InvestorsHub Logo
icon url

SyndicateTwo

04/07/06 2:09 AM

#28785 RE: zelareka #28777

That's actually a very good question. And I will tell you exactly why. Trading range bound markets like this are very tricky because you never know when it's all going to turn. Sure, you got tops of ranges to sell from and bottoms to buy at. But any one of those tops or bottoms could be the last one. You never know. The longer the ranges continue, the more the chances are that they break out or down. I hate that.

When the market trends up or down, you then know which way to go and you don't have to do things like buy puts to hedge which limits your net profit potential.

I like to be covered, but not if I don't have to.

Remember the late 90's? Remember how much fun that was?