Guys on DUG, remember that the DUG
triggers NEVER worked as well as the DIG buys. So again be
careful when you do these, again the system works fine, but don't
go crazy on margin. In hindsight, if you would have bought
DIG at 88 on March 26, then you would up up enough on that trade
that you wouldn't worry about DUG down 6%.
Tonight I will provide an update on DUG. I
will post the updated BPENER chart, will be interesting to see how
close it is to the 9 EMA. On a negative note, the DIG Renko
daily chart today gave a buy signal for DIG.
DUG is a countertrend trade with large headline and geopolitical
risk. DIG is a trend trade, which is therefore much less
risky. For those that are not particularly aggressive, they
may be wise to not only not use margin for DUG trades, but to limit
themselves to trading your DUG/DIG system on the DIG side
only. Inexperienced traders should be particularly leery
about using margin and countertrend trading (especially on the
short side, as is the case with DUG). That's my opinion
anyway, FWIW.
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Guys on DUG, remember that
DUG CRM
Posted by matt on 6th of May 2008 at 04:02 pm
Guys on DUG, remember that the DUG triggers NEVER worked as well as the DIG buys. So again be careful when you do these, again the system works fine, but don't go crazy on margin. In hindsight, if you would have bought DIG at 88 on March 26, then you would up up enough on that trade that you wouldn't worry about DUG down 6%.
Tonight I will provide an update on DUG. I will post the updated BPENER chart, will be interesting to see how close it is to the 9 EMA. On a negative note, the DIG Renko daily chart today gave a buy signal for DIG.
DUG is a countertrend trade
Posted by martin on 6th of May 2008 at 04:13 pm
DUG is a countertrend trade with large headline and geopolitical risk. DIG is a trend trade, which is therefore much less risky. For those that are not particularly aggressive, they may be wise to not only not use margin for DUG trades, but to limit themselves to trading your DUG/DIG system on the DIG side only. Inexperienced traders should be particularly leery about using margin and countertrend trading (especially on the short side, as is the case with DUG). That's my opinion anyway, FWIW.