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VelocityShares 3x Inv Natural Gas ETN Message Board

  • billythart billythart Mar 14, 2014 8:15 AM Flag



    Here are just a few topics that NG investors look at before making their NG investing decisions:
    1. Rig production
    2. Nuclear output
    3. Hydro production
    4. Front month contract prices
    5. Forward month contract prices
    6. Imports from Canada
    7. United States exports
    8. Above average temperatures
    9. Below average temperatures
    10. Well head freeze offs
    11. Gas to coal switching
    12. Coal to gas switching
    13. NG replacing oil
    14. NG used in manufacturing
    15. NG inventory levels
    16. Shale production
    All of you get the drift at this point. Here's the problem with all this data after you have it swimming around in your head: it means almost nothing when trading NG positions. Trading NG is all about which way the trading trend is moving and of course we all use these trading tools that I mentioned to mentally ensure that we are making the correct trades. Trading NG is pure gambling (this is why I do it) and I'll give you a perfect example: February 5, 2014 UGAZ traded over $46 in the pre-market and in just five days later UGAZ traded for $23.21. We were in the heart of the coldest winter in thirty years and UGAZ sold off 50% in five days, was there any reasoning behind that sell off other than the fact was: THE TRADING TREND WAS DOWN FOR FIVE DAYS. Of course the pre-mentioned trading tools had nothing to do with such trading action since UGAZ returned to $39 in the pre-market about a week following. There are a lot of investors that trade by different reasoning such as: daily NG news, trading volume, charts, flip of the coin ect.ect. Many will disagree with this post but, you take the NG investor that has great knowledge of natural gas and all trading methods and put that investor up against a trend trader and see how they both do. I was talking to a retired CPA, he told me that doing taxes for market investors over many years led to the following conclusion: the good gamblers did better than the investors with all the facts. I like trading NG.

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