Hubert Senters here.
Let’s take a look at the bond markets. So there’s a couple of different strategies that you can use to hedge if you’re in a particular trade.
So in this example, I’m going to look at the 10 year note. So in the 10 year note, it’s obviously in a major downtrend, minor uptrend.
It’s probably going to work its way towards to the cloud. And then it will either eat through the cloud and go higher and I’ll get long or fail aroun the cloud and then I will start putting in a new lows which I’m already short.
So if you were short let’s pretend I was short about right in here because I think I am short right in there somewhere. That’s actually probably right in here.
So I am short right in here on the 10 year contract or on the 10 year note. As this price is going towards me, it’s eating in two my unrealized profit and loss.
It’s unrealized because I havent closed it out yet. If I close it out I would take a $900. So in this case scenario, what I’ll do is I’ll wait until it gets above the purple and then I can potentially get long the 10 year contract.
Now, you’re going how you’re going to get long if you’re short. I’m just going to use a different month.
So instead of me being currently right now I’m short the June contract which will expire in June. So what I can do is I can go get long the September contract and that will all set any potential bouncing price is going up that way.
Or if I wanted to I could use that to get short more at a higher price. I could also since I wasn’t short a 30 yet. I could short that thing so that’s why I did.
So there’s several different layers or levels that you can hedge a trade on so in this case scenario I also got long yesterday on the 10 year and the 30 year and then I flipped it out because I didn’t want to be long forever.
I just want a day trade. And then on a swing trade over here you can see I still have this swing trade in the 10 year and then I also initiated a new swing trade in the 30 year but in the September contract because I’m planning on holding it longer as long as I don’t get stopped out.
I’m going to be doing a special webinar tomorrow on this very market on how you can potentially make a $1,000 or more risking only $156.25.
The webinar is going to be Saturday, April 17th at 10AM. All you have to do is click this orange button here. First name, email address, mobile telephone number and I’ll remind you to show up to the webinar.
Good luck. Hope it helps. See you on the next video.
Hubert.
