The reason for my post regarding hedging was because of the current
circumstance surrounding the Greece situation and the number of
posts and private messages I have received from
members. As you can see from members comments previous
to my post, some have become very emotional and my comments were
primarily directed at such members.
Hedging is sound practice when uncertainty reins (especially after
a large move) but I clarified that one would at least need a short
term sell signal to initiate a hedge and that again would depend
upon one's trading time frame. The practice of hedging certainly
requires a plan and a consistent approach and most are better off
simply letting the system run unless they simply find themselves
unable to deal with fluctuations. Again, it's a matter of personal
choice and my comments were primarily directed at those members who
have trouble dealing with their emotions. The primary reason some
of you are having an issue is that you likely have too much
invested - practice sound money management and you will sleep
better.
Posted by sschulman on 29th of Jun 2011 at 09:20 am
RM686 I did the same thing. Thus I'll bet many of the more
silent blog-members did the same thing. I work Fridays and Mondays.
Although it's no problem accessing my laptop which I of course take
to work on work days, I just didn't want market-concerns
interfering with my focus at work. Could have hedged but just got
out instead.
I've actually never traded a system before - it's amazing how
much emotion plays a part. Objectively, nothing should be simpler,
yet there seem to be so many deceptively-valid reasons to stray
from it.
I was away all last week and that got me into a nice mindset
with the system that I am continuing now that I'm home. If
I'm out of the house or even just in the backyard, I check email on
my iphone around 3:00 - 3:30 and if there's a heads-up from the
system I check the price of SPY -- the Bloomberg app is great,
gives you instant prices on equities and futrures -- and check it
again at 3:45 and if we're close then, I set up trades for the
close and monitor the last 15 minutes. Don't even need a
computer.
Comment
Posted by steve on 28th of Jun 2011 at 08:41 pm
If anyone is concerned about giving back gains you may consider putting on a hedge should you get a short term sell signal.
Follow Up to My Comment From Yesterday
Posted by steve on 29th of Jun 2011 at 04:28 pm
The reason for my post regarding hedging was because of the current circumstance surrounding the Greece situation and the number of posts and private messages I have received from members. As you can see from members comments previous to my post, some have become very emotional and my comments were primarily directed at such members.
Hedging is sound practice when uncertainty reins (especially after a large move) but I clarified that one would at least need a short term sell signal to initiate a hedge and that again would depend upon one's trading time frame. The practice of hedging certainly requires a plan and a consistent approach and most are better off simply letting the system run unless they simply find themselves unable to deal with fluctuations. Again, it's a matter of personal choice and my comments were primarily directed at those members who have trouble dealing with their emotions. The primary reason some of you are having an issue is that you likely have too much invested - practice sound money management and you will sleep better.
Is this a new system
Posted by ascr on 29th of Jun 2011 at 09:13 am
Is this a new system rule?
Yeah, that's what I did.
Posted by cw12 on 28th of Jun 2011 at 09:34 pm
Yeah, that's what I did. I hedged against my longs by writing some ES EOM 1300 Calls today.
RM686 I did the same
Posted by sschulman on 29th of Jun 2011 at 09:20 am
RM686 I did the same thing. Thus I'll bet many of the more silent blog-members did the same thing. I work Fridays and Mondays. Although it's no problem accessing my laptop which I of course take to work on work days, I just didn't want market-concerns interfering with my focus at work. Could have hedged but just got out instead.
I've actually never traded a system before - it's amazing how much emotion plays a part. Objectively, nothing should be simpler, yet there seem to be so many deceptively-valid reasons to stray from it.
.....Susan
I was away all last
Posted by Michael on 29th of Jun 2011 at 10:07 am
I was away all last week and that got me into a nice mindset with the system that I am continuing now that I'm home. If I'm out of the house or even just in the backyard, I check email on my iphone around 3:00 - 3:30 and if there's a heads-up from the system I check the price of SPY -- the Bloomberg app is great, gives you instant prices on equities and futrures -- and check it again at 3:45 and if we're close then, I set up trades for the close and monitor the last 15 minutes. Don't even need a computer.
Right idea..
Posted by burkmere on 29th of Jun 2011 at 10:49 am
Your approach is one of the healthiest I've heard so far, Michael. Congrats on making the mental adjustment.