Q&A by Don Bright
This month Rob Friesen will again be writing Don Bright’s column.
WHAT’S THE CRUTCH?
This month we’ll discuss a lesser-known strategy that is used by discretionary traders who like to employ more size per trade with specific entry criteria and having a peer stock to lean on. Professionals in our industry refer to this strategy as “crutch trading.”
The crutch is the opportunity to hedge, but not the requirement to do so. It begins with a single directional trade that is long or short. It could also be a basket of stocks tied together with a particular theme...