I am more than 30% down on UGAZ. Should I hold hoping to reduce the loss?
dtuskey
⋅
@hdoone, I usually do not hold positions overnight when trading natural gas as it can be unpredictable in the direction from day to day. However, based on the chart and technical analysis I believe there is a short term (1-2 day) move upward. The overall trend for natural gas is in a decline and therefore it is risky to trade against the trend (this is known as scalping). Usually, when you scalp a position it is to take advantage of the short term consolidation of the longer-term trend. You should not make any decisions based on my opinion and should make sure to do some solid du-diligence of your own before buying or selling a position. However, if I was you I would wait to see how it opens next week. If it continues up I would look to cut losses near the top of the trend line. If it reverses and goes down I also think you need to cut losses because of the overall downtrend. I hope this helps.
Protect-Your-Capital
⋅
@dtuskey, I have an analysis that I have posted, UGAZ seems to be in a descending triangle.
hdoone
⋅
@dtuskey, If UGAZ goes down more then maybe I should buy DGAZ to compensate loses.