Going Flat - Aussie Stock Forums

Results 1 to 2 of 2

Thread: Going Flat

  1. #1

    Default Going Flat

    Know your plan.

    Go flat when the signal says to. (fundamental or technical)

    You can always get back in - might lose a point or two - usually irrelevant - make sure you know the macro's - e.g likelihood of external event/announcment causing gap.

    Don't feel guilty about brokerage - usually only need to save a point or two to cover it.

    If accumulating on fundamentals, still apply money management stops on technicals - if hit generally only a small loss to re-enter vs potential savings and usually able to re-enter below stop anyway if plan gives re-entry signal (e.g. fundamentals unchanged and technical risk has passed).

    Know your plan prior to entry or it becomes churning.

    As a predominately fundamentals based investor/trader that keeps an eye on technicals I've found this a useful approach. Something Swing Trader posted recently by one of the trading guru's sort of confirmed something that I'd started to do anyway but felt guilty about (a purist fundamental investor would say selling signals should only be based on fundamentals - but from experience that can waste a lot of time). Seems to be useful - though if I buy on fundamentals I still tend to only apply it to part of my holding - but from a money management perspective that can be useful - allows taking a bigger position if confident on fundamentals. Also effectively allows for an each way bet and some capital protection if signals are mixed - and if signals align one way or another a re-entry or full exit is still available.

    Had a few glasses of wine - this could be drivel.
    Don't take investment advice from seafood.

  2. #2

    Smile Re: Going Flat

    Hi Cuttlefish,

    Missed your post previously .....

    ..... but, just to reinforce your view, in a few words:

    "Being out of the market IS a trading position."

    happy days


Similar Threads

  1. ASF Poetry Thread
    By RichKid in forum General Chat
    Replies: 1222
    Last Post: 17th-September-2015, 10:38 PM
  2. Dow Jones/Nasdaq!
    By Joe Blow in forum International Markets
    Replies: 78
    Last Post: 19th-March-2010, 12:43 PM
  3. Embarrassingly Stupid Americans
    By wayneL in forum General Chat
    Replies: 55
    Last Post: 29th-March-2008, 12:38 PM
  4. Flat Roofs
    By Smurf1976 in forum General Chat
    Replies: 10
    Last Post: 6th-July-2007, 10:15 AM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Aussie Stock Forums