PeteKim 17 Dec 2008 09:10
I use the 2 when I feel that there has been a recent rally or fall , that ould have only been for a matter of minutes , and that it could change direction so put 1 on the other way. Whilst there may be an overal trend , it is more for covering the swings that become evident whilst in trading mode. I also tend to use mini contracts that could be several in number and buy and sell a number of contracts as oposed to closing full positions if the swing is likely to catch back up in the other direction. So if you feel that the index will drop marginally but remain unsure , cover with a short and keep your long. If the trend is still on and it is not peaking and you feel that you have gone to far away from short , close the short. There is a lot of times when a particular index will swing when trying to find direction , that is the best time to apply such a method. Nothing is certain , so try to have fun with it and try mini contracts until you are confident that a trend is emerging than apply full contracts. You have to be hands on when you are doing such and after the LSE closes and B4 the exchanges close state side is good practice ground as it is less nerve racking and easier to spot the trend and practice the swing.. gl