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 MarketTrak Question/Comment Message


Posted By: Mike2   Date: Tue Jun 2, 2009

Title: Stops For 2X Symbols

Message:
  Rich-
  Your site currently recommends using a 5% stop. However, the site is silent with respect to various symbols such as SDS, DXD, etc. which are ETF's that typically move up or down at twice (2X) the rate of the S&P, Dow or NASDAQ. When using your neural net to trade 2X symbols, the stop price should be 10%. If you agree, is there a way that you can prominently show this information on your website so that clients don't get confused and trade 2X symbols with just a 5% stop?

Response:
  Trading the Ultra shares carries extra risk and I do not recommend them for the average investor. The stop value I show on the forecast page is for the purpose of computing a return from the model and is not necessarily a recommendation for you to use. You should always set stops when entering a position. The value of the stop that you set will depend on your personal adversity to risk and on your financial situation.

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