Thursday, September 18, 2008

Trailing Stops Work

Trailing Stop saves the day - captured about 1/2 the Profits from my P/L high. Got busy and missed the breakout higher but today getting in late still pays with exaggerated and strong directional momentum moves higher. I will continue to have a short bias and and use rallies to re-establish positions. Tighter stops on long positions and wider stop on shorts

A strategy I use when covering an open position is to cover by more then a 1:1 (short 1000/sh buy 1500, or long 1000/sh sell 1500 to effectively reverse your position) it could be costly in a sideways market, but lately the intra-day reversals have had great momentum.

US Dollar rallies and Gold $847 down $3.00 after being up $40, well off the highs of the day

Happy Trading

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