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It appears that money mgmt rules are not in place or not important for
certain traders. Preservation of trading capital is essential for longevity.
Thanks,
Marshall M. Liu
Sr. Systems Analyst
(818) 549-6269
marshall.liu@xxxxxxxxxxxxx
> "Well for one you should never cover a short on a run up."
>
> Gee, Harley, I got really "screwed" in corn today. I shorted a couple of
> weeks ago and have had a little profit in it until yesterday. The USDA
> released a really bearish report yesterday and the market started on the
> downside after the opening. I had a few contracts and my "closest
> friends"
> had some also. We were all going to get rich on this one. I had about
> an
> eight cent profit for a while yesterday. Finally, today, I got stopped
> out
> two cents above my entry point (above the fib retacement and downtrending
> line) and ten cents above yesterdays low. I need for you to explain a
> better way to protect myself from the conspirators at Cargill (those
> bastards bought out Continental yesterday and I'm sure they decided to
> specifically go after my corn stops). In the future, should I let my
> losses run in a short position? I was in a similar position a couple of
> weeks ago when I was short the yen. I was in a "short" position and I
> kept
> moving the stop down and the market started to "run" up and I got stopped
> out with a $1,200 profit. Maybe I should of stuck around. Remember you
> say:
>
> "Well for one you should never cover a short on a run up."
>
> If I would of taken your advice, I would of only been out of pocket an
> $13,000 a contract. But hey, the yen's coming back down and who
> knows...one day it might even come back down to the level I got stopped
> out
> at.
>
> Harley, you seemed mystified why Rick would take a shot at your postings.
> I can't speak for Rick, but I think a lot of what you say is very
> dangerous.
>
> Steve Karnish
> CCT/CTA
> ----------
> > From: Harley Meyer <meyer@xxxxxxxxxxx>
> > To: Metastock list <metastock-list@xxxxxxxxxxxxx>
> > Subject: NWAC, KEA, AMAT
> > Date: Wednesday, November 11, 1998 12:40 PM
> >
> > It looks like I have a few more minutes. Rick had suggested that I cover
> > these losses and move on. After taking a break over the weekend, I have
> > decided that this is not the time to be covering any of these shorts.
> > Well for one you should never cover a short on a run up. If it is going
> > to be a loss then cover it while the stock is taking a breather. Also
> > the market is due for a correction, so it doesn't make sense to cover
> > any of these until a correction is over with. I also believe that we are
> > not going to get a rate cut on the 17th of November. This will also drag
> > on the market a little. So in a nutshell now is not the time to cover.
> >
> > As far as AMAT there is a pretty good stochastic divergence and past
> > experience tells me that the stochastic eventually wins. Also AMAT comes
> > out with earnings around the 17th or the 20th of November. So it is
> > worth waiting at least until then. to make any decision.
> >
> > KEA is a little bit more bothersome to me because they are fundamentally
> > a better company than NWAC and AMAT.
> >
> > NWAC I had explained earlier.
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