Mentioned a couple days ago my trade in natural gas, UNG (ETF), had finally moved in my favor, but I stayed away because it had a huge 5%+ day. Today it pulled back to about 2% above my initial purchase and I went back in for my second buy. You can see the update on the How I'm Doing page.
I'll discuss stops in more detail in a later post, but on UNG, I had set my stop prior to today at 5.24, slightly below a long term low of 5.27. Well, now I have more exposure and that's a 14% drop from today's close which is more than I'm willing to risk. I don't set my stops the same way on each position, but I'll rarely have more than a 10% stop. There's a recent low (mid-December) at 5.53 so I'm going to move the stop up toward that, which will put me just under 10%.
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