10/2 How I'm trading inverses on Trump's covid dx: UVXY SDOW SPXS SQQQ TZA

Discussion in 'ETFs' started by KCalhoun, Oct 2, 2020.

  1. deaddog

    deaddog

    I'd like to hear your definition of "Pro"
    That hasn't been my (admittedly anecdotal) experience.
     
    #31     Oct 8, 2020
    murray t turtle likes this.
  2. %%
    OK- I have no quarrel with the narrow SEC/NYSE definition of ''professional''
    But M Webster [since 1828]sets the gold standard/includes 3 definitions;
    characterized by, or conforming to technical or ethical standards in the workplace. But like you said-- dont pay pro fees.They tend to trade super fast also+pay up for speedy fees...………………………………………………………………………………………………………………………...
     
    #32     Oct 8, 2020
    deaddog likes this.
  3. deaddog

    deaddog

    Ken; You started this thread, it would be nice to have you update it every day.

    Be interesting to see how you manage trades that move against you.
     
    #33     Oct 8, 2020
    KCalhoun and murray t turtle like this.
  4. %%
    Thats the example of scale in advantage buys[inverse]= TZA + SRTY are mostly the same, but vastly different prices, KCalhoun.
    Closed profits on IBUY, QLD, today, which I wanted to in SEPT, but wow,qld dropped faster than I could close profits in SEPT...…...IBUY is semi-liquid/ but super easy name to remember/LOL:D:D:D:D:D:D:D
     
    #34     Oct 8, 2020
    KCalhoun likes this.
  5. KCalhoun

    KCalhoun

    Sure..... I have been taking small steps during moves down, was mostly cash last night. Put in orders to get back in SQQQ SDOW TZA LABD if they bounce later today.

    For swingtrading my rule of thumb is to add to winners at 2day highs and scale out of losers at 2day lows.
     
    #35     Oct 8, 2020
    murray t turtle likes this.
  6. deaddog

    deaddog

    Could you clarify scale out of losers at 2 day lows?

    When your position makes a 2 day low how many tranches do you scale out and a what point.

    Let's use SQQQ as an example; On Friday you bought twice once for 24.25 and then at 24.13

    You didn't specify if these buys were in 2 different accounts (Day and swing trades)????

    Could you walk us through the scaling out process?
     
    #36     Oct 8, 2020
    murray t turtle likes this.
  7. KCalhoun

    KCalhoun

    Hi, it's complicated how I scale since I both and swing trade in two accounts. I can review it using charts in tomorrow's free noon webinar.

    General guidelines I try to follow:
    • Use eod price as deciding factor to add to winners or scale out of losers
    • I scale in and out daily using 30-50% positions
    • If at the eod unrealized PnL is green I buy more, if red I lighten up
    TASC subscribers see http://technical.traders.com/archive/archivelogin.asp?file=\V38\C05\049CALH.pdf&src=SC
     
    #37     Oct 8, 2020
    deaddog likes this.
  8. deaddog

    deaddog

    If I have time I'll tune in.

    What I am curious about is why you scale out of a loser? Please take some time to explain that concept. Especially with swing trading.

    If your swing trade hits your stop, the point at which you determined you should get out, why would you not close the whole position and take your loss?

    Is it a FOMO thing or possibly afraid of sellers remorse.

    Do you have data that shows you are better off scaling out? What percentage of your trades turn around after you close the first tranche?

    Would you be better off closing the position then re entering if it turns around?
     
    #38     Oct 8, 2020
  9. KCalhoun

    KCalhoun

    Good point, main reason I scale in and out is because there's often v or A shaped major reversals for both swing and daytrades. So many times I stop out and then it moves up without me.

    I found over time that starting small then scaling helps manage fomo while keeping stops small.
     
    #39     Oct 8, 2020
  10. deaddog

    deaddog

    I can see that for entering a position. Don't know about exiting with a loss. Seem like you would just end up with a bigger loss over a number of trades.

    After all a stop loss doesn't prevent losses it just keeps them small. I prefer to call them capital preservation exits.
     
    #40     Oct 8, 2020
    KCalhoun likes this.