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Tuesday, March 6, 2012

On how to make a few bucks by day trading Horizons BetaPro COMEX Silver Bear Plus ETF (HZD)

I had experimented day trading back in the summer of 2011 and I had lost about 1k with that experience because I freak out. For the first of my life, the market controlled me. I had lost control. I am certainly not proud about that but I wrote about this adventure anyway. I had catched up with a couple of other great move nicely and of course, I wrote about those too. Like I am not all that bad at all. If I would be very bad at investing, I would have stopped way back. But no matter what, it always went well. Fact that the value of my portfolio is down right now doesn’t affect me that much.

The timing is like perfect to perform day trading on Horizons BetaPro COMEX Silver Bear Plus ETF (HZD)!

YEAH!

The stock market is down right now and it come remain to the same level if not go even DEEPER. It’s in time like those that it’s time to perform day trading on silver. Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) + a down market is the PERFECT combination.

How to perform day trading on Horizons BetaPro COMEX Silver Bear Plus ETF (HZD)?

First, before the TSX opens, go check on Bloomberg.com what happen during the night for the Asian markets. It will give you a pulse of what’s going on. If those Asian indexes are down, chances are that our fantastic TSX will be down too. If it’s the case (Asian indexes are down), make sure you are in front of your computer for the market opening.

Secondly, watch the opening. Watch the TSX: is it up or down? If it’s down, go straight and check on HZD immediately. The market is very down and HZD is already exploding? Well, if it’s the case PLACE a small BUY order (just a few shares for the heck of it and get what I like to name as being a market buzz), but be careful, double check the buy order before submitting for real ok?

Following the BUY order, check out on HZD, see how the title goes, try to figure out the profit you want to make. Quickly set-up an automatic SELL order. You may have to adjust the amount of profit depending on how HZD goes during the day. You want to cancel the automatic sell order and enter a new amount? You can, but be careful. CANCEL, and after what, go in your account activity to check if the order go through, just to make sure. No order went through? Perfect! Just go back in, set-up a new automatic sell order for the amount wanted.

During the whole process, you need to be quick, efficient and extremely careful, specifically while entering the order. Also, I wouldn’t recommend to trade more than 1k at a time. Day trading isn’t made to make a living out of it... it’s just to get a MARKET BUZZ.

14 comments:

Anonymous said...

Yep, a MARKET BUZZ. Just like the buzz a crack addict gets from hitting the pipe, and just as healthy for your finances.

Liquid Independence said...

Cool. Now I know how to day trade like the pros. I've never done this before but it sounds really tempting (^▽^)

Anonymous said...

forget day trading these. just wait for a big correction and buy solid blue chip dividend paying stocks and hold forever. your goal is to retire from the income from your investment and not solely based on total capital. if you can generate a portfolio that pays you 30-40K (this is about 75K GROSS income salary) you are all set and this income should grow year after year... slow and steady wins the race.

a previous poster mentioned the dividend growth strategy, you should look into that.

For example, Scotia Bank (BNS) announced another dividend increase. Per quarter, from 49 cents 3 years ago, then 52 cents dividend last year and then 55 cents dividend this year that's basically 6.1% and 5.8% increases over the past 3 years = 11.9% increase! when was the last time your income increase by that much?

Sunny said...

I guess there might be some people like that who are totally addicted to day trading. A new Housewives from Vancouver has a day trader as husband. My article got delete from HubPages, I guess I could post it on my blog.

This is certainly not a "pro" strategy, but a way to have fun with the market...

I already have that big portfolio. I own BNS. I know that dividend income is. I know it since 2008. I just want to add something a bit more spicy. Buying and holding, that's what I am doing at this time, and its true it has pay me well. I recover from all stock market crashes that way. I also built a major part of my portfolio in 2008 when the market was down.

I don't have extended funds to invest at this time, just a bit of money to play. There's much more to the stock market than just the buy-and-hold program.

Anonymous said...

Sunny: Your blog is "Dividend Girl", not "DayTrade Diva". I realize its caveat emptor, but its a disservice to your readers to hold out a strategy thats risk & entirely timing driven & I'm not convinced of its efficacy. Yep, you can even sit at home all day & play the VIX (VXX) against the S&P index, but at least at the casino you get free drinks & coupons for dinner. Most of these schemes don't take into account the grinding in-out costs that makes TD Bank (Waterhouse) profitable. Cheers!! Anony-omoplata

Sunny said...

