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Harley, my compliments for your candidness on reporting
your trading activities. I've been there, done those, and still
get surprised by the market in the short term.
Being fast to get out, taking small losses and small profits,
is the mark of a trader preserving his capital.
Recent experience in the market and selected readings in
the business press allude to another dimension to volatility,
- velocity of change. It seems that the market is quicker to
jump down or up more than usual. Analagous to a voltage
meter trying to keep up with 120 cycles/sec instead of the usual
60 cycles/sec.
Have you thought of giving yourself a rest and betting on both
sides of a trade? In options we call it a straddle; same strike
price and expiration date for both a put and a call. Then if the
market lurches in one direction (up) or the other you may
make a profit. And if the market lurches more quickly, in
both directions, you might make more.
Not so easy to execute as it sounds, though.
Regards,
Stan Rubenstein
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> From: Harley Meyer <meyer@xxxxxxxxxxx>
> To: Metastock list <metastock-list@xxxxxxxxxxxxx>
> Cc: Alan Kwong <alankwong@xxxxxxxx>; Joe Frabosilio <joe6964@xxxxxxxx>
> Subject: NWAC, MU & AMAT
> Date: Friday, September 25, 1998 4:06 PM
>
> NWAC - I covered all 150 shares for a small gain of $123. I also covered
> it because I needed to raise some cash for the draw down I am suffering.
>
> MU - Was up almost 3 points today but as I type with 5 minutes before
> the market close the DJIA has some body running out the door. Which has
> brought MU down to 2 1/4 points up. Some consolation.
>
> AMAT - I took another position of 100 shares short at 26 1/8. Currently
> it is up 1 1/4 at 26 3/4. This extra position brought my account down
> too low. So that is why I took the small profit on NWAC. I suspect that
> I would see 26 1/8 by next week. So I figured I would take the profits
> instead of the loss. Draw down I can live with. As long as they are not
> too bad.
>
> All and all my timing this week was poor, in fact way off. But at least
> this week I am not as tired as I was the week before.
>
> Harley
>
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