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Strategies & Market Trends : Playing the QQQQ with Terry and friends. -- Ignore unavailable to you. Want to Upgrade?

To: rab120 who wrote (487)	5/31/2005 9:58:27 PM
From: Walkingshadow	Read Replies (2) \| Respond to of 4814

Hi rab, <<why do you prefer RYDEX instead of QQQQ ?>> I don't really prefer Rydex funds. But in some of my accounts, I cannot take short positions (retirement accounts). And if I am trading something, I like to have the ability to play both sides as needed. That helps minimize my bias, even if I don't actually take a short position. It is not easy to trade QQQQ long/short with MFs. But it can be done. And I like the leverage you can get with some of the Rydex funds (and others). That leverage (200%) is to me quite reasonable. <<to add to losing position is not common trading rule, isn't it? >> Yes, you are right. That's called throwing good money after bad. We'll have to see how this works out, but I don't think adding to a short position here is throwing good money after bad. The initial short position was not bad (IMHO). Just too soon. I tend to do that... I get into positions a bit too early. My reasoning FWIW is that all factors that led to the original short position as still in place, and even more valid now. Unless and until I see evidence that there were flaws in the original plan, it makes sense to me to add to the position. So in general, this sort of thing should be avoided, or carefully thought out at least in terms of the reasons for the trade, and the validity of each of the reasons. But I think I will be throwing better money after good, not good money after bad. One thing for sure... I can NOT see any justification at all for a long position at this time, unless it is a long-term (6 months or more) long position. T