Natural Gas

[lithium]

Thanks 802! I plan to hold till end of Oct.

[lithium]

Double luck also not enough!:D

Futures at $4.43, need to stop loss tonight..... lose a few% of capital....... next support $4.......... But if rebound above $4.5........ I will go back in as well.......

What do you guys do after stop loss? Any good strategy?

[kennynah]

after cut loss...i go bang wall.....hahahaha...

but seriously...i re-evaluate my game plan before stepping in again... see if original view is still valid...else, may have to switch opinion altogether...

[lithium]

Ken,

You don't often cut loss? That means you are very accurate on your trade most of the time? Can share your entry strategies?

Let's say original view is still valid............. what will be your next move?

[kennynah]

lithium...

please... of cos i cut loss often enough... there were the earlier times that i didnt cut out that resulted in severe damage....

well if original view is maintained, then look for another re-entry point...

[iam802]

lithium,

What's the symbol for Natural Gas that you are trading?

I just want to do a check on the chart reading.

Thanks

[lithium]

HNU in Toronto. This one is a double levaraged ETF so I don't think TA is accurate on it.

UNG in Amex. This one should be better for TA. But still distorted by the contango effect.

TA should be done with Futures...... and convert to price of these ETF. That's what I'm doing.

[helios]

Natural Gas : Trading mode. Not cheap, not expensive at the moment.

60% in trading mode?

[lithium]

Erm........ can be 100% using margin..... but won't do that after end of Oct.

[kennynah]

Nat Gas has a seasonal pattern of peaks and troughs... you are right that Nat Gas usually peaks anytime from Jul - Nov... some years, the peak occurs in Aug and come Sept, prices started crumbling. In other years, prices peak in Sept or even Oct... there's certainly no surety as to when exactly Nat Gas will peak each and every year.
But what is certain is that when the prices turn south, it almost always does so quite swiftly. This is where the risks lies... in especially when the delta for each point movement of Nat Gas is rather steep and the leverage of trading Nat Gas futures can be equally high too. When trading futures directly, % gains can very rewarding but so can losses be beyond the posted margin. This of cos is due to the nature of leverage trading.

Good luck