of the US going into an air strike against Syria. Trump tweeted about nice, new, and smart missiles coming to Syria and Russians if they keep supporting Syria. Again, Trump opened his big mouth and the market reacted on his blabbing. Not facts, just his tweets. However, it was surprising to see that investors and traders didn’t over react on those “news” and the market remained relatively calm. The loss was only about 5 points. Then FOMC meeting notes were released and the market slid almost 15 points. Overall, it was still a quiet day.
We had an interesting trading day today. The markets eased up a bit after last week correction and renewed selling. The market rallied on no news but then, FBI raided Trump’s lawyer’s office and all ended again. All today’s gains were removed.
Recent Comments