iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
20,414 Blog Posts

Year End Review: 2011 Sucked

There is so much to talk about when reflecting on the bullshit that was 2011. For me, it was incredibly hard to make “high percentage” trades. It was a year that surprised me, as the unexpected and surreal replaced the normal, easy trades. Without a doubt, if you weren’t nimble, you lost a tremendous amount of money.

Because of the extreme volatility, I suspended my options account, since it proved to be an exercise in futility. The very essence of momentum was disrespected over and over again by rumors and rumors of rumors, purported by viagra addled bureaucrats dressed in ugly suits–hellbent on interfering in capital markets.

Following one monster year after another, from 2005-2010, I will be lucky to close out 2011 with a +10% gain. However, if there is one thing I did exceedingly well this year it was controlling losses. I’ve had my MOTR boats and unlucky endeavors in VXX and certain nefarious dealings with Chinese burritos. But my yearly range has remained tight, between -5% to +15%. At the very depth of 2011, I was off by just 8%. I held the course and successfully navigated my way back to profitability. But the cost was great, purely from a quality of life point of view.

Like many of you, the volatility emanating out of Europe has led to constant uneasiness, sleepless nights, vacations that entailed 10 hour work days, and a perpetual state of mania that has resulted in numerous trading mishaps. There has been no clear direction or thesis to fall back on. A few months ago I endeavored to park cash in food stocks and laid the ground work for capital infusions into 10 companies. Luckily I never mustered up the confidence to invest because two of those stocks were TEA and DMND, both horrendous losers.

Once again, we had to deal with the typical Wall Street corruption that we’ve all grown to expect and love, which of course goes entirely unpunished. Jon Corzine and his fucking beard lost a bunch of money, fucking MF Global and its clients. As usual, Congress will call hearings and promise to “investigate.” But they will never prosecute “one of their own.”

We learned that our beloved elected officials have been profiting from insider trading, which is legal for them. This is the Roman Senate and no one seems to give a shit. There is one group of degenerate animals who got mad in 2011 and that was the Occupy Wall Street crowd. But what was their demand? These filthy idiots want us to give the corrupt government even more power. Ha! In other words, they feel the way to help America is to give more money to the cocksuckers who conduct themselves with the most undistinguished dishonor the American people have ever seen, the same people who gladly sellout the American worker and expedite the greatest transfer of wealth, from west to east, the world has ever seen. They want to do this by taking my money and literally giving it to union chiefs who in turn will make political donations to the democratic party. No thank you and fuck you very much.

This was also the year the proverbial chickens came home to roost. All of the excess and waste that led to giant European debt loads was firmly rejected in the debt markets this year. As a result, the continent teeters on financial disaster. I suspect, the chickens will die in 2012, leading to a finale of sorts, a conclusion if you will, to the drama we see playing out here on a daily basis.

There are days when I question whether I want to be in this business. In so many ways, I don’t need this shit. But I love it and would not know what to do with myself without it. The truth is, as many of you know, it’s real easy to hate something when you suck at it. Well, by my standards, in 2011, I sucked. For all of the research and long hours that I dedicate to this trade, I expect to outperform by grotesque proportions. All of my big thesis trades flopped, with exception to one sweet run in the refiners.

I can’t keep dodging bullets like this– because eventually one is going to hit me between the eyes.

Here I am at 11pm, penning this article, worrying about Italian 10 year yields, reflecting on my failures. I have a great book waiting to be read in the bedroom and a hot cup of Earl Grey tea right next to it. In many respects, I’ve made my bed already. Now I’m gonna go lie in it.

http://www.youtube.com/watch?v=3vVS3wE5KVg&feature=related

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55 comments

  1. muktukchuck

    I’ve read this while enjoying a 50yr old C. Montefaud — both are considerable enerprises.

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  2. DipChit

    And just think there’s always next year….The definition of insanity is doing the same things over again and expecting a different result…just saying

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    • isaretard

      I just read an article in Bloomberg with that exact quote. I heard it yesterday. I hear it everyday. I long for the day that I won’t hear or read that line from another cocksucker lacking originality.
      When I hear or read it tomorrow, I expect the same result…cocksucker.
      Is good that I wasn’t a character in Atlas Shrugged. Everytime someone asked me “Who is John Galt”, I would have called them a cocksucker which would have ruined a great novel…just sayin.

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  3. 308

    10%, while low by your set standards, is quite an outperformance Fly.. seriously. fuck, look at the Paulson’s and Gartman’s of the world.. What a 365 day whirlwind, only a few days left and then we’ll be hearing “As goes January, so goes the year” all over again.. man time flies..

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  4. The Big Spooky

    2012 opens with all these guys hiding in MCD at 19x NFY earnings (and other outrageous “defensive” stocks) getting gangraped by silverbacks.

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  5. Pietro_F

    You can’t always have your best year. To 2012.

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  6. Half Blood Pope

    You are transparent as always Professor Fly. I have taken losses off the chin this year and closed up shop. I have decided it is time for me to endure and have put a deposit on a new construction with the wifey. Filet mingnon will always hold its value. It has been humbling and I fully respect the stress you deal with on a daily basis. European death charges lie about like stop signs in the suburbs.
    Thank you for the entertaining education as always. Happy Christmas.

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  7. Taco

    Fly,

    Try Blackmill…
    http://www.youtube.com/watch?v=9kAbvm0gn7o&feature=relmfu

    and also Current Value…
    http://www.youtube.com/watch?v=RhDL3gs8WO8

    Next year you will kick ass. Sometimes a thesis becomes an anchor around the neck. Kind of like an unwanted child.

