We are down 6%.
The mistake I made was a simple one; I set stops too close.
A stop is a safety net.
If a share price goes the wrong way, then you can set where you say ‘that’s it, I’m out’. This stop does not protect you, however, from a rapidly moving share price. A guaranteed stop is needed. But that’s another story.
Without getting into technical detail, I have learnt a lesson on stop setting. The second time I have learnt this lesson, so hopefully this time it sticks.
The first time was in February when the market made an unexpected massive turn downwards. My stops were, in my opinion, too close as I stopped out over several trades only for the market to reverse and carry on nicely in my chosen direction, but without me!
A similar thing happened in early August. My stops are now more full but still maintaining not more than 1.5% risk in any one share. I have already seen the benefit of this recently.
We are 6% down. However, that does not include shares that are currently active. We are short at the moment with about 45 separate trades. That means all our trades are for share values to go down. Most of these trades are in credit or moving that way.
Trading and logging this fund, together with my funds, has been more comfortable than I anticipated.