What can a mastermind do for you? Why should this be part of your trading practice? What are the qualities of a good mastermind? Trading can be a very lonely profession particularly with online trading through a deep discount broker. At the same time trading places tremendous psychological pressures on you to win or at […]
Tag: Buffett
20 year look back on SPY (the market)
on the monthly chart the 2 massive drawdowns are technically similar on a superficial level, but looking closely you will see that the previous massive drawdown tested the bottom several times before steaming back north. the fundamental economy also had not imploded in that one either whereas we are looking at a deconstruction of the […]
Interesting twist to prop up markets
Congress and President Bush signed legislation that suspends the rule requiring retirees over 70 ½ to take withdrawals (RMDs) from tax-deferred retirement accounts, such as traditional IRAs and 401(k)s. This suspension currently lasts for one year, 2009. The intention is to give retirement accounts time to rebound from the difficult economy/market conditions. Please note that you […]
Borrow more to get out of debt: all it lacks is an 800 number and an infomercial
In a sequence of CSPAN broadcasts, Washington insiders expressed their shock—Shock! at the state of the budget disaster in Congress. Senator Conrad, has suddenly discovered just how deep the debt hole that Congressional spending, aided and abetted by an unprincipled administration, has put our children in. Because its our children thathave inherited the mess these […]
Tactical trading: maxpain strategy in oil pays off within a week
closed our tactical trade in oil, using the 2x leveraged oil ETF (DXO). we bought at $2.20 with a .2 initial stop, after oil closed below $30/barrel, and closed the tactical portion of the trade today at $3.45. Thats a little over a 6R win in a week. here are some of the supporting slides […]
Next in line for the bailout, after $1T for the states, is steel
we continue to spend more and more tax money on companies that are making things we dont want to buy at their proce. But remember, its not your money, it’s the government’s money and all they have to do is just decide how you will spend it. And if you wont spend it, they will […]
Wisdom vs Instinct
As you will recall, a pair trade is a trade that goes long one side and short the other with the idea of capturing the difference in performance. Another way to frame my current favorite pair trade is “Wisdom” vs “Emotion”. It is my hypothesis that a species’ evolutionarily successful emotional responses are codified in […]
A Pair Trading Strategy refinement: Buffett vs the mob
A pair trade strategy refinement to consider to take advantage of long term market psychology which is known to persist despite evidence that the market is changing. I was thinking of a pair trade earlier today that would capture something like the mood of the mass market psychology in practice. It would pit the wisdom […]
What makes Buffett great: the ability to take disciplined action at moments of great stress
Trim Tabs reports an extraordinary panic selloff by the masses in September, driven by fear. Banks are collapsing left and right. The public is outraged by their ostrich-like elected leaders in the House and Senate and pressure the Congress into aborting a terribly framed corporate welfare/bailout bill. Market volatility, as measured by Average True range […]
A Bailout Alternative
Let investment banks go bankrupt, and their assets should be auctioned by the government as if they were people that had died intestate. Proceeds of the estate sale should go intot the general fund to be applied against the national debt The government should act as a caretaker to continue to receive current mortgage payments […]