Investment Journal / Decisions
Trimming a copper ETF — keep the deadline even below my purchase price?
- Decision
- The deadline comes first. I sell by the date I set (October 30), even on a day the price is below what I paid.
- Why
- Under the loss-position rule adopted the same day, copper's indicator (the gold-to-silver ratio) came out unfavorable. At decision time the ratio was higher than in late September, about three weeks earlier. The rule compares with three months earlier; this call looked at a shorter window.
- Expected outcome
- The sale is done before the deadline and copper's weight moves closer to its target.
- Options not taken
- Sell only on days above my purchase price; push the deadline if that never happens.
- Sell on the first day the price rises above my purchase price.
- Since the decision
- copper futures -2.8% (Oct 30)
below the decision-date close — an interim picture; whether it was right is judged on the review date