gabriel-2 asked 7 years ago
Good Morning Patrick,
Let me introduce myself at first, I am Gabriel Aguilera a Mining engineer from Santiago, Chile. I like to manage my own financial assets, until now under the value investment approach.
But after reading the William O’Neil book (“How to make money in the stock market”) the “trend following” approach really made sense on me.
I have read several books about a more “technical analysis” approach (e.g. Steve Burns’ “Moving Averages” and “New trader/Rich Trader”). I already made my first trades under my new approach (e.g. $MSFT at recent breakout).
I would like to ask you a question that a trader could answer based on previous market boom/bust cycles.
- Besides the maximum 8% stop loss recommended by William O’Neil, according to your experience, Do you recommend another protection as a hedge? E.g. buying some S&P500 puts or negative correlation assets as treasuries or GLD, taking into account that in the last financial crisis, GLD didn´t keep it negative correlation. Or maybe according to your experience do you prefer to use general market signals to raise cash before market downturns?
Owen
