I still like DISCA, but was stopped out of my long position this morning. So I imagine the logical question is, why did I let myself get stopped out? Sure, I could have canceled or moved the stop, but I could be wrong about the stock. Stops are there to protect the downside and limit risk in case I've made a mistake on DISCA.
I still have my Feb 35 call on DISCA, and expect to keep that for now.
Showing posts with label stops. Show all posts
Showing posts with label stops. Show all posts
January 14, 2011
January 5, 2011
Natural Gas (UNG)
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%.
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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