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In a message dated 1/27/00 7:55:38 PM Eastern Standard Time,
dennis@xxxxxxxxxx writes:
<< Here's a 5-minute chart of the SP futures during the 1987 crash. The
magenta lines are the current CME limit percantages although they
weren't in place in 1987. On Black Monday, there were a couple of
chances to bail with only about a 5% loss from Friday's close and you
could have gotten out most of the morning with less than a 10% loss.
But, if you waited too long, you needed to be capitalized well enough to
wait for the the retraces that happened over the next 2 days. If you
were trading more than about 3:1 leverage and didn't bail early, you
were dead before the first day was over. Even 3:1 would have taken you
out if you hadn't bailed by Tuesday morning. 2:1 would have given you
the option to hang in there.
--
Dennis >>
Hello
this is why when i position trade 4 SP 4 ND 4 DJ and 4 nyfe
i sell 16 March calls that are 100 SP points above my buy stop
and use the credit to buy 16 puts that are only 25 points under my
original buy
this is how one can sleep good at night
and yes for every 100 SP points i only collect 80 points
(this is the cost of disaster insurance)
Best regards,
Ben
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