Thread: buy low,sell high?

Lots of people work with moving averages, 50 day, 100 day etc. It's up to you how close you want to cut it. Others use,,,,,well all kinda stuff. I'm sure there will be other responses with other methods, just wait and seeeeeee!

Originally Posted by mailmanusa

Lets say I dont want to trade too frequently. Just periodically. Buy when I think the market is close to a low point and sell when I think it is closer to a high point. That part is all understood. Now for the question. If one were using the dow as a compass for when to make a move either way, how large of a point span would you generally put between the buy and sell? IE buy at 11000 and sell at 11500 for example. Any opinions out there? 500 point span?1000 point span? Any other helpfull input would be appreciated.

Thanks
JD

U do any excel??? Are you familiar with any data calculations??? If you aren't I would suggest u use the StockCharts.com data....its good enough for doing your sort of thing.....
http://stockcharts.com/gallery/?$SPX

and try this

http://stockcharts.com/def/servlet/SC.web?c=$SPX,uu[w,a]dalayyay[de][pd21,2!i][vc60][iut!Uo91!Lc15]&pref=G

That should help ya .....

I'm not selling until the Dow is at 17,000 and the SPX is at 1700. And I don't care how long it takes - actually the longer the time element the better.

mailmanusa,
Ole Birchtree believes in going a little more on the LONG side than I do, but to each his own.

I do like to use the charts on yahoo. I look at the graph using the different time span options. I see a low for the last 52 weeks around 10800 and a high of 11700. Somewhere between there, I need to pick my two points of action. Then as more data comes in over the next 3 or 6 months, adjust targets if needed. I am thinking a 500 point span, lets say buy 11200-sell 11700 for a more passive aproach and trade periodically. Any glaring problems with this idea?

nnuut, when you say 50 day, 100 day, do you mean buying or selling on a daily basis based on a 50 or 100 point change in the dow?

Originally Posted by mailmanusa

I do like to use the charts on yahoo. I look at the graph using the different time span options. I see a low for the last 52 weeks around 10800 and a high of 11700. Somewhere between there, I need to pick my two points of action. Then as more data comes in over the next 3 or 6 months, adjust targets if needed. I am thinking a 500 point span, lets say buy 11200-sell 11700 for a more passive aproach and trade periodically. Any glaring problems with this idea?

nnuut, when you say 50 day, 100 day, do you mean buying or selling on a daily basis based on a 50 or 100 point change in the dow?

NO! Look at the 50 day moving average on the chart. Pick a point in a uptrend, or bottom, thats where you usiall would buy. That was your in point, you bought. This is up to you, when do you get out, normally when market go below the moving average you have selected, or something stupid really happens, like a hurricane heading for oil fields, You sell, and buy on the uptrend (or bottom) its up to you. I really don't use this method but use it as an indicator. What ever works.

Hi mailmanusa,

Watch what FundSurfer, Wheels, Festus and Show-me are doing! [RE: The Tracker] Currently they are at or about the 10-11% range. Their systems may differ. What they have in common, is their ability to use the fundamentals and technical analysis. They were right in the direction they took about 85.7% of the time.

Also remember there is a fine line between being early and being wrong. How long will this current expansion last? I'm with Ben on this one.

Originally Posted by Birchtree

Also remember there is a fine line between being early and being wrong. How long will this current expansion last? I'm with Ben on this one.

Thanks guys I needed some help with this one, you know me!

Thanks for all the info. I have been reading up. I have contributed to TSP for 12 years now but only started making IFT's about 18 months ago. I have made 4 or 5 major moves in that 18 months and only one of them went against me. I bailed just before Katrina hit but the market went up instead of down. I had to wait it out a few weeks to get back in. I am getting the idea. The main one is there are no guarantees. I still like the diversification layout of the L funds. I am thinking of choosing an aggressive stance at 100% L2040 and a conservative stance at 100% L2010. I would bounce back and forth between those two. 2040 for the bulls, 2010 for the bears. Thats not a stupid idea is it? Dont be afraid to tell me. As a newbie I am entitled to ask stupid questions and have stupid ideas. LOL

It is a good idea. I use the L2040 as my benchmark. If I cannot beat it, I'm joining it.

Dave