again, putting it into perspective, the 1st entry to the system
is only down by -1.09%. Most trade ideas on the watchlist I
give 5% or so.
That's why the system is based on the SPY. Now if you
bought say a leveraged ETF like SSO and then you also margined your
account, you would be down -4.4% (because SSO is 2X and your
account overnight margin is 2X for a total of 4) and over your
whole account that would hurt.
But again, that's on you guys if you margin up and/or use
leverage. To me if you have a decent account size, don't
leverage if you can't handle the emotion.
After dealing with the public for many years, one of the most
common trading mistake people do besides over trading is using
leverage that is beyond what their psychology can handle.
Your trade size should match your person risk tolerance,
because trading is mostly a mental/mind game.
rreich- I have some confusion on your
question, are you saying that you haven't entered any of the trades
such as #1 or #2? or did you enter #1 and not #2?
That's what I'm confused about
Without giving any advice, if you haven't entered any of the
trades, then entering now or today would be a better than the
system since #1 was entered at 130.42 and #2 was entered at 129.04
. Yes the trade could still ultimately be a losing trade, but
you are still beating the system. But you have to make this
choice on your own, we are not registered financial investment
advisors and cannot advise you what to do.
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Advice on entering the current SPY trade
Posted by rreich on 8th of Jun 2011 at 12:19 pm
Matt/Tom/et. al.
I havent entered the current trade thus far due to family matters combined with other indicators pointing to more down side the last few days.
Well, Am now considering entering the trade (at this now lower price). Given the system and it's logic, would you take a position at this time?
thanks in advance
Lucky you. If it was
Posted by shinings on 8th of Jun 2011 at 12:55 pm
Lucky you. If it was me, i'd definately take the trade (100% for single or 60% for multiple). So unfair...
again, putting it into perspective,
Posted by matt on 8th of Jun 2011 at 01:06 pm
again, putting it into perspective, the 1st entry to the system is only down by -1.09%. Most trade ideas on the watchlist I give 5% or so.
That's why the system is based on the SPY. Now if you bought say a leveraged ETF like SSO and then you also margined your account, you would be down -4.4% (because SSO is 2X and your account overnight margin is 2X for a total of 4) and over your whole account that would hurt.
But again, that's on you guys if you margin up and/or use leverage. To me if you have a decent account size, don't leverage if you can't handle the emotion.
After dealing with the public for many years, one of the most common trading mistake people do besides over trading is using leverage that is beyond what their psychology can handle. Your trade size should match your person risk tolerance, because trading is mostly a mental/mind game.
rreich- I have some confusion
Posted by matt on 8th of Jun 2011 at 12:54 pm
rreich- I have some confusion on your question, are you saying that you haven't entered any of the trades such as #1 or #2? or did you enter #1 and not #2? That's what I'm confused about
Without giving any advice, if you haven't entered any of the trades, then entering now or today would be a better than the system since #1 was entered at 130.42 and #2 was entered at 129.04 . Yes the trade could still ultimately be a losing trade, but you are still beating the system. But you have to make this choice on your own, we are not registered financial investment advisors and cannot advise you what to do.