your trade is looking pretty good just a day later

Good point. Sometimes I’ll refer to nat gas as The Widowmaker since it regularly moves up & down 10% or more in a single day & rallies or corrections of 30%+ in just days or weeks are not uncommon either. Double those returns with the leverage from KOLD or BOIL & you will quickly feel the pain if, nay, when on the wrong side of the trade, even for a day or two. Always beta adjust your position size not only to account for the 200% or 300% leverage on an ETF/ETN but also for the volatility of the underlying security.

I usually set stops “somewhat above” a resistance level that I suspect will cap a counter-trend bounce when shorting something in a (or expecting) a downtrend. Somewhat is completely relative to the volatility of each particular security. E.g.- In US Treasury bonds, that might be as little as 1% or less but on nat gas, which fairly regularly moves up & down 10% or more in a single day, somewhat would be more like 4-8% or so.

Yes. Although there isn’t divergence on the 60-min chart of /NG or UNG on this rally into resistance, keep in mind this is simply the first counter-trend rally following the big divergent high & subsequent wedge/uptrend line breakdown on the daily charts of both UNG & /NG. I still view that as a major sell signal & as such, rallies back to resistance, like this, offer objective short entries although I don’t want to see nat gas continue much above that level or the odds of a new (but still divergent) high start to increase sharply.

Soooo, when Randy says it’s time to make a move is best to wait for the end of the day to follow his guidance? I missed that footnote in his coaching.

2nd. KOLD moves by huge swings sometimes. Natural gas won’t stay high forever. I’ve been a KOLD position for over a month and ended up making an 11% profit.

Also, when the market is going crazy, you have to be cautious about purchasing mid day. Seems like you bought right before a big drop. Waiting for the end of day would have saved you 6.9%.

I purchased at an average of 10.21 over the last 30 min of trading.

Sorry to hear of your loss, may it be recovered quickly for you. Well placed stops, as Randy continually suggests would of prevented this or as the rest of the retailers go with hold-n-hope.

I really not a fan of “Somewhat above” I’d rather have a number.. We are definitely somewhat above right NOW!