Comments on: UGAZ Swing Trade Update https://rightsideofthechart.com/ugaz-swing-trade-update-2/ Stock Trading, Investing & Market Analysis Wed, 12 Jun 2019 18:44:21 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: rsotc https://rightsideofthechart.com/ugaz-swing-trade-update-2/#comment-6479 Wed, 12 Jun 2019 18:44:21 +0000 https://rightsideofthechart.com/?p=191676#comment-6479 IMO, stops are not optional on any trade but especially on something like UGAZ as this trade can get away from you so fast that your head will spin. I’ve seen UGAZ rise & fall over 30% in a single day…. and then do it again the next day. Yes, those are extremes but I’ve seen it more than once & single-day double-digit gains & losses are fairly common. Add to that, natural gas redefines the rules on what ‘overbought’ and ‘oversold’ are or can become. If you don’t cut your losses on a UGAZ trade that goes against you the losses can pile up fast & probably go well beyond what most think they can amount to in relatively short order.

In my former life as a stockbroker/financial advisor, I was required to abide by FINRA rule 2090, commonly known as the “Know Your Client/Customer” rule. In trading, I have my own rule that I believe is imperative for every trader to abide by and that is the “Know Your Trade/Position” rule.

Nat gas has been relatively tame lately but then again, so was Siegfried & Roy’s tiger, until he wasn’t. Just don’t turn your back on a nat gas position meaning stops in place at all times.

]]> By: Brandon https://rightsideofthechart.com/ugaz-swing-trade-update-2/#comment-6476 Wed, 12 Jun 2019 14:17:21 +0000 https://rightsideofthechart.com/?p=191676#comment-6476 Thanks for the update! Why do you say stops are not an option with leveraged ETNs?

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