DUST is climbing again, which I was hoping for sinse I want to short it before it goes back down. The recent experiance with India and Indonesia ETFs has made me think about a plan for how I will accumulate short positions in DUST.
First I start with my expectations of how DUST will move. It could go lower at anytime from here but if it continues to climb I don't think it will go much higher than 40. (See previous posts on megaphone patterns and DUST for further analysis) Although I would want to get in right away to not miss out on any down move, a lot of money is made by getting the first entry late.
Heres my accumulation plan:
Price level, Allocation of portfolio
around 28-29, 6%
39, 12 %
I may adjust these as I go, especially the entry level, sinse I'm not a strict believer in trading according to predefined rules. If it reaches 40, and that's a big if I would be 36% of portfolio commited. Any rise after this I could still handle but I don't plan for accumulating as fast after 44 as that is not my expected scenario according to how I've read the chart.
Edit: As soon as I published this I got my first entry at 29. I'm very relieved to be in the trade sinse I am a big believer in it.