FAS or FAZ which one?

[bat1]

There's big money to be made if you
can pick the right one.

FAS if you think the Financial mess is over!

FAZ if you think there's more gloom and
doom ahead!

where talking a 50 to 75% pop
in just a week time...



Ed

 

[NoDoji]

Well, let's see, we have commercial real estate and consumer debt turning more toxic each day, and O Great Savior Government already maxed out over toxic residential real estate. Hmmm...

 

[reiehaxm]

I'm still not showing IB having FAS or FAZ on their short list. Any brokers have shorts available?

 

[Haroki]

Why would you need to short them?

Just switch positions.

 

[reiehaxm]

Quote from Haroki:

Why would you need to short them?

Just switch positions.

I dont want to watch 2 sets of charts (and use 2 DOM's). These are daytrading instruments with the volume for scalping.

 

[Haroki]

Quote from reiehaxm:

I dont want to watch 2 sets of charts (and use 2 DOM's). These are daytrading instruments with the volume for scalping.

Well, ok then.

BTW, I daytrade them too and don't see the issue.

If I see a downtrend developing, switch the chart to FAZ... then wait for a good entry point.

But I understand your position totally, so if you're looking for shares in IB, try UYG, although it's a 2x - which of course means less volatility for the tradeoff of more stability. More consistent, but smaller gains. I used to use UYG almost exclusively for the very reason you cite.

Just that I found that it wasn't a real problem for me once I resorted to "switching". LOL.

Good luck

 

[el pollo]

Quote from reiehaxm:

I dont want to watch 2 sets of charts (and use 2 DOM's). These are daytrading instruments with the volume for scalping.

Ya' gotta love lazy traders!

 

[Haroki]

Quote from el pollo:

Ya' gotta love lazy traders!

LOL.

Yeah, that's what I was thinking too, but didn't want to say it.

But I can also understand the flipside too. Decrease the data you've got to process so you can make better decisions.

Whatever works....

 

[reiehaxm]

Quote from el pollo:

Ya' gotta love lazy traders!

hehe....I've never been called a lazy trader. A few 18+ hour days this month (my wife thinks I'm crazy).

While watching price action, pressing the reverse button is many times my most profitable trades. Filling my screen with more stuff costs money. Obviously if I wasn't scalping and had 30 seconds to think about a trade, switching between FAS & FAZ would work just fine.

 

[WinstonTJ]

Quote from reiehaxm:

hehe....I've never been called a lazy trader. A few 18+ hour days this month (my wife thinks I'm crazy).

While watching price action, pressing the reverse button is many times my most profitable trades. Filling my screen with more stuff costs money. Obviously if I wasn't scalping and had 30 seconds to think about a trade, switching between FAS & FAZ would work just fine.

reiehaxm,
try switching between pairs, you'll notice that they both behave a little differently and track differently. You might be able to notice one start to trend a few ticks before the second, giving you a better entry point into the inverse pair.

Options are just starting to come out on these things and shorting them is going to be a little tough for a while. When I worked at Etrade we would only have stocks on the short list that customers owned - if you guys are in & out of these positions in seconds then its hard for any firm to keep them on the short list. Most firms don't want to go out and borrow them either - they are hard to find and because of the reason above.

I'm sure there are other reasons too...