a couple of thoughts:
1) gary indicates that last year his longs were not his strength, shorts were...why trade the "weaker" side of his system?
2) mentally, shorts are tougher, but i think it's more emotional than anything else.
3) trade size...i trade in a fixed dollar amount, not share size..datek fills my LIMIT ONLY orders whether it's 100 shares, or 268..round lots not required. i may miss some plays due to limit requirement, but i dont trust MM at the open...
4) id be uncomfortable having 10-12% of my capital in any single position...too much cash can be lost in a single trade, relative to portfolio size. i use 3-5% of my capital in any single trading position
5) i'm unable to "keep it simple", but i'm willing to be on the sidelines, so...i would not have gone long during the last week, because i didn't trust market internals, and expected a "blow-off".
that's my risk/reward model..yours, i'm sure, is different.
don't put all your eggs in gary's basket until you demonstrate to yourself that it's actually working...real dollars, real trades
LOL
david |
