Well got myself in a right mess here, Just finding out other peoples feelings on this one, I am on a short with the Dow(March)about £2.5k down, But this route up seems to never end, Should I Eat humble pie or stay in and see if the Drop happens soon, Any coments on this matter would be gratefully received. Thanks to all
If I were you I'd stick to cricket.
Major correction on the Dow ( up to 5% ) does not appear imminent but it probably will come at some stage. It will need a good shake-out at some point - like my dog's blanket.
Depends how deep your pockets are and whether you have nuclear shock absorbers in your underpants.
Major correction on the Dow ( up to 5% ) does not appear imminent but it probably will come at some stage. It will need a good shake-out at some point - like my dog's blanket.
Depends how deep your pockets are and whether you have nuclear shock absorbers in your underpants.
tradesmart
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Cricket – the way I see it you’ve got 3 options:-
1. Cut now and put it down to experience, and hope that you can get it back quickly on good trades.
2. Open a ‘balancing’ long – this way you won’t be losing (or gaining!) any more, and when you’re SURE that a downtrend has started, close long and open more shorts (bigger ones?) which could bring you to breakeven and onto profit quite quickly.
3. Average up by opening more shorts as the price rises; which could get your money back quickly on retracement, but adding to a losing short position in a bull market is plainly dodgy – the index could rise another two hundred points before it has a serious retracement.
The market has had an incredible rise, and any disappointment in the earnings season, which is just starting, could take the index sharply down several hundred points.
It all depends on how deep your pockets are, and how strong your stomach is!
The first cut is generally the cheapest, and a tight stop-loss is your best friend in these volatile markets imho
but you know that now..... :|
1. Cut now and put it down to experience, and hope that you can get it back quickly on good trades.
2. Open a ‘balancing’ long – this way you won’t be losing (or gaining!) any more, and when you’re SURE that a downtrend has started, close long and open more shorts (bigger ones?) which could bring you to breakeven and onto profit quite quickly.
3. Average up by opening more shorts as the price rises; which could get your money back quickly on retracement, but adding to a losing short position in a bull market is plainly dodgy – the index could rise another two hundred points before it has a serious retracement.
The market has had an incredible rise, and any disappointment in the earnings season, which is just starting, could take the index sharply down several hundred points.
It all depends on how deep your pockets are, and how strong your stomach is!
The first cut is generally the cheapest, and a tight stop-loss is your best friend in these volatile markets imho
but you know that now..... :|
This happend to someone on another site. They decided to close
after taking time to think about it. Thats was 300 points ago. Could have caused real damage. My question is why were you adding positions 100 points apart. Understandable if you a scaling in long term positions based on monthly or longer charts. But you would still need a wide stop loss which will cost money and if you are worried about losing 2.5K sounds like both the method and money management is in question. This is what I said to the other guy...hope it helps:-
after taking time to think about it. Thats was 300 points ago. Could have caused real damage. My question is why were you adding positions 100 points apart. Understandable if you a scaling in long term positions based on monthly or longer charts. But you would still need a wide stop loss which will cost money and if you are worried about losing 2.5K sounds like both the method and money management is in question. This is what I said to the other guy...hope it helps:-
