Hubert Senters here.
Let’s take a look at the bonds market. So as you can see my cash in this trade is shranking. Don’t cry for me I hedge against this potential loss of unrealized potential gains.
It’s a fancy way of saying I knew the market was going to bouncing and knows a strong word. I didn’t know. Pretty much a guess because I look at my indicator and it’s telling me that this market is going to bounce.
I have three options. I could do nothing and I could let this bounce that we’re experiencing hid in to my P&L then when it stops it rolls back down I’ll probably make more money. That’s option 1.
I could just do nothing. Option 2, I could liquidate the trade lock in the profits and then re-short it at a higher area. I don’t like that because I’ll lose my potential entry on my regional trade.
And then option number 3 is I can hedge so in other words instead of trading the June contract which I’m trading up here in the TYM 21. I jump into the September contract which is a little thinner. I give you that. It’s granted.
But this one I’m long and short in the same contract but a different month. So think about it like this you’re in a car. The same car but you’re instead being in a June car you’re in a September car. Same basic different.
So all I did is I got long and as it went higher I lock in $265 for the day so as I gave up $500 or $600 I actually made $265 and gains and lock those in.
And then when this market rolls back over that’s going to be an actual $265 added to my account that I’m trading and then as this rolls over that gets out on top of that because it’s all the same trading account.
So that’s how you can hedge and be long and short in the same contract but different contract months.
I’m going to be doing a special live webinar on the same material but I’ve been doing webinars on the last two or three times to make sure everybody understands before I go on a long weekend with my wife to the beach.
And teach you how. I just did what I did. It’s how you can potentially make a $1,000 or more by only risking $156.25.
Webinar is going to be Wednesday, April 7th at 8PM EST. And we’re already started some of the trades.
And you can see the first trade we already went ahead in $265. Was it a thousand? No. It was an intraday trade. Those tend do not turn in $2000 winners. They’re usually smaller because they’re intraday trades.
Good luck. Hope it helps. I’m going to HYPERLINK you to this. If you want me to send you a text message or a voice memo before the webinar. Put in your phone here.
And I will send you a couple of messages before the webinar just to remind you because you’re probably just like me you sign up for stuff and you forget you sign up for stuff and this is just to remind you.
Good luck. Hope it helps. See you on the next video.
Hubert.
