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TranceAddict Investors Club @ Marketocracy (pg. 187)
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| Comrade Stalin |
| Nice. My models say Monday is going to be a down day. So I entered an order for 500 shares of VXX @ limit $11.14 with a stop loss at $10.92. Let's see how I do. |
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| Capitalizt |
| I bought some SLV puts at the close, betting on a profit-taking pullback after the huge rally it's had over the past month. Let's see how I do. :) |
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| Comrade Stalin |
| Sounds like a hunch to me. Risky stuff. Good luck. |
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| Capitalizt |
| quote: | Originally posted by Comrade Stalin
Sounds like a hunch to me. Risky stuff. Good luck. |
Took a loss and got out quick this morning.. It's down another 20% since I sold..whew.
Silver is going crazy.:eek: |
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| Comrade Stalin |
| quote: | Originally posted by Capitalizt
Took a loss and got out quick this morning.. It's down another 20% since I sold..whew.
Silver is going crazy.:eek: |
Haha, see? I have been wiped out before, 80%, buying call options. So I know first hand lol.
Check this trade out I'm doing tomorrow.
BUY 120 shares of SQQQ at limit $33.31. Stop at $32.69. If the trade does not execute, let it go. If the trade gets stopped out, let it go. If the trade has a profit when the market closes, SELL 120 shares of SQQQ at limit of the day's closing price. If SQQQ gaps down against us the next day (Wednesday), then we cancel the sell order, and enter a SELL market order, to get whatever price we can get, and secure as much of our profit as we can.
Follow those rules, and you'll be good. Maximize gains, minimize losses. Obviously, the amount of shares you buy is totally up to you. |
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| Comrade Stalin |
| Also, I was right about VXX, and the market falling today. But my trade didn't execute because VXX gapped much higher above my limit price to buy (Friday's closing price). So I'm kind of pissed off about being right but not getting the trade. |
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| Comrade Stalin |
| quote: | Originally posted by Comrade Stalin
Haha, see? I have been wiped out before, 80%, buying call options. So I know first hand lol.
Check this trade out I'm doing tomorrow.
BUY 120 shares of SQQQ at limit $33.31. Stop at $32.69. If the trade does not execute, let it go. If the trade gets stopped out, let it go. If the trade has a profit when the market closes, SELL 120 shares of SQQQ at limit of the day's closing price. If SQQQ gaps down against us the next day (Wednesday), then we cancel the sell order, and enter a SELL market order, to get whatever price we can get, and secure as much of our profit as we can.
Follow those rules, and you'll be good. Maximize gains, minimize losses. Obviously, the amount of shares you buy is totally up to you. |
Ended up buying 320 shares at $33.02 and sold at $33.87 pocketing a nice 2.56% or $264.90. |
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| atbell |
| quote: | Originally posted by Shakka
One of the best investors I know of. I think Einhorn is the real "next" Warren Buffett, with the caveat that Einhorn is a value investor who is willing to go short.
http://www.charlierose.com/view/interview/11333 |
I'd look at how Soros made his cash these days. I think his bet against the UK pound years ago was what made him most of his money but if I remember right he's a big perponent of identifying massive imbalances and then investing accordingly.
The reason I see this as being a good strategy is that there seem to be some pretty huge imbalances in the global economy right now. For example, the US$ is high relative to other currencies, and seems to be so based on a rather large imbalance. How likely is it that the US$ will be worth more in 5 years than it is now?
With big imbalances the direction of correction is almost known, it's just the magnituded which is in question. So the result of a play is winning some or winning more.
As much as I'm negative on the 3 to 5 to 10 year prospects for US$ I'm warry of the warning my international business professor gave the class years ago. He pointed out that currency is one of the most difficult things to predict and that he only puts little amounts, a thousand here or there, in currency investing. This is comming from a guy who studies it all day. So maybe buying 5 year Brazilian bonds isn't a good idea ... but it's tempting. They have higher intrest rates and the currency is likely to keep going up. |
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| Comrade Stalin |
Hey shakka, do you adhere to the 2% maximum risk, to a day trade rule? Meaning, if you have a $100,000 account, that means you can only risk $2,000 on any one trade. If your stop loss is 1 point, then dividing 2000 by 1 equals how many shares you should buy.
Any tips? I find I am risking way too much on each day trade that I do. |
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| Shakka |
| quote: | Originally posted by Comrade Stalin
Hey shakka, do you adhere to the 2% maximum risk, to a day trade rule? Meaning, if you have a $100,000 account, that means you can only risk $2,000 on any one trade. If your stop loss is 1 point, then dividing 2000 by 1 equals how many shares you should buy.
Any tips? I find I am risking way too much on each day trade that I do. |
I'm not familiar with that concept. Usually we won't take a position that is larger than 2% of the total portfolio (however, we don't day trade so I can't say how what you're suggesting would apply). |
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| Comrade Stalin |
| So you must be in at least 25 different positions no? |
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