Friday, February 14, 2014

ProShares Trust II (BOIL) news: Natural Gas Prices At A BOIL, Market-Makers' Rest Of Year Outlook - Seeking Alpha

ProShares Trust II (BOIL) news: Natural Gas Prices At A BOIL, Market-Makers' Rest Of Year Outlook - Seeking Alpha



This is an excellent article about BOIL, a natural gas leveraged stock. Peter Way also discusses how the market makers operate.  He talked about some people quickly taking profits at the top of the trading range along with not holding any position longer than three months. If they can make 10-20% on each trade, the market makers can make 80% per year repeatedly.  These are also highly probable trades rather than waiting for a buy-and-hold pipe dream to take place.

Of course, the ultimate plan would be to allocate a certain amount of money to trading, another portion to dividend stocks, and a third portion for long term holdings.  As long as you keep your trading money and gains separate from the rest of your portfolio, you could get rich on trading alone while being safe mostly with the rest of your stocks.

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