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Honored Advisor

Our own Scott S...

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Honored Advisor

Re: Our own Scott S...

I saw that and the snip of Scott answered a nagging question I`ve had.  And that is, I can guess a report or the weather correctly and when it comes to fruition I think "Boy oh Boy it`s gonna be up the limit for a week now Smiley Very Happy   "    But instead it goes up a penny and closes down a nickel, I figure it must`ve been factored in the market. So, digruntled I sell the next day "before it goes down more"...But NO, right after I sell, it goes straight up a buck.

 

 

What Scott said is in a world market, not everyone is trading on the same fundamentals, so even guessing the weather or report right is no guarantee.

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Senior Advisor

Re: Our own Scott S...

You have it right.  It's not uncommon to be right on the fundamentals and right in the long run but have the timing be off so that one is hit with margin calls that test one's patience.

It seems to me that hedging for the long haul helps take the edge off such situations as you describe if one is at a zero position and the basis is moving with the board.

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