Sep
25
2009

  What Could I Do About UNG?

I bought UNG at the end of the last "buy" signal, but didn't set my exit trigger at the time, and before I knew it it was on its way down again. I hadn't meant for this to be a buy-and-hold stock since it's extremely risky given the regulatory environment.

But another buy signal completed, so I hung on to it. I set a trailing stop to exit the trade if it fell 2% after rising above $11.88. It fired off today while I was downstairs entertaining my in-laws. Based on my technicals, I really would have preferred to stay in the position a little longer, but because it is risky I'd have to monitor it constantly. And I can't do that today, so it is what it is. I made a very slight bit of money on the trade, so it's still a happy ending-- it could have gone against me since I failed to set my stop the first time around. But had I been able to sit here and trade all day, I would've gotten out closer to $11.98 instead of $11.72. Or maybe not-- maybe I would've gotten greedy and not gotten out and wound up losing money in the end. It's hard to second-guess, which is one reason I like the program trades. It does take emotion and gambling out of the equation. I set a number, and stick to it.

Yeah, I need to think positive and focus on the fact that this trade wasn't a loss, despite the way I screwed it up when I first bought it. But since I was able to sneak away for a few minutes to check my portfolio (the rest of the family is watching cartoons with my nephews downstairs), I will double-check the rest of my triggers and see if they need to be adjusted given the recent market movements.