0 Q&A from 10/30 Webinar
Q: Bearing in mind that ‘amateurs open the market and pros close it’, if you see a pivot point after the close, should you wait until the last hour of the following day before putting the trade on? – Andrew
A: We often trade in the last 15 min of the day. So if we see the pivot point holding, we will trade *that* day rather than waiting for the next trading session. This assumes that the signal is one that doesn’t require confirmation. An example would be a bullish engulfing pattern. A doji is an example of a candle that does require confirmation from the next trading session.
Q: In today’s climate and with so many stocks well below there 50 and 200 day moving averages, what can you take from the charts to give you confidence in future picks? – Lee
A: Well, for starters, you could include bear trading strategies such as put buying and short selling to profit from market downturns. Then you would actually be searching for stocks that are below the 50 SMA and 200 SMA. Beyond that, you can find short term buying opportunities and use the moving averages as profit targets as opposed to support levels. Further, the candle patterns and role reversals that we identify are just as valid in downtrending stocks as they are in uptrending stocks.
Q: Can you short sell and trade options in an IRA account? – Ed
A: Short sell – no. But you have many options strategies available to you, including some that have similar profit scenarios as short selling. All you need to do is submit an IRA Options Upgrade request to your E*Trade rep and you can begin trading options in your retirement account.
Q: So many 401K and retirement IRA’s do not permit individuals to invest directly into stocks other than the stock of the company which offers the plan. Most of these investments are limited to funds within certain selected mutual fund families. How do you advise clients on how to appropriately manage risk when limited to these investments? – Brenda
A: First, consider your overall portfolio. In addition to your company plan, be sure to balance across your other savings. Having done that, you need to do the best you can with the limited investments in your company plan. Consider having a core of index funds and money market funds. Index funds will follow the market and give you diversification with low expense. In these volatile times, money market funds are good to temper the falling and volatile markets. Don’t get carried away with many funds and switching too often – that usually results overall under-performance. Finally, be sure your other investments balance the limitations of your company plan. If you have a high balance in retirement index funds, don’t add more in your other accounts.
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