Thursday, September 25, 2008

Covering the Commodity Shorts For Nice Profits

I could not have asked for more from the PCX, FWLT and POT trades. I covered my entire positions and may short again on strength. Note on the charts below that there is still room to fall. Those of you who have been with me for a while know I would usually leave some of my positions open for more profits. However, this market is very volatile, so I am taking profits earlier than normal--especially when I already have solid gains.

Note that this is not overtrading, which I discourage. I still require a solid profit and at least two times my risk before exiting. However, good traders must adjust trading styles to market conditions.

I am still holding DUG and USD (trade mentioned in trade report). USD may be carving out a bottom.

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