Today's Ideas:

    IMPORTANT : Below is what we're looking at currently, but pay attention to our UPDATES on the side of each page for actual entry/exit times and prices. Refresh pages often! You will witness our winners AND losers; something that is rare in our business.    TO VERIFY ACTUAL PRICES AND TIMES, PLEASE CLICK ON  A TICKER ENTRY TO THE RIGHT.  ALL TRADES, WHEN THEY OCCURED, ARE VIEWABLE.  Whenever possible, we have included the ETF symbol for those who are not experienced trading futures, etc.

    Monday, September 22, 2008

    Actions speak louder than words

    I think I was 5 years old when I learned that actions speak louder than words. The lawmakers are making it so that anybody with a brain should back away from financial markets. A second lesson learned was to never fight a battle you cannot win. I simply refuse to participate, other than to protect everything important to me. It is my opinion that the most recent manipulations will ultimately fail, but will allow a small window for citizens to prepare for a very different world. Do not be fooled by the relative peace and calm over the next few weeks; it's just a temporary circuit breaker. Take inventory of what's really important to you, and act accordingly. Perhaps the next "support" will be to eliminate ALL sales of stock. Of course, this would drive stocks higher for a few days, until everybody realized that what they bought they will have to keep. I suspect that the shock lower might have been tempered for now, but that a very long, slow period of erosion in asset prices is just beginning.

    With the darkening mood, I can reflect on my recent trading in a positive light. We've discussed shorter hold times, as well as reduced position sizes, resulting from heightened volatility. Last week saw the DJIA swing 2,000 points from high to low, only to finish nearly unchanged. The point is that holding for even an entire week, was too long and too risky. Who would play this game? I can only say that I've taken inventory of what is most important to me, and I will defend it to the end. I am uninterested in "the solution", as the answers are created by the very clowns that smoked the system. I will be careful discussing specific ideas on this blog for I need to "tighten up" even more. Recall that every decision is a trade. Just because people's balance sheets will/are jeopardized does not imply there will be no happiness, but it will be found in different areas of life. I cannot emphasize enough how necessary it is to examine carefully what the next five years will bring your way. I often suggest using only information that you can clearly define and quantify, and this time is no different. The rules have changed forever, and not just for the financial system. Know yourself and draw your line in the sand.


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