I've had good luck with the ETF on natural gas, UNG, lately. I came into the day long UNG, and I sold it at a profit shortly after the open.
However, I learned a painful mistake today that I will avoid repeating. After I sold, UNG continued strong, so I re-entered the position. I normally pay close attention to the events of the day, but in all the excitement of this morning's rally, I didn't notice that at 7:30 my time, a natural gas report was coming out.
It did, and the market ever-so-briefly ripped down, took out my stop, and continued its upward climbing. My profits from the earlier position were gone, and then some. I wound up buying UNG (yet again) later in the day, and I closed the day with a profitable UNG position.
I am a big believer in stops, but it's apparent to me that it's unwise to have relatively tight stops in place during these reports. The dip down lasted only moments, but that was all it took to rip me off. Learn from my error.
