long or short

[OutnumberedOutgunned]

can you go long or short over a longer time, rather than a day, and if so what does that mean? you are more exposed?

 

[Chorlton]

can you go long or short over a longer time, rather than a day, and if so what does that mean? you are more exposed?

Hi,

Here's my take on it....

If you apply the same appropriate Risk / Money Management rules to both these different approaches then:

1) Long Positions should have limitied risk and potentially unlimited rewards.
2) Short Positions will have limited rewards and potentially unlimited risk.

Consequently, I would personally trade the Short Positions within a shorter timeframe than that of Longs Positions.

Regards,

Chorlton

 

[mp6140]

can you go long or short over a longer time, rather than a day, and if so what does that mean? you are more exposed?

===============================================

yes -- both are standard trading practices.

while "exposure" is not a term i much figure on, the longer your trade is out there, naturally the more "exposed" it is to market machinations, solar eclipse and folks starting to square dance with it !

mp!

 

[arabianights]

Interesting thing discovered in the 19th century by a frog of some kind (and provable if you assume asset prices follow brownian motion) is that the movement of the price is proportional to the square root of time.

So if it could reasonably move 2 pennies in 4 days, then you can expect a movement of 4 pennies in 16 days... if you get me.

 

[fifty2aces]

I(and provable if you assume asset prices follow brownian motion)

That's a bit of a big assumption isn't it?

 

[arabianights]

That's a bit of a big assumption isn't it?

A pretty ******** assumption too if you ask me

But that's only if you want to "prove" it - it's something you can emperically observe as "about right" as well...

Guy's name was Jules Regnault apparently.