Back to the Subject of Buying Winners

If one of you little trollops mentions my foray into high beta tech again, I’m gonna punch your ears off. I don’t mind differing opinions. Truly, they can be thought provoking. Not to isolate one person’s comments and toss him onto the BBQ grill, but I have a bone to pick with “I AM JESSE LIVERMORE.”

First of all, the stupid name suggests he’s some sort of wannabe short seller, based upon the assumption that he thinks he’s Jesse Livermore– ergo, the name choice.

After I posted my buy of SLCA, which is +2 from my cost basis, JESSE “fucked face” LIVERMORE had this to say:

 

jesus christ, the object is to buy LOW and sell high, not the other way around Fly.

 

What the fuck does that even mean? I guess he assumes I shouldn’t buy stocks when in a roaring bull market, because, ummm, stocks are trending the fuck higher?

He continues, after being called out on the carpet for the dog that he is:

Certainly not when the weekly RSI is at 80, which is what SLCA is at now.

Or when a stock is up 98% since the SPX bottomed in early Feb. And insiders are dumping the stock like crazy.

This is the exact same thing you did w/WDAY, YELP, FEYE, SPLK etc. Chased big winners.

So because I lost money over the past month, I should discontinue the methods that have made me successful over the past 18 years? Moreover, he cites insider selling, which has been proven to be absolutely nonsensical bearish points about any company. And, lastly, of course, he cites my losses in The Four Horsemen of Financial Disaster.

Oh, by the way, there was an insider direct purchase the other day.

He’s not finished:

marcus,

““Up 98%” – so don’t buy a stock because other have been buying it?”

No, you exercise some patience and buy strong stocks on pullbacks. Not when it’s massively overbought.

And did you really think I was using cloud/saas internet stocks as comparable “peers” to a drilling supplier? Those were merely to illustrate Fly chasing big winners at highs instead of waiting for an entry point with a good risk/reward and defined downside.

And lastly, you mad bro?

 

Ok, here’s the thing that pisses me off about his whole train of thinking.

1. He believes in bullshit like RSI’s and how stocks that are going up should “breathe” and go down, as if it were that easy. Look at any major winner over the past 100 years and bear witness to their breakneck ascension into the stratosphere. Understand that scores of people, who thought just like you, shorted NFLX from $60 to 100 and AMZN from $60 to 100 and CMG from $60 to 100, only to get their fucking space helmets crushed into tiny pieces and their brains strewn out–all over their living room floors.

Rule #1: don’t assume to know anything. You are a pleb and the market kills people like you every single day, even the real Jesse Livermore.

Rule #2: don’t attack me for averaging up on a stock that is working for me, in a sector that’s highly profitable and should continue to do well for the next decade–literally.

Lastly, I’m not married to these stocks, as demonstrated by my willingness to cut losses rather quickly as of late. I’ve sold out of about 6 stocks for small losses and held one giant position for a mammoth sized win. The net result has been a +10% advantage to the good over the past month. If SLCA reverses on me, I will sell it. I certainly do not need a sermon about the tenets of investing and how I might comport myself should things go awry. Don’t assume anything, Mr. Jesse Livermore. I’ve been eating the livers of people like you for over a decade now and will continue to do so until your brokerage account assets have been depleted into pixie dust–a dream, a fantasy, a nightmare.

 

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