We’ve said it before, but this year, more than any other, you’ve got to be nimble. In fact, Fast Money was probably the first show to tell you about the death of buy and hold. (It was back on November 10, 2008 ).
At the time the Fast Money gang warned that the only way to navigate this market was to think like a trader, not an investor. That is, pick an entry point – and more important, know when to get out.
Jon Najarian always trades that way. “With me buy and hold has always been dead, I’m not a buy and hold trader!”
How does Najarian recommend trading?
By using a strategy he calls range roving; that is buying at the bottom and selling at the top. “I love buying on the lower end and selling on the upper end,” he says.
And you can do just that with the S&P which has been trading between 800-870 or the VIX which has been trading between 40-50.
However, if you don’t like trading indexes Najarian says, “look at Excel Maritime . It’s a buy at $6 and a sell around $9.” Or you can execute the same trade with ArcelorMittal . “It’s a buy around $22 and a sell around $28.”
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Trader disclosure: On Feb. 10th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (TM), (SDS), (AAPL), (MS); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Seymour Owns (AA), (BAC), (EEM), (FXI), (MOS), (MON); Seymour Is Short (PBR); Seymour's Firm Owns (VIP); Najarian Owns (CAT) Call Spread; Najarian Owns (MT) Calls; Najarian Owns (ENER) Call Spread; Najarian Owns (EEM) Call Spread; Najarian Owns (CHK) Put Spread; Najarian Owns (FCX) & (FCX) Calls; Najarian Owns (GS) Calls; Najarian Owns (GE) Puts; Najarian Owns (GDX) Call Spread; Najarian Owns (MSFT) & (MSFT) Short Calls; Najarian Owns (MS) & (MS) Short Calls; Najarian Owns (MOS) Call Spread
J. Najarian Is Short (EXM)