Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

noami

Reply
barry_1
Super Contributor
has gone short with TOPSKZ ,as she feels there is likely to be a sharp pull back over the next three days plus ,before the market resumes the strong bull run.
0 Kudos
17 REPLIES 17
Terra
Super Contributor
The daily candle will make a nice shooting star @ 30600 ... reversal signal...
0 Kudos
Not applicable
does it need to close below 30600
0 Kudos
cheapcheap
Regular Contributor
sorry guys,i'm not much into ta but when you talk of 30600 is that the futures price of the top40 or spot?
0 Kudos
Russ
Super Contributor
That's brave-down 22% in two days.
0 Kudos
barry_1
Super Contributor
SHES not trying to profit at this stage,she still holds her equal number of longs.
0 Kudos
Not applicable
hedging? so if I interpret the strategy correctly - she is figuring not much more upside from here, but we don't know how big the pullback will be. If it pulls past her longs, she will still be in the money because of her short. If it pulls back to an entry point where her longs are still in the money, she closes out and makes money both ways?
0 Kudos
Rams
Super Contributor
its a good strategy, but what if there is no pullback...then the loss on the shorts will reduce the profit on the longs...what about setting s stop loss, and re-entering when the trend resumes...cost wise it will be the same as for the short entry and exit?
0 Kudos
barry_1
Super Contributor
YES she has a trailing trigger of 16% on each of the long and short.if she sees a direction taking place she will sell the other long before the trigger stops her out.
0 Kudos
Not applicable
that is the drawback of hedging - you sacrifice further profits in favour of increased risk protection - like fixing your bond, for example. You can, in theory, use it for trading as well - but you have to be operating in different timeframes. No point hedging for a week if your trading timeframe is a week - that is zero sum. But if you are trading OST's TA recomendations, for example, then the strategy could work. Short the market but keep your longs (no point what so ever to short your longs!). Me, for example, I figured out a long time ago that you don't make money trading stocks on a single wave. You have to ride multiple waves to get a proper risk reward. So you have to ride the pullback. Now why not give yourself some protection on the pullback?
0 Kudos
SimonPB
Valued Contributor
it ain't zero sum, coz of costs ..
0 Kudos
Rams
Super Contributor
would you hedge or exit at the stop(profit ) and re-enter according to price action?
0 Kudos
SimonPB
Valued Contributor
if trading I exit .. if investing I exit or stay depending on my method .. but hedging is a myth ..
0 Kudos
Quakedog
Super Contributor
Junk! We going up this pm big time!!
0 Kudos
barry_1
Super Contributor
now my own opinion not naomis....market isheading for a bounce ,this afternoon.i would shorten stop -loss on longs to 5% monday morning....or sell out earlier,then ride the shorts for awhile
0 Kudos
Rams
Super Contributor
What strategy do you use to manage your stop losses...do you always exit on your stop loss(or stop profit) or profit targets
0 Kudos
barry_1
Super Contributor
wish i did always exit on stop-losses mark. no i am guilty of indecision at times.i do not exit on profit targets,but do exit if i feel there will be no growth for some time to come....of course this does not refer to installments or property but only shares and derivatives held for capital gain
0 Kudos
Quakedog
Super Contributor
Lets all hold thumbs for the non farms this pm.
0 Kudos