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Timing is everything. Or is it luck?

The stock market had been slowly creeping back upwards, and by Wednesday was set to actually finish February with a gain, the first in three months.

I had a hunch, though, and sold off all my shares of DDM (Proshares Ultra Dow 30, an ETF that follows the Dow Jones Industrial Average and doubles any gain or loss) for $77.05, even though it was still $6500 in the hole since November.  I hung on to all my foreign funds as well as the Excelsior Energy & Natural Resources Fund.

Turned out my hunch was right, the market was down 112 points Thursday and a whopping 315 today.  With less than 5 minutes left in the day, I put in a Limit Buy order for DDM, at $72.05.  In the last minute or so of trading, the price dropped below that level, triggering the purchase, before drifting back up to close at $72.10.  I managed to save myself a loss of $5 per share.

I still ended up $1300 in the hole for the day, but selling and repurchasing DDM saved me from losing another $2000.  I'm kind of kicking myself that I didn't buy DXD (Proshares UltraShort Dow 30) on Wednesday; that could have made me another $2000 or so in profit, for a net gain of around $700 today, but that would have been significantly riskier and I'd have been unable to buy anything else with that money until Tuesday.

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whitetail
Mar. 1st, 2008 08:50 am (UTC)
I only check my stock prices once a month now, on the first. I figure the market's going to take most of the year and maybe longer to get back to where it was at the end of 2007, so I just save myself the daily grief and check things monthly. It's all beyond my control, anyway. It'll take as long as it takes. No sense making myself fret any more often than necessary, I reckon...
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