Going long and short

[obayesshelton]

Hi,

I just read an article on the guardian's website about trading courses etc and the writer said the speaker said "Always place the same number of trades long (speculating that prices will rise) and short (that they'll fall) so you're covered whichever way the market goes. And never forget to use a "stop loss" to minimise any losses."

Does anyone actually do this ?

 

[timsk]

Hi,

I just read an article on the guardian's website about trading courses etc and the writer said the speaker said "Always place the same number of trades long (speculating that prices will rise) and short (that they'll fall) so you're covered whichever way the market goes. And never forget to use a "stop loss" to minimise any losses."

Does anyone actually do this ?

Hi obayesshelton,
Welcome to T2W.

There is a thread from last year in which the pros and cons of doing this were debated quite vigorously and at length. Check it out: Can you be long and short at same time?
Enjoy!
Tim.

 

[obayesshelton]

Thank you very much for that

Hi obayesshelton,
Welcome to T2W.

There is a thread from last year in which the pros and cons of doing this were debated quite vigorously and at length. Check it out: Can you be long and short at same time?
Enjoy!
Tim.

 

[Mrs M]

Sounds a lot like Martin Carter's MRP systems. I read an article recently (sorry, I can't remember where) about how correlation in the markets is on the increase with faster trading, betters comms etc - and how correlation trading is the way of the future??

 

[thammu]

thanks for the share

thanks for the share

 

[Vicorka]

Hi,

I just read an article on the guardian's website about trading courses etc and the writer said the speaker said "Always place the same number of trades long (speculating that prices will rise) and short (that they'll fall) so you're covered whichever way the market goes. And never forget to use a "stop loss" to minimise any losses."

Does anyone actually do this ?

It may work in trending markets, but I do not think it will work in ranging markets when price moves side-way. What if one of your stops is hit and then price make strong reversal.

 

[random12345]

Hi obayesshelton,
Welcome to T2W.

There is a thread from last year in which the pros and cons of doing this were debated quite vigorously and at length. Check it out: Can you be long and short at same time?
Enjoy!
Tim.

Tim, I'm pretty sure that article is referring to mixed stock portfolios and not to going long and short on the same instrument...

In that respect OP, it's a vague concept used by training course pondlife to sound intelligent, while ignoring sector performance etc etc.

 

[Just'n Case]

The only time when I'm short and long at the same time is during a corrective wave.
Usually in the prevailing trend for weeks/months and hedge the corrective wave.