09-09-2011, 09:27 AM
Grieve Wrote:But...you never quite know when you are going to get 8 down days in a row, or 8 up days in a row for that matter. If you stop is triggered, when you do get back in? And how do you figure out what the current range is? It seems to be more due to fundamentals/news than technicals right now.
Yep, this is the subjective risk part. You have trust your gut when you jump in. But note that if you jump in and its followed by a large swing in the opposite direction of your bet, then you lose around 5%. Lick your wounds and wait for the next jump....
I think this works in the volatile market we have right now, but not in a standard environment. My bet right now is that we will not see a drop below 10k in the next week, and that some euro news or news on republicans saying they might deal with Obama will launch the market positive again. So I will trade on that hunch.
Maul, the Bashing Shamie
"If you want to change the world, be that change."
--Gandhi
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"If you want to change the world, be that change."
--Gandhi