In my experience, markets are usually bullish on Fridays. I guess most people are optimistic, or just glad that the weekend is coming!
Whatever the reason, I usually like to trade on Fridays, selling a Put Credit Spread (PCS), which profits if/when price is rising and stays above the strike price that is sold.
This is how the marketwatch indicator looked when I opened my platform shortly after 8am..
Oh. It looked awefully bearish (red) to me as all the big companies seemed to be trading that way..
But look at this, the charts show a very different story..
The SPX market WAS trading down yesterday, but starting today, it seems it wants to turn up.
I am not trying to guess the way the market will move.. I want to FOLLOW the market.. just jump on the moving train and ride it to a small profit. Unless I see something in the next hour, I am playing it safe and not trading today.
With that said, there is a great option to choose at this time. I can practice my trading without risking any real funds. Many brokers have a demo (we traders call it 'paper') account that you can practice on and get used to the platform. My broker is Think or Swim (actually TD Ameritrate bought them but the name is still TOS)
It functions and looks the same (mostly) from the real money account..
Its clear it's a papermoney account because the yellow (brown?) coloring and the words 'simulated' of course,
Here's the real one
Let's see what might've happened if I went ahead and sold a PCS now (on paper), based on what I think will happen..
Yup, it sure did move up. I could've won, but, price could also easily have turned down, or maybe a fast, but large move down, which would hit my stop, then continue moving up. It happens often, especially during power hour, the last hour of the market each day.
