pairs trades?

Quote from snugglepuppy666:

any one doing it?

what vehicles?

indexes or stocks?

best of breed vs weakest?

pros cons..

tia :)
I have made some pair trades.

Long GS (Goldman Sachs), short CFC (Countrywide)
Long XON (Exxon), short TOL (Toll bros)

I only make pair trades seldom, pair trading is done when you're not sure of future movement of the indexes.

IMO pair trading yields modest profits (perhaps I was a bit late), but in times where there's uncertainty, so directional trades are almost sure of having losses (getting whipsawed), regardless if you're bullish or bearish.

I would say that you should start pair trading with SECTOR ETFs, before getting into individual stocks.
 
Quote from crgarcia:

By the way, why is this thread on options?
Pair trading is usually done with stocks, not with options.

thanks for the reply,

yes these would be option trades.
 
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