User 161034

How to Trade in a Crisis

Fred, Your comments are well-taken, re trading the SDS. Check out the Trader Results on my website. Buying SDS when the market rallies has worked for us with this caveat: It has to be in or below its Entry Zone.
We use limit orders,not market orders, and adjust the price according to the next day's Entry Zone.

We have been inclined to just hold the GLD, again buying on dips when price is inside the Entry Zone.

GLTA

On Mar 02 12:22 PM freddyv wrote:

> Agreed. This is my basic position and it has worked well for well
> over a year now.
>
> One should be wary of all ETF's, especially the leveraged ones but
> the SDS has performed much as expected, with little of the inefficiencies
> of other leveraged, more focused Exchange Traded Funds.
>
> However it is not recommended that you hold SDS for a long period
> of time as it will deteriorate and it tends to outperform in short
> bursts of market turmoil. In short, if you have a great run with
> the SDS take your profits and wait for it to come back to a better
> price level. History tells us that even a rapidly declining market
> with additional downside potential will not move straight down but
> will consolidate and rally along the way; BUY SDS INTO THESE RALLIES!
>
>
> I also agree with holding GLD. Given the possibilty of a total financial
> meltdown growing out of Eastern Europe, holding 10% of your portfolio
> in GLD is a wise move.
>