People who enter in trades, long only, or short only, are destined to become net losers in this game. Market direction is mostly running on peoples emotions and sheep behavior, they go out of whack, put witch hunting and people on ADD together, you got some strange behavior. If you were only hedged. who cares about the crazinesses. Market can be going buckwild, trade your spread accordingly. If you are bullish on a certain stock, lets say SNDK , long sndk, short EMC equal amounts. let relativeness go into play. You make money with less risk. Trade as if you were trading it normally, all patterns don't get thrown out the window when you are paired. 500% unusual High volume @ 9:30 to 10:00 => Big players in action , movement about to begin. You don't hedge 1) no volume stock fluctuating from 9.10 -> 9.50 in 2 years with 2) BAC Hedge 2 high volume stocks In-play going at the opposite direction. enjoy
I gave this advice out in 2007 and probably in 2006 as well during the housing crash. just doing some public service, for strategies that are actually proftable for me.