Keeping Cash Levels Nice and High

Today is not a get-up-and-go day. I was certainly met with quite a few stops this morning -- and, unfortunately, I think that will be the norm for the first half of the year. In this market, gap-downs hurt you more than gap-ups if you go home long, and vice versa on the short side.

This all has me looking much more toward a high daily cash level in my trading account. This is the type of day when I am likely to only use 10% to 25% of my account in terms of how much room my positions comprise. On the strong trend days, and just green days in general, that ratio has been much closer to 75%, and 50% at a minimum. It isn't that I don't like to play the downside but, rather, that I haven't done a lot of late-night work looking for short-side plays. Plus, I've been active closing out recent positions. I'd like to say I've closed everything for a profit, but we're better friends than that....233 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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