"The only way to trade with Fibonaccis" journal

Quote from kenwx23:

Since SH is just a short S&P fund, isn't buying shares of it equivalent to selling off some of your SPY position?
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Whoa, registered in 2009 and first post at the end of 2011 in my thread :D

The answer to your question is yes and no.

Selling off some SPY and then buying it back, selling it again, etc., may result in extra wash sales. But the main reason is I prefer to treat them as two separate trades. It's easier for me to manage the trades that way, and easier to envision what is happening, and it's also psychologically rewarding to close the short position for a profit (rather than buying back some of the same SPY shares I would have sold earlier).

Also, by holding more SPY I potentially receive more dividend.
 
Quote from 1a2b3cppp:

Whoa, registered in 2009 and first post at the end of 2011 in my thread :D

The answer to your question is yes and no.

Selling off some SPY and then buying it back, selling it again, etc., may result in extra wash sales. But the main reason is I prefer to treat them as two separate trades. It's easier for me to manage the trades that way, and easier to envision what is happening, and it's also psychologically rewarding to close the short position for a profit (rather than buying back some of the same SPY shares I would have sold earlier).

Also, by holding more SPY I potentially receive more dividend.
More...

Thanks for the response. The reason I ask is because I've found myself using hedges similarly because of the same psychological reasons you mentioned.

Also thanks for bringing me out of permanent lurker status!
 
11/30:

Gap up out of nowhere!


SPY: $5,102.00
Hedge: -$1,315.00

Net for this trade:

--------------
$3,787.00


I wanted to buy a little more SH today around the close but I got busy doing something else. I'll buy more tomorrow if it's around the same level.
 
Sorry for not updating yesterday. I was out of town.

12/5:

SPY: $6,086.00
Hedge: -$1,850.00

Net for this trade:

--------------
$4,236.00



12/6:

SPY: $6,118.00
Hedge: -$1,898.00

Net for this trade:

--------------
$4,220.00
 
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