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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DUG is a countertrend trade
DUG CRM
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.