Monday, March 17, 2014

My new favourite ETF pair

Natural gaz ETFs UGAZ and DGAZ are like two sibblings fighting it out each day with daily movements of 5% or more not uncommon. This creates a lot of volatility drag which means I don't even have to know which direction these ETFs are going to make money, I can just short them both. Who said trading isn't easy? But as always limited bet size is a must, after all one of them might win big over a period of time and that could make severe damage to the portfolio if the position is large. For now I have about 2.5% of portfolio on each of these.


No comments:

Post a Comment