Thread: Pairs Trading

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  1. 10-28-2016, #1
    apovzedVidly
    Guest

    Default Pairs Trading

    I wasnt trading when September 11th 2001 happened. And im sorry to bring it up as it may be a sensitive subject to some.

    I am a swing trader and its crossed my mind when i go out during a trading day that if some kind of terrorist activity occured, what would i need to do to keep my losses small.

    My question is this. Say your hold a $10,000 long stock in the QQQ or DIA position and the news comes out of a terrorst attack on a large scale similar to that mentioned above. (Touch wood).

    What the hell do u do? if u have a stop loss its likley to hit it and sell the stock. but how would u guys view a situation like this
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  2. 10-31-2016, #2
    aqecaen
    Join Date Jun 2014
    Location Belgium
    Posts 0

    Default

    Look on the bright side.....if you're long in the market and they catch Bin Laden, you're laughing.......

    If something contrary to your position, long or short, happens; you just have to hope that your stop-loss is tight and gets filled promptly (which is in doubt if the market 'spikes' in either direction... )

    Regards

    edit - and if your position is 'in the money' use a trailing-stop to protect profits.
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  3. 11-01-2016, #3
    ariuqloqo
    Join Date Jul 2014
    Posts 0

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    you have a fair point on that. but like the capture of sadam. the market rallied in the morrning then closed lower.

    A terror attack is likely to have more of a long term effect on price right?
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  4. 11-02-2016, #4
    Alfredokivy
    Join Date Dec 2014
    Posts 0

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    Read up on pairs trading that has been talked extensively on this site by Grey1. If you are able to do this then market direction becomes irrelevant.
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  5. 11-02-2016, #5
    AlekseyPlupt
    Guest

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    "what would i need to do to keep my losses small."
    Obey your rules - it doesn't matter what the cause is when your stop is hit :-)
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