At least my exposure in Anglo is really big, much bigger than I would normally trade (but my system has enabled me to increase my exposure over the last 2 months). It is giving me a really good start to the year. But I am super annoyed at missing out on Metorex. My gut told me to get in last week, but I was worried about the thin volumes of trade in the JSE - and big spread stocks like Metorex can hurt if a correction comes. Still, an adjusted position size could have overcome that risk easy. My gut still told me to get in yesterday, with the 5% move, and I didn't. I have learn't many times that the gut is a powerful indicator, and should be trusted at all times. Oh well, fantastic opportunity lost
Lambchop, I agree with you....the gut is an amzing indicator.....there is something to be said for intuition in the markets. Sometimes I will trade a gut trade with a small position.....most times you come out smiling.
Rams, I am a discretionary trader - I don't have mechanical entry and exits. My rules pertain to my money management and position sizing. My system has 3 principles 1) when JSE is trending up I must be in - period. 2) I make sure I am in stocks that are showing relative strength to the market (although I do enter stocks that are showing strong price action at support levels). 3) I adjust my stops on winners and exit weak stocks, so that I can keep going long. The goal is to get 10 times gearing on my total capital (without ever risking more than 6%) so that a 10% general market move will double my money. (admittedly I have not ever hit that target before). I hate shorting, so I adopt a permabull attitude and keep looking for buying opportunities
Skaap,that is an interesting approach, but should it not be the other way round where the market determines your position size based on probability and all you decide on is whether to accept what the market tells you and act on it.Is there such a system because that would be like "Trading in the Zone"!