Thursday, August 29, 2013

Plans for DUST

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%
33, 6%
36, 12%
39, 12 %
44, 12%
50, 6%

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.

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