Quote:
Originally Posted by MrMaxwell
I can't get any poorer, so fuck it
I'll be okay no matter what
I always am  |
Your whole issue is commission and sitting watching the monitor. Plus you may not really grasp how a big spread (diff between bid and ask) can damage your model.
That is why pennies suck, $11 commission and large spread because of low volatility. If you are dead set against holding, try options. Unless you invest on expiry they don't lose time value over a day and have the same "what a rush" volatility of pennies but with much higher liquidity.
Pennies really are not for volatility trades. You have to know something about either the industry for the company.
A strategy you might like: Find a high volume stock trading in a stable range. Wait for a large dip (not on a "selloff" day, of course) not based on news. Buy $500 worth of calls at strike at least thirty days out but not more than ninety. Have courage.
That way you can watch your value go up and down but you stand to make some dough and the commission is less of a factor.
Obviously check all this out yourself and make your own decision. Don't buy and hold options unless you know something or can lose all your investment.