Going to hold GOLD short over the weekend. The research, info and system indicates that selling is about to commence. Of course, nothing is 100% but confidence/odds is high on a sell off. Enjoy! Surf
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The Surf Report--part 2
- Thread starter marketsurfer
- Start date
Quote from EPrado:
Surf...so let me get this straight.
Let's say you sell 1000 shares at 144.95 and it crumbles you will be holding only 1000 shares. But..if it continues to go higher you will be holding another 2000 shares at 2 higher prices for a total of 3000.
So your small position will be a nice winner, but your big position will be pretty far against you.
This is a recipe for disaster my friend.
You have a point my jockey friend. However, with proper position sizing-- a disaster is highly unlikely. Have a great weekend!
http://www.elitetrader.com/vb/showthread.php?s=&threadid=205789&perpage=6&pagenumber=97Quote from marketsurfer:
The coin flips must have worked this month, so far anyway!
One way to think about adding to a trade that has moved against the original position is as follows:
-Each entry is essentially a different sub-system. If each entry level tests out as a viable strategy component independent of the others, there is no inherent reason not to take additional entries. In this framework it is not correct to simply call it, "adding to a loser".
-The risk comes because exposure is being increased while equity is decreasing. This can be managed by trading with a conservative amount of leverage and other methods, and having additional exit criteria to get away from bad trades. I think many people get queazy when they see this being done because they think of "doubling up" to "make it back" which has put many traders out of business. The point is this is not necessarily the mindset or approach that is being used.
Managing equity exposure to forward expectation is always a balancing act. Whatever means one has to increase exposure when expectation is highest, will likely lead to better results, so long as total risk is monitored and a back up plan to preserve capital exists (And that backup plan does not mitigate or offset the use of increased exposure when it is necessary.)
-Each entry is essentially a different sub-system. If each entry level tests out as a viable strategy component independent of the others, there is no inherent reason not to take additional entries. In this framework it is not correct to simply call it, "adding to a loser".
-The risk comes because exposure is being increased while equity is decreasing. This can be managed by trading with a conservative amount of leverage and other methods, and having additional exit criteria to get away from bad trades. I think many people get queazy when they see this being done because they think of "doubling up" to "make it back" which has put many traders out of business. The point is this is not necessarily the mindset or approach that is being used.
Managing equity exposure to forward expectation is always a balancing act. Whatever means one has to increase exposure when expectation is highest, will likely lead to better results, so long as total risk is monitored and a back up plan to preserve capital exists (And that backup plan does not mitigate or offset the use of increased exposure when it is necessary.)
Gold and silver are the only things not getting crushed in this market. Bad call on gold surf.
Surf alert
Rumor has it that us getting downgraded. Short. ES at 1299
Surf
Rumor has it that us getting downgraded. Short. ES at 1299
Surf