Eman93
4,750 posts
msg #83308
- Ignore Eman93 |
11/21/2009 9:25:26 AM
I almost bought some IO at the close....
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Eman93
4,750 posts
msg #83309
- Ignore Eman93 |
11/21/2009 9:30:11 AM
Keep up the good work...... this is really looking good...
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duke56468
683 posts
msg #83314
- Ignore duke56468 |
11/21/2009 11:40:21 AM
Kevin Thanks for all your work here. I'm still trying to learn, but it looks like ERX gapped down on FRI and a 10% stop loss would have turned into an 18% loss wiping out your gains and then some. Unless you had a stop-limit order in that case it would still be open. Am I looking at this right?
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Kevin_in_GA
4,599 posts
msg #83315
- Ignore Kevin_in_GA
modified |
11/21/2009 12:03:49 PM
Look at the filter. It is structured for a 5% profit stop and a 10% stop loss. Both should be put in place at the time of purchase. You would not have taken the full hit on Friday.
Which, by the way, was not a hit - a substantial dividend was paid out and the stock price adjusted to reflect this. You would have recieved a big check if you held through Friday, which would have mostly offset the stock price drop.
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duke56468
683 posts
msg #83316
- Ignore duke56468 |
11/21/2009 1:02:50 PM
A buy at the open Mon. was 46.50, a 10% stop-loss was set at 41.85. It never hit that all week until the gap down and you would have sold at the open Fri morning at 39.36, a little over an 18% loss. I couldn't find anything about the dividend you speek of. The dividend is normaly paid in Dec. How much was that dividend, and what was the ex-dividend date? Still trying to learn.
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Kevin_in_GA
4,599 posts
msg #83317
- Ignore Kevin_in_GA
modified |
11/21/2009 1:11:03 PM
http://www.direxionshares.com/etfs?distributions;funds=erx,typ,mwj,drn,ery,fas,tmf,tyh,edc,mwn,bgu,tza,edz,tna,tmv,drv,faz,dpk,tyd,bgz,dzk,tyo
ERX dividend paid on 11/20 at $4.65 per share. Your stop loss order would have been triggered at the Friday open price, but you also would have gotten the check.
This does raise a good point - do not simply buy a stock without researching it. These leveraged ETFs pay substantial dividends when they are profitable, but you need to know when these dividend distributions are scheduled.
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duke56468
683 posts
msg #83318
- Ignore duke56468 |
11/21/2009 1:13:12 PM
Thanks I see it now , learning all the time.
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Kevin_in_GA
4,599 posts
msg #83319
- Ignore Kevin_in_GA |
11/21/2009 1:55:20 PM
You would have been stopped out, but for only a 5.5% loss when the dividend is included.
In that case, your actual profit for the week is (5 + 5 + 5 - 5.5)/4 = 2.37%
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duke56468
683 posts
msg #83321
- Ignore duke56468 |
11/21/2009 3:37:53 PM
Kevin,
Does direxion warn somewhere when these (out of the normal quarterly) distributions are about to take place?
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Kevin_in_GA
4,599 posts
msg #83322
- Ignore Kevin_in_GA |
11/21/2009 3:47:58 PM
I'm not entirely sure - there usually is an announcement somewhere on their web site ahead of this event. I would also look at the message board on yahoo - there typically is someone posting a warning there about a week ahead of time.
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