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Strategies & Market Trends : Position Trading Forum -- Ignore unavailable to you. Want to Upgrade?

To: Fredman who wrote (6669)	11/12/1998 12:45:00 AM
From: Nandu	Read Replies (1) \| Respond to of 7247

In my opinion, those who say you should watch positions all the time is wrong. Surely y'all heard of Gary B. Smith. He picks a short or a long based on TA. Enters an order to buy or sell at the open. Once the order fills, he enters a limit at 5% profit and a stop at 6% loss at the same time (his broker allows this), and forgets the position for a month. He has been making money, but can hardly be called a buy and holder.

To: Fredman who wrote (6669)	11/12/1998 12:45:00 AM
From: epicure	Read Replies (1) \| Respond to of 7247

There are other ways to protect yourself- playing multiple sectors is one way- if you are spread through more than just tech for example, a tech correction will not destroy you. You can be long a strong stock and short a weak sister- a paired trade- for example I went long PEP and short KO (not a weak sister but overvalued in comparison to PEP) a while back- it worked out well for me. You can be long a stock but buy protective puts. I am sure you can find articles on hedging and Mike Burke on Ask Michael Burke has some very interesting opinions on the subject.