Thursday, 26 July 2007
sleepless night
For some reason i couldnt sleep well last night. My 2 year old daughter was sick and kept appearning in my bedroom like a ghost to see what i was doing; to check i was sleeping. Perhaps i am developing an intuition: either way i checked in on the markets to see the huge drop in progress. wow!
When it is dropping in front of you, fast, with no end in sight, assuming your account allows it, place a short to cover your long positions. I place a short which covered my longs and a bit more for profit. These runs down generally last for a week at most, so you need to be able to lift that hedge pretty quickly also, so a trailing stop is not a bad idea here either.You dont need that hedge weighing you down like an anchor when the market turns back up.
I was thinking of doing this on the demo account, as a sort of demonstration; but felt that it was a form of interference that couldnt be guaranteed by someone else running the account, and so best so leave it alone, plus it will be good to answer the drawdown questions, which form the bulk of the carrygrid questions.
When it is dropping in front of you, fast, with no end in sight, assuming your account allows it, place a short to cover your long positions. I place a short which covered my longs and a bit more for profit. These runs down generally last for a week at most, so you need to be able to lift that hedge pretty quickly also, so a trailing stop is not a bad idea here either.You dont need that hedge weighing you down like an anchor when the market turns back up.
I was thinking of doing this on the demo account, as a sort of demonstration; but felt that it was a form of interference that couldnt be guaranteed by someone else running the account, and so best so leave it alone, plus it will be good to answer the drawdown questions, which form the bulk of the carrygrid questions.
Labels: hedging
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