Monday, April 05, 2010


safer to take profits and possibly short it if the markets continue to point down

AIG
Posted by at

2 comments:

Bob said...

Hi -

I have a couple of questions for you if you don't mind: I think I am a little too eager to scale up. How do you approach increasing a position? ME turned on a dime for me today, and I got left holding the bag after I added to my position (entered at 10:44, increased at 10:52, after volume surpassed previous).

My other question concerns exit timing and short run-ups - do you consider any point in the 5-minute bar eligible for exit? Or do you make it a point to wait until the halfway mark or something?

Thanks for the time, any insight would be much appreciated.

2:09 p.m.
Scott said...

DTF- If the market conditions warrant it I like to scale in quickly, sometimes seconds apart. If the momo is with you it's better not to wait.
If the market is not really moving much than I'd just keep the original size. With the recent choppiness it's safer to to get extended.
For exiting, it all comes down to momentum or lack of it. WHen the trade stalls or starts to slow down, take those profits and get out.

7:43 p.m.

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