Paper Trading the Silver Gold Ratio

[beauanderos]

I have a small holding within a self-directed 401K. As some of you might be aware, I like to "trade" very aggressively
inside it. I've had a number of shares of USLV which I've attemted to buy and sell, with some limited success, in an attempt
to capitalize on the volatility... buy on dips, sell on rises, buy back more shares the next dip, etc.

I just came up with an idea this week to try another tack, and so far it appears to be working. I've been buying JNUG (junior
gold miners triple-leveraged ETF) and NUGT (gold miners triple-leveraged ETF). But I haven't really been using new funds.
Instead, what I'm doing is this. On Yahoo Finance I track the three ETF's which shows up to the moment quotes on how they're doing.
For the past couple of days, there have been times during the day when the gold miners were down considerably more than silver...
so I sold some USLV to fund the purchase of the gold miners. I'm talking of USLV being down maybe 2%, while the others were down 10 to
15%. Once they rise again and I sell some shares, I can then either place buy orders for either of them expecting further volatility,
or I can move back into USLV if the pricing is more opportune.

I'm thinking it's the same as trading the GSR in physical, with the goal of stacking more ounces... but using leveraged ETF's instead,
to try and build more shares into a small portfolio. You could do the same thing with just SLV and GLD, but I like the accentuated moves.
Rather than bitch and whine about the manipulations, at least now I have a plan to, hopefully, capitalize on their shenanigans. Trades cost $8.

Thoughts?

[IdahoCopper]

If you are selling then buying, the completed "trade" costs $16, not $8. Correct?

[beauanderos]

If you are selling then buying, the completed "trade" costs $16, not $8. Correct?

Each trade refers to one transaction. A sell order or a buy order each cost $8

[silverstacker]

I have a small holding within a self-directed 401K. As some of you might be aware, I like to "trade" very aggressively
inside it. I've had a number of shares of USLV which I've attemted to buy and sell, with some limited success, in an attempt
to capitalize on the volatility... buy on dips, sell on rises, buy back more shares the next dip, etc.

I just came up with an idea this week to try another tack, and so far it appears to be working. I've been buying JNUG (junior
gold miners triple-leveraged ETF) and NUGT (gold miners triple-leveraged ETF). But I haven't really been using new funds.
Instead, what I'm doing is this. On Yahoo Finance I track the three ETF's which shows up to the moment quotes on how they're doing.
For the past couple of days, there have been times during the day when the gold miners were down considerably more than silver...
so I sold some USLV to fund the purchase of the gold miners. I'm talking of USLV being down maybe 2%, while the others were down 10 to
15%. Once they rise again and I sell some shares, I can then either place buy orders for either of them expecting further volatility,
or I can move back into USLV if the pricing is more opportune.

I'm thinking it's the same as trading the GSR in physical, with the goal of stacking more ounces... but using leveraged ETF's instead,
to try and build more shares into a small portfolio. You could do the same thing with just SLV and GLD, but I like the accentuated moves.
Rather than bitch and whine about the manipulations, at least now I have a plan to, hopefully, capitalize on their shenanigans. Trades cost $8.

Thoughts?

I have been buying and selling AGI for the last 4 months reasonably consistent results. Lately it rises upward from the start of the day and then sharply turns downward as the day progresses. This has happened for the last two weeks and I have done well with that. Price is undervalued at the moment and will turn back to $9.75 soon. Great time to buy. Zero debt. Cash reserves and their managed well with new mines in South America .

[beauanderos]

ok... so nothing great so far... but better than nothing. Yesterday I bought 58 shares of JNUG @ 16.94, sold them today @ $18.61. Bought back into USLV and five more shares of those than I started with, trading costs included.

edit

Pooey... was busy at work and did the numbers wrong in my head. Only wound up with two extra shares USLV... still, not bad for overnight and just pushing a couple of buttons

[cooyon]

So Ray, is this more fun than playing around with coins?

[beauanderos]

So Ray, is this more fun than playing around with coins?

This is a different kind of fun.

I do this inside my 401K, since my company still matches 50% on the first six percent of my contributions. I try my best
to make that small amount of funds work very hard for me. I'm willing to be extremely aggressive with it, since Obama will
probably try to get his mitts on it anyway. If I lose it I can just thumb my nose at him

Coins are fun (selling into dips is not ) Figuring out how to piggy back on the bastards that manipulate our precious
metals makes it tolerable (barely) for me. Stack on, Brothers (physical before paper)

Also, what is neat is... silver and gold had big down days, and yet I figured out a way to make money on it.

[Recyclersteve]

There was a book written a long time ago about trading gold and silver against each other called Making Inflation Pay by Jonathan Hefferlin. He owned Jonathan's Coins near the LAX airport and adopted a lot of (I think it was about 20) homeless children. There are several war stories in the book about him and his adventures. For instance, once he bought a HUGE quantity of women's hosiery from a bankrupt business. He had no idea what he would do with it, but ended up selling it for a very nice profit. Very interesting book.