14444 on Dow... Would be 40-50 ES points.. Around 1550-40..
ES Journal - 2013
- Thread starter Trvlwanderer
- Start date
How so?
What if you're short and the market gaps up 20 points on Sunday night?
Or the market surges 30 points in 30 minutes?
Both have happened at least once.
Does not matter if it's a flash crash or not, you're still 20 points in the hole.
Price shocks can occur upward as well. With oil in particular, I think price surges are probably more common than crashes. Not that long ago, oil actually went up about 3$ in an extremely short amount of time when some news hit the wire. A minute maybe?
My point is that while longs fear a crash, shorts should not feel safe either, as history shows it can be just as risky to be caught short these days.
Quote from Laissez Faire:
Does not matter if it's a flash crash or not, you're still 20 points in the hole.
Price shocks can occur upward as well. With oil in particular, I think price surges are probably more common than crashes. Not that long ago, oil actually went up about 3$ in an extremely short amount of time. A minute maybe?
20 points is nothing , the idea was to eliminate some not all the risk of a rare event , basically the market could be limit down within few minutes . ofcourse that is not applicable to commodities ....
Thats a myth. The upward moves were dramatically sharper than downward moves between the years 1997-2000, of course the subsequent move down after 2000 was just as quick but thats another story.
You are risking your money each time you put in a trade, long or short it doesnt matter, there is no such thing as a "safer" trade.
long term lines
spring to 1511+