We had a big down gap opening today. I liquidated all my medium term positions with significant loss. I am very upset by the big gaps of the market opening of all 3X ETFs, even though my whole portfolio looked OK in that turmoil (futures short was making big to offset the loss of my medium term 3X ETF long). After this bloody killing, I don't know if I still want to continue on posting my trades in real-time.
One of the reasons that I did not want to trade individual stock was to avoid the possible big gap after an ER day. So I picked ETFs for trading the medium term timeframe. Since I used to be a futures/commodity trader, I enjoyed more on highly leveraged trading. That was the reason that I picked 3X ETFs instead of regular ETFs. But now it looked like my decision was wrong! I have seen more and more huge and big gaps in 3X ETFs, and that gap problem occurs more often these days than before! The big gap would cause a position being exposed to some uncontrollably runaway risk.
What should I do? Should I simply trade futures index in the medium term timeframe to replace the stock trading? Futures index has its own advantage on this - its trading session is theoretically a continuous one, so the gap problem rarely occurs in futures index. Here is my decision for now ... Before we figure out a way to deal with the medium term timeframe trading, I'll stop trading nor posting any trade for medium term (i.e., the small troop in My Trade section). Please recommend a way to help me solve this problem:
How to avoid the big gap opening in medium term trading (while small gaps do not hurt)? Would it be better off to trade something else (e.g., option or individual stock) for the medium term timeframe? Since I feel good with the long term and short term trading, would it be better off to totally avoid the medium term timeframe?
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