Thursday, November 16, 2006

Cutting back some bad positions:

I must use a stop-loss, I must use a stop-loss, I must use a stop-loss, I must use a stop-loss, I must use a stop-loss, I must use a stop-loss, I must use a stop-loss............
Having been SMOKED on my US Equity Index shorts....I am cutting it back a little. Bought £50/point back of SP500 at1400, I was short £100/point all the way from 1241. Nightmare. Really believe in US slowdown, and lower equities, but feels like it will never come, and I can't take the pain any more. I am annoyed at myself for the poor discipline.
I am still short the DOW at 11,500 in £10/point from an options trade, have £50 left of SP500 short, and have a March 2007 PUT on SP500 at 1330 in £250/point. That'll do.
Also cut back some of my GBPUSD short, trading just under 1.8900 I bought back £5/tick. Now have £6/tick short left. Also sold a 1.8850 PUT and CALL to Nov 24, in £5/tick, sold the call for 90 cents and the put for 50 cents. So at worst I put the short back on at 1.8990, or get taken out of £5 of my remaining position at 1.8710. Ho-hum. Have waited to long for the GBP collapse, and again didn't use stop losses so gave away more P+L  than I needed to.
And finally, have put a stop on my Crude long, am long at ~ $59.20, currently at ~ 58.70, and I've put in my stop at 58.20. Have £5/cent on, I am not convinced by this trade, I think confidence has been lost from those in the long side of the energies market (Amaranth wipe-out helped that!), OPEC seem to have lost some control, and the oncoming slowdown I see will not help demand. So lets not lose too much on this one...


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