Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: oldsman who wrote (9454)	5/21/2008 10:13:57 PM
From: stomper	Read Replies (4) \| Respond to of 33421

If you don't want to get too esoteric, DUG is "easy". I know nothing of it's component make up though.

To: oldsman who wrote (9454)	5/23/2008 8:21:14 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

Hi oldsman... DUG is a nice investment vehicle for a tradable short of the energy service sector complex. Just use a normal %weigting of your short position and if you don;t have specific guidelines for the percentage of your trading capital to put at risk in any given trade use 2%. ... as a stop loss. NO one here wants you to get rich on a single trade, which truth be told is still against the major trend in energy crude..etc. We just want you to develop a trading money management system that is quantitatively based and enables your profitable trades to run 2 , 3 5 or 8 times as much as your predetermined stop loss. The absensce of a rigid system of risk/money management will kill even the very best or intuitive or technical traders over time. Take the passion out of any position and put your dollar allocations of RISK at a 2%of your portfolio and you will be fine...... one addendum.... don't thing that you can have a series of postitively correlated trading postions and somehow beguile yourself into believing that you have not taken your basic premise of a 2% risk on your equity base and have not kicked it up to an unacceptably higher 8 or 12% of your equity. John