Posts filed under “Trading”

Stopped Out

Stopped out
3/8/2006 11:36 AM EST

I just returned to the office, to discover those recent index purchases were (in part) stopped out.

My trader tells me I was "early;" I consider that a euphemism for wrong.

I will look to redeploy when the set up gets better: A little more oversold, and closer to the bottom of the channel.

It would be too ironic if the most Bearish guy on the RM site was long when the bottom finally dropped out;


Position: long partial positon SPY


UPDATE: Martch 8, 2006 2:35pm

So even if I am becoming a contrary indicator, the discipline must trump the conviction. The timing was wrong, and a partial sale was part of the original plan, and so half the SPX postion was sold.

When I was first learning  to trade, we called that "Throwing a Virgin into the Volcano" — a partial sale is a sacrifice to the trading Gods . . .

Category: Trading

Chart of the Week: Risk Appetite

Category: Investing, Psychology, Trading

Toe in the Water

Category: Trading

New Column up at Real Money (03/03/06)

Category: Trading

Why the Short Term Upside Bias?

Category: Investing, Technical Analysis, Trading

The Backward Business of Short Selling

If you haven’t already, I strongly admonish you to go read Jesse Eisinger’s column today:

It’s a Tough Job, So Why Do They Do It?  The Backward Business of Short Selling

Here’s the money quote:

"The shorting life is nasty and brutish. It’s a wonder anyone does
it at all.

Shorts make a bet that a stock will sink, and nobody else wants
that: Not company executives, employees, investment banks nor most investors.
That’s why most manipulation is on the other side; fewer people object when
share prices are being pumped up. For most on Wall Street, the debate is whether
shorts are anti-American or merely un-American.

Yet in all the paranoia about evil short-sellers badmouthing
companies, what is lost is how agonizingly difficult their business is. They
borrow stock and sell it, hoping to replace the borrowed shares with cheaper
ones bought later so they can pocket the price difference as profit. It’s a
chronologically backward version of the typical long trade: sell high and then
buy low."

Go forth and read . . .



It’s a Tough Job, So Why Do They Do It?
The Backward Business of Short

Jesse Eisinger
WSJ, March 1, 2006; Page C1


UPDATE March 2, 2006 10:32am: 

See below for more text


Read More

Category: Data Analysis, Financial Press, Trading

Get Darwinian on Your Portfolio!

Category: Economy, Investing, Markets, Technical Analysis, Trading

Covering the Gold Short

Category: Commodities, Trading

Top Ticking Real Estate is Different Than Stocks

Category: Investing, Markets, Psychology, Real Estate, Trading

Buy Volatility

Category: Markets, Psychology, Trading