I don't exactly agree with that. My blog is more a testimony on what I do regarding my personal finance. Day trading silver can be lucrative if done correctly.

I am giving an overview of what can be done, I am not saying its the best thing ever, but I like to share my little tips and tricks.

Try to find someone as generous as I am online. It's hard to find.

Anonymous said...

There are bloggers out there that trade from time to time. It is quite evident the Sunny is not a trader and a dividend investor. Not very often do they trade. All of these bloggers like long term dividend investing and do not trade at all.

If you going to trade you should have a separate account and practice strict money management rules. Only risk 2% of account and go from a 1:2 risk to reward ratio. So a $10000 account you would limit your loss to $200. If you lose you still have 9800. Type money management and Larry Williams into google or youtube.

Sunny said...

For the small amounts that I trade, it doesn't really worth it to have a separate account just for that.

Trading is fun, but so risky! The market is not stable enough to let beginner take advantage of it for trading.

Anonymous said...

Readers that take advice here are getting what they paid for....nothing

Sunny said...

Ahhhahhaaaaaaaaaaaa

lol...

At least, you can keep your money in your pockets :)

And read my HubPages.

If that's not enough to make you happy, I don't know what will. ok.

TheStockJock said...

Oh boy this is not how to profit from daytrading. I'm not saying you can't make a profit this way but you're running against the odds. There are a number of much better ways to put odds in your favor and skew the risk:reward ratio. Also limiting yourself to $1000 is a terrible terrible idea. Trade fees will be the same regardless of $1000 or $100000 being traded. So on $1000 you have to pay something like the first $20 ($10 buy and $10 sell) to the broker, that means you have to make at least 2% just to break even! On $100000 you only need a 0.02% gain to move to even. Yes absolutely the potential for larger dollar losses is present but so is the potential for larger dollar gains and you've increased your odds of success by 1.98% simply by trading the proper size. If you didn't have an edge to enter where risk:reward was in your favor then you shouldn't have taken the trade, if it is then you may as well add to that edge by using proper sizing for day trading. For a daytrade really anything less than $5k is just increasing the risk that you'll funnel money to the broker or hold for a move that may not exist with hopes to hit even. Even $5k leaves a 0.4% hurdle that you have to cross before making anything at all.

If you're actually interested in trying to do some daytrading rather than simply dividend investing there are MANY things that you should learn. In my experience the most valuable tools are daily VWAP, offset SMAs, volume bars, L2 quotes and trailing stops (either manually increased or automatically if you want to let the position babysit itself). Having a sell target can be ok in some instances to remove risk but usually you would have a large position and sell a portion at a target to reduce overall risk and ensure profitability of a trade and then leave the remainder on a trailing stop to take advantage of additional run.

There is lots of good day trade info out there, learn it, paper trade until you are able to sustain a win rate in excess of 51% fees included (not just profitable trades but profitable setups) For example you could lose money on 70/100 trades but as long as the other 30 made more than enough profits to make up for the 70 losers then you still have a better than 50% win rate.

Once you have learnt all the information you can and have tested your strategies and determined whether or not they are successful then you will find something that you are comforatble with. Not everyone will trade the same but everyone will find something that works for them. I used to do nothing but day trading but found I could make just as much by putting in the efforts to find undervalued companies and buy them as investments and then just use the things I learnt from Daytrading to time my entry on a longer term basis. If you can figure out a good entry point on a daily chart you can do the same on a 1 min chart, it's all just fractals.

This is a way longer post than I ever figured it would be but just wanted to let you know what you are proposing for a daytrade menthod is not viable and you will end up losing money this way. Hopefully you'll take this to heart and spare yourself before incurring any signigicant losses.

Cheers,

TheStockJock

Sunny said...

Long comment, but interesting. And yes, I read it all. Susan has to come with something for day trading to help me out :)

As for myself, my way is more experimental. I made a bit of money by doing day trade the way I describe it. I will never trade 5k at a time for trading. Like NEVER.

As for rest, I agree, I certainly have a big deal to learn before blowing my readers minds with my day trading.

Anonymous said...

Why I mentioned a separate account? If a person actually "trades" like a trader they go long and short stocks, trade futures, options, forex, and commmodity futures. If you trade like this you should have a separate account. This type of trading is very risky, know what you are doing, and glue yourself to the monitors usually. A trader needs to keep track of the trades to find out exactly how the are doing.

Sunny, I don't have an separate account for trading either. I trade once and a while and it is 99% going long on stocks.

Sunny said...

Interesting. Thank you for sharing.

 

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