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
18,706 Blog Posts

Rules #1 thru 1 Billion — DON’T BLOW YOURSELVES UP

You need this talk — because greed causes people to do funny things. At the end of this blog is a mea culpa of the owner of OptionSellers, who just got blown the fuck out and turned into dust. I’m indifferent about his experience because he’s old and should’ve known better. Blow ups are for younger men, creatures of finance with chemical imbalances and small dick syndrome. If you’ve been doing this long enough, minimum of 10 years, you know blow ups happen all the time, even to the so called ‘smartest fuckers in the room.’

Once upon a time, 18 years ago, I had a blow up. Back then I was untrained and in my early 20s and literally didn’t know what the fuck to do once the party ended.

Let’s make a few things clear now.

The recent trends are lower. Ergo, your short term bias should be for lower prices. Given the fact stocks, over time, almost always go higher, you should temper any bearish positions and implement some 2nd and 3rd order thinking.

What the fuck do I speak of?

Stress test your portfolio. Dissect it and build worst case scenario models.

What are your position sizes? Greater than 10-15%? You’re an idiot. Is your entire account being traded? You’re an idiot. Is your long term account being tended to, reassessed to conform with the times? If not, you’re an idiot. Are you diversified? How do you know and what is your benchmark? Is your trading account using margin? Are you using stops losses to contain losses? Are you trading just for the sake of trading?

The present tape is really hard. It’s a non-stop ball game with Nolan Ryan on the mound, spitting out 105mph peas. Why not wait for a new pitcher?

Eventually, the market trends will improve and easy money could be made again. Chill the fuck out and quit churning yourselves into oblivion.

Look at this asshole below now, crying and shit because he sold naked calls against natural gas and got himself and his ‘family’ members eradicated from the field. When you get a six sigma event — your models mean nothing. If you have a strategy that has outlier risk and could blow up during a black swan event, simply avoid said schemes and focus your efforts on compounding returns over the next 30 years.

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13 comments

  1. heckler

    Wow nice cufflinks! My urge is to talk shit but I’ll refrain on a count of karma if that’s for real

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    • Lyndon Keltner

      But then he’s really stupid to go short natty given the weather.

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  2. Lyndon Keltner

    I believe the Nick Leeson $1-billion blow-up remains the biggest blow-up by a single trader ever.

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  3. juice

    optionsellers dude looks like lance armstrong

    https://people.com/sports/lance-armstrong-bloody-selfie-after-falling-bike/

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  4. jbandy

    Asshole Trump trying to talk the market up on Friday…then this…

    PORT MORESBY (Reuters) – The United States will not back down from its trade dispute with China, and might even double its tariffs, unless Beijing bows to U.S. demands, Vice President Mike Pence said on Saturday.

    https://www.yahoo.com/news/pence-vows-no-end-trade-action-china-until-024554316.html

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    • juice

      yeah, what an A-hole for trying to have fair trading with another country! What a Schmuckaroonio!

      and btw, Pence did not use the words “bow to U.S. demands”. That is how a unobjective, biased media that does not practice true journalism frames it. Naturally, those who have Trump Derangement Syndrome eat up such phrasing and pass on the lie.

      Pence in fact put it this way — “We have taken decisive action to address our imbalance with China, … we put tariffs on $250 billion in Chinese goods, and we could more than double that number.”
      “The United States, though, will not change course until China changes its ways.””

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      • soupbone

        It is an extremely difficult situation and I hope it works out. Trade with China has been deflationary in reality. And the whole manufacturing sector was moved over, almost. Yet they appear to be takers only.

        The numbers don’t show the deflationary forces in play right now. Folks are not benefiting from the economic recovery like in the past.

        China, as brutal as it is, takes a back seat to technolgy advancements for deflation creation, however. Cheery eh?

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      • Lyndon Keltner

        Stephen Roach of Yale, an unusually apolitical academic who has studied Asia in depth, opined earlier this year on the trade war’s potential effects on the beleaguered American consumers.

        In short, if Trump is to escalate and prolong the trade war, he stands to hurt his “blue-collar” base the most. All his life, he never ran out of willing suckers to fuck over. I doubt it’s any different this time.

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        • soupbone

          Tarriffs are backward looking. There is no chance to fight back anything. China can cough up some, maybe but I doubt it. Slow and deliberate changes over the long term always looking forward.

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  5. s.k.

    That was hard to watch. Respect to that guy to standing up and owning it, instead of just going into hiding.

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  6. dae42

    Fly buying inverse ETFs.

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  7. chuck bennett

    Was that video for real ?

    Regards

    Chuck Bennett

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  8. jcvtwo

    naked=stupid

    anyone can be wrong.

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