Haven't read every post here but the sense I get is that there is agreement that scaling out is probably a mistake for an amateur. This is interesting since it is the opposite of what many beginning trading instructors teach.
There is another activity which I think is highly questionable but...
Buying the stock and buying a put is equivalent to buying a call.
Selling a put as previously suggested is reasonable but not the same as buying a call. Since the hedge ratio of a put and call total 1, if you feel the call has too much premium, then most likely you would feel the put also...
Is there an objective list of how well Cramer actually does on his recommendations? His TV show doesn't seem to go into money management much (and for a non watcher, I've never seen him make a really good call) but maybe his premium services.
There was a newspaper article a month or so ago, that mentioned the intrinsic value of the company was finally being recognized by the market. Been headed south ever since of course.
I think all shortable stock has the uptick rule. Am I correct?
That means I can only short stock at best ask. I can't take the best bid. Is that what the uptick rule means?
NASD stocks are (or used) to be slightly different than listed, in that they didn't have to actually uptick but the bid...
The Dow went up 3000 from its low in October 2002. Made a bottom a little below 10000 in October 2004. Best guess for the current run is about 13000 (10000 + 3000).
When you short your broker has to borrow the stock from someone. There may be a problem for him to do that.
Some stocks can only be shorted on an up tick. ETFs don't have that rule.
If you are short, you are responsible for paying dividends and other corporate actions that affect the...
If you are long and get a sell signal go flat, when the smaller target or stop is hit for the short, go long at the original parameters.
Take the money you save in commissions and give it to charity
I like trading the dow but its a matter of taste.
A few remarks:
Your stops may be too high or profit targets too modest. A lot of guys suggest 2-1 or 3-1 potential profit vs stop.
Premarket trades are dangerous, it may be best to wait until shortly after the open, to see how the...