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As sort of a numbers geek, I've studied trading systems for a long time.
A few months ago, I discovered one that was pretty good at grabbing small trends for 15%+ gains.
It was initially targeting a lot of long positions, but recently has shifted to short positions, and they've been great. Here are some examples of recent trades I made:
I realize there is an unlimited risk due to potential huge price gains, but I limit myself to small positions (ala Van Tharp) to protect my account balance.
Still, I'm up in total account value by about 30% since 8/1/08 while most accounts are down by at least that percentage.
So what do you folks think? Is short trading too risky? Have I just been lucky, or has the recent downtrend warranted the risk?
A few months ago, I discovered one that was pretty good at grabbing small trends for 15%+ gains.
It was initially targeting a lot of long positions, but recently has shifted to short positions, and they've been great. Here are some examples of recent trades I made:
- AA - shorted on 9/30 for $22.16, covered on 10/6 at $17.81, 19.63% gain
- BHI - shorted on 10/3 for $51.20, covered on 10/6 at $42.70, 16.60% gain
- NBR - shorted on 10/3 for $22.05, covered on 10/6 at $18.44, 16.37% gain
- GLW - shorted on 10/7 for $14.01, covered on 10/8 at $11.338, 19.07% gain
I realize there is an unlimited risk due to potential huge price gains, but I limit myself to small positions (ala Van Tharp) to protect my account balance.
Still, I'm up in total account value by about 30% since 8/1/08 while most accounts are down by at least that percentage.
So what do you folks think? Is short trading too risky? Have I just been lucky, or has the recent downtrend warranted the risk?
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