5 Minute Read

Morning Mailbag: Pre-Market expectations, hedging > natural and forced

February 13, 2015

By

Coach T takes a question from Christian L. on how to deal with pre-market expectations. Enjoy!

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis.  This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise.  Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products.  By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials.  In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

 

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

5 Replies to “Morning Mailbag: Pre-Market expectations, hedging > natural and forced”

  1. ken says:

    Tim, really great video! I’d love to hear a more detailed video about account balancing if you get the chance. Thanks so much

  2. Daniel Brodhead says:

    It says page cannot be loaded.

    1. Hi Daniel!

      I just clicked on the page, the tackle trading page and the video itself and they’re all functioning. Check your internet connection, reset your cookies or history and/or restart your computer and try it again.

      Cheers,

      Tim

  3. Christian Ljungbeck Christian Ljungbeck says:

    Thanks Tim! I appreciate you taking your time to answer all our questions.

    I get what you are saying, but I’m thinking that I will be one step behind. I mean, if I see the futures opening down one morning and my overall portfolio is more bullish, I will probably lose some money that day if I don’t do anything. Therefore it could be a smart idea to open a bearish trade; however the bearish move might only be for a day or two and in that case would you then exit your newly opened bearish trade? I’m just thinking that I will drown in commissions opening and closing trades for a day or two only.

  4. @ Christian – it depends on how strong the move is and what indicators you’re picking up on. If you don’t respond at all – you can find yourself on the wrong end of strong market moves (see last October). You have to take action somewhere. Some days – you’ll just manage the trades you have. But, some days you have to get in there and wrestle your overall account risk and try to keep it in line.

Leave a Reply

Chart Modal