<Suppose your progress is negative? What does this do for confidence?> I would take some days off to reflect on what went wrong and try to find what works for you
<Hedge? When neccessary? This one I gotta hear. > I know it is dangerous ... but if the spead is wide and the trade went against you in the original derivative and the arbs have not closed the gap on a highly related derivative with a high correlation ... on has a chance to hedge and then offset later on when the spreads and markets calm down
I am not convinced about this - I will often take a trade LOO on either side of a pair that I am willing to put on at the levels that it went out the day before [presumably, I am getting an even better spread if filled LOO.] I often will get filled on one side or the other. If it is the short side that I get filled on and the stock goes against me, I will look to the other one to buy it, in effect turning a "scalp" into a "hedge." [I don't have access to bullets so this only works one way for me.] Still, I have gotten burned - maybe even more often then you one would expect... nitro