DISCLAIMER: THERE IS A POSSIBILITY THAT I COULD BE WRONG.

Minneapolis Grain Exchange seats are cheap. Everyone should buy one...and then buy one for a friend.

Thursday, January 27, 2011

The Opposite of Pyramiding

While trend-followers often add to winning positions, relative-value traders usually scale-in and scale-out. I am gradually exiting my long MGEX/short CBOT position. It's great to have gains, but the market seems to be getting more volatile and smaller positions are more appropriate-- in addition to the prospect that MGEX is more "fully valued" at these levels.

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