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kirby49

04/25/03 4:49 PM

#581 RE: Croesus I #580

LOL Jumping like a grasshopper. Beware the hidden cost of slippage and fees. Patience, but then not so much as me acting brain dead in a wall of worry like my post last night.VBG So my conundrum last night was to short to hedge and level the playing field for a bad day or possibly a bad day and a weekend through opening Monday. Or not! Fees vs slippage vs risk. After entering my eight two weeks ago and willing to risk 10% including fees, I'm up 5 and risking nothing having been up to 10. Should I have sold at 10? Didn't so it's moot, and probably am still better off as I forseeVBG little change in the world's landscape so let the positions ride. After 2 weeks I've reduced my risk from 10% to nothing, except having tied up my money for two weeks. Fees to buy the shorts to enter the hedge and then to unwind the hedge next week and pay the fees to close positions on the side against the hedge, and take the slippage out of the hedge as a cost, because although it is offset by the profit of the remaining open positions, that remains a paper profit and is still at risk. All that in fees and cash to pay for now would have taken me down from 5 to 2 1/2 to 3, whereas todays slippage alone takes me to still over 4 1/2. So I've just come in from riding my bike all afternoon and if I'm stopped out of everything anytime, I've still covered all the bastards F"""kiin fees and if I've set things up well enough, I can salvage a percent or two. If that happens, perhaps I'll stand aside until I decide on another play. Now it's back to the bike and the worrying ends until Sunday Night <LOL>. There's always some DD to try and forsee what your next play may be and that may be surmised during the weekend.