The market turned really sour on Friday. The DOW was down over 200 points. Which tells me that there is a huge sell-off going on as a result of earning reports, the uncertainty in the market, the volatility we have been experiencing and a number of other issues as the market tries to find its footing again. But in a time like this is when a smart investor can really capitalize and make a lot of money in a short time. On the flip side, you could lose a lot of money if you don’t do your research and have used up all your luck.
I hope I haven’t used up all of mine because I have done my research. I am what you call an “aggressive investor.” It’s all or nothing for me. I either make a lot of money or cut my loses when I think I am not going to make much from a short position. Day trading is risky but who said risk is a bad thing? Nothing is really risky when you are equipped with the know-how.I do my research on a number of companies or stick with the companies I already know or follow when taking a risk by day trading.
I have a balance of $2136 for trading and I am wondering if I should invest it now or hold on to the cash or get into a short position in hopes of the market rebounding. I think I will day trade with it to see how much I can make in a short time. That’s not a lot of money but I want to see how much profit I can make with it just by day trading this entire week and if things go well, maybe next week as well and the next and the next…well, I did say I am an aggressive investor didn’t I? I usually do this when I have excess funds in my brokerage account. I use the money to try and increase it as quickly as I can within a few weeks. I will equal this amount with funds from my savings if trading for a few days proves successful.
But even when trading, I still hold my long terms positions (stocks that I am holding for the life of my investments or until I have made enough from them and the price starts to depreciate). I don’t mess with the long term positions. However, the profits that I make from day trading get reinvested in the stocks I own and plan on holding for a long time. It’s a good way to increase your earnings. The only thing that bites is the hour I am doing it. I have to stay up really late since I am here in Korea rather than in U.S doing it. I would trade in the Korean market but I don’t understand it well; although I am able to discern the written language.
I have narrowed down and analysed two companies to trade for a short gain. Alcoa Inc. (NYSE: AA) which is already part of my portfolio. I hold 30 shares of it and I thinking about buying 150 more. But I will decide after I see how it opens today. The other is Toreador Resources (NYSE: TRGL). Although this company is risky, they have made some smart decisions including moving their headquarters to Paris where they do a lot of their business.
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