Average cost:
- 12,338 - 2 * (12,400 - 12,338) = 12,214.
Correction: Should be 12,238, not 12,338. Therefore:
- 12,238 - 2 * (12,400 - 12,238) = 11,914.
Note:
- The further countertrend that I have been anticipating, as published last week in Dow: Further Countertrend, is working very well. In fact, the futures market pivoted almost at the lower edge of the range I anticipated to be risk-conservative before moving "straight up" culminating in the best start of a Quarter in the last 70 years!
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5 comments:
Boon,
CongratualtioN!
U are super really sharp !
Y'day after office hour, I opened the DJIA and try to see the TA. How come I fail out to sense that the market will rebound? The MACD, RSI are not good wo.
2) How come ur position is Average cost is? You publish before that Long position entered @ 12,238.
12,338 - 2 * (12,400 - 12,338) = 12,214
Assume 12620 you close your long position. Profit = 406 pts.
1 pts= US 100
406 pts= $40600 wah (1 contract)
I dont think you play 1 contract only.
Well done , boon.!
Many thanks von! I am just sharing what I could understand. There are many, many others that I will not be able to.
1. If you can't see it coming, that means you don't understand it yet -- as simple as that.
2. In futures, your P/L is governed by the amount of points (or ticks) between your entry and exit. You make 100 points if you enter @ 1,200 and exit @ 1,300. If you have allocated 50% of your initial position as your "hedge" that you will close @ say 1,250 -- your cost will be lowered by 50 points when 1,250 is hit. However, this also means that the final size of your position after "hedging" will only be 50% of the initial. The reason that one might adopt such a strategy is to "earn" him/herself an even bigger margin of safety on top of a formation that he/she *knew* he/she can exploit effectively.
For YM, each point is worth only $5 per contract.
Boon
Boon,
Thanks for your reply.
No wonder you adi resign from your job and now become a full time trader (but I know you not daily trade ) :)
Again and usual, well done for your sexy return !
I encourage you to start spending time on your homework von. There's a long journey for your to go...
Boon,
Thanks & I will remember it.
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