Thursday, January 31, 2008

Dumped the Hedge

Too late, but hopefully it was the correct move. Market still seems to be rallying at this point. I should still have a positive trading month for a change at this point.


Bad move - I panicked right at the top...


Really bad move. One reason I abandoned the hedge was that my model stop would have been hit at that point. But the market ended down on the day so I lost... I was up $1600 or so for the month yesterday. Today I'm just short of $600. If I'm lucky I'll have a positive trading month. At the least I beat the market massively :)

I think I'm going to revise the way I compute trading results in future (and redo the results for the last year and a half so all the data is consistent. At the moment it is pretty arbitrary what I am considering as being in the trading results and what is in the investment results. The plan is to include all exchange listed positions held for less than a year in the trading results. That means that there will be revisions to trading results when positions end up being held for more than a year. But this will produce results (including realized and unrealized profit) that are consistent with my trading cash flow results. I'll report the results with and without net interest.

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