Lessons from Today's $450 dollar BOIL Loss, & plans for tomorrow's trades
Lessons from Today's $450 dollar BOIL Loss Today was a big loss for me in Henry Hub Natural gas trading. I started the day holding KOLD (Inverse Leveraged Natural Gas ETF) but I thought I identified the Natural Gas price low at 10:32am and sold my KOLD at 58.20. I then purchased 800 shares of BOIL soon after, expecting that the price would rocket up. Instead, the price crashed and instead of selling after a $100 loss, I held until I was negative $450 dollars on the day. I think the lesson here is that I need to sell earlier when I am wrong about the price. No more trying to predict a bounce. After I sold my BOIL at a huge loss, I decided to short WTI Crude oil since I believe that is about to fall in price. When looking at the monthly chart, there seems to be a wave-like pattern with an up-trend that has been going on since December. We seem to be headed down toward the trough-- or that is my prediction at least. On this prediction, I am holding 100 shares ($2,411) of SCO ETF. whic...