Managed risks?


Stock market capitalization in 2005
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The risks now?

  • Risk of being left behind if the fear was an anomaly and there is now the mother of all buying opportunities: my strategy? Continue to trade intraday with no overnight risk, at my usual levels of risk, in large cap US companies, and broad index ETFs, in either direction based on daily directional momentum.
  • Risk of being crushed in longer term positions. My strategy: honor the ruleset of ETF2, and take up to 2 signals per cycle in the mechanical ETF systems at usual risk levels.
  • Combination of 1&2: this is what I ALWAYS do anyway; I conclude that the combination is robust and useful. Particularly when circumstances conspire like Wed-Fri to produce over 100R in 3 days will no overnight risk.
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  1. Terry Lesniak
    May 10, 2010 at 4:21 am

    With the world scrubbed clean with bailout dollars, this should be the mother of all gap opens! Location, or the lack thereof, IS the definition of risk…5:15A.M. with a 50pt. S@P gap. This cannot over the long run end well. Be careful where you put your trades on…should be an interesting day!

    Best wishes, Terry

  1. May 24, 2010 at 11:26 pm
  2. May 25, 2010 at 12:25 am

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