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  8. chuck bennett

    As much as Kyle Bass sounds 100% correct. It all makes too much sense.

    Bottom line, this is a crazy world. Once you think you have it figured out… then OBAMA (Bam) you are wrong. unless your talking about, NYHC or AMAC of course.

    regards
    chuck

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  9. chivo

    which book are you reading?

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  10. jt

    Nice post. But what I want to know is… Is there an imposter fly and does he lose a lot?

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  11. Marc David

    Bring back the AssHat of the Year Award as 2011 has a line up like never before.

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  12. chuck bennett

    thats NUHC of course.

    earl gray keeps me up at night.

    regards
    chuck

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  13. leo v

    Do you wish you shorted more?

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  14. JTU

    Fly, if you end the year with a 10% gain, it is nothing to sneeze at. That is probably better than the top 1% of all money managers. Congratulations on your successful trading maneuverability skills!
    I am embarassed to admit that I am down 18% for the year. Just over a month ago, I was only down 6.5%. This last month has been brutal! I have been continually buying all the way down but I am now near the end of my cash reserves. I need the bleeding to stop!
    Please Santa, come my way!

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  15. Sierra water

    Fuck reading tonight.. Chris Renea hit it out if the park tonight. X Factor bitchez.. Lol.

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  16. Mad_Scientist

    Personally I’ve become sick of theses. In just a short time trading, I have heard so many from so many different sides and in practically all sectors, and usually they are meaningless. And even as the trades go egregiously against the thesis, the adherents still proclaim it from the rooftops. If I learned anything this year, it’s that timing is everything.

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  17. Chris

    Great post !!

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  18. D

    Wait have you ever revealed your identity? You, Tyler Durden, and Adam Smith are my favorite anonymous finance/market guys ever. Shit I probably watched you on CNBC and proceeded to make fun of you. Best of luck to you in 2012!

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  19. Dustin Gedney

    Im a 25 year old up in comer options trader who hasn’t made it yet, so I really can’t speak on too much. But I’ve realized how dangerous this game can be. It can blind you then slowly swallow you up whole. It sounds like you have more than enough to walk away with or at-least live a better life than most. Take the time to sit back, smell the roses, and read that book amigo.

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  20. Susie Q

    For me, agility and direction neutrality go hand-in-hand. Being one-sided (either side) in a schizo market can cost dearly.

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  21. JakeGint

    Meanwhile, over in Cement Land, we take on the subject of The Mighty Maggie, The $HUI basement, and Mr. Inside Business’s Mighty Folly.

    Don’t miss it.

    ______

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  22. Bullish

    Well said.

    Surprised you didn’t reflect on the successes and growth of iBC in 2011. I’m guessing that’s growing high double digits.

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  23. theedge111

    Brutal year.

    I am up 6% playing mainly the short side and its been just as brutal.

    Nothing like killing it in August and then having a 20% rally shoved up your ass in October.

    Can’t wait for the holidays. I’m beat.

    Paulson must be ready to take the bridge after watching gold move like it has this week.

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  24. RealLife

    Man, I concur! The year has been brutal. I’m man enough to put up with the occasional arrow – but it’s been fucking spears all year long!

    S’pose I should be grateful still being up ytd – but I’m wounded and gasping for air…

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  25. moolahheaven

    ‘Fly’ don’t be so hard on yourself. Even Walter Payton didn’t run for a TD every time he took the ball. In fact considering the difficulty of 2011 you performed extremely well – and it ain’t over yet.

    I’m doing this shit for 14 years now, and I ALWAYS learned more when I lost moolah then when I made it. Whatever loss you have in the lesson of 2011 will pay off in the longer run, especially since you are a 155 IQ, Plutonium fed space alien magician. Thanks for all you do, and the hilarious humor with which you do it.

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  26. Trading_Nymph

    I am staying up and reading the Flash PMI’s when they post tonight. This year was amazing..it marks my forth year in my learning process of this amazing game. Can’t wait for year five…bit of a junkie.

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  27. Yogi & Boo Boo

    Nice recap Dr. Fly. Next year will be better.

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  28. coin

    good review….which book are u reading? classics?

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  29. Juice

    Doug Kass channels le Flea this am; to wit –

    The Opening Missive I Wanted to Write
    DEC 15, 2011 | 7:23 AM EST

    Let’s put our cards on the table.
    I get it, the world is flat. I have read Tom Friedman.

    I recognize that no nation is an island and we are all economically interconnected, but, seriously? A bunch of Europeans are upsetting a stabilized-to-improving situation in the United States’ economy, creating a real threat of a worldwide economic double-dip and hurting our stock market.

    Like I give a crap about a bunch of German leaders who are intransigent and dogmatic in policy and are dangerously bullying the rest of the EU?

    As for the French, they are governed by a bunch of socialists in the Senate — they don’t believe in capitalism to begin with.

    German and French leaders and central bankers should all be given an ultimatum by our leaders: Immediately reverse your “tame and timid” approach to your debt crisis and replace it with “shock and awe” before the debt contagion spreads to others’ shores.

    There. I said it.

    I and a lot of other Americans are getting really pissed off.

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    • Nice

      Yeah, because the US has been just superlative in containing the problems it created in 2001-2008. If Kass doesn’t see the connections, he is a bigger asshat that he is reputed to be.

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  30. Goose

    Remember “Occupy Wall Street”

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  31. insidetrader

    corzine better be asshat of the year senator governor wtf-just asshole of the decade.

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  32. the man

    tom friedman, asshat of the century

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  33. TradeThief

    I nominate myself for not doing shit to change my life.

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