What’s with your obsession to be 100% right, all the time? The best investors out there get shit wrong all the time. However, it’s the level of “wrongness” that separates them from you aka internet tradebot. Case in point: into sharp rallies, most retail investors lever up and go “balls on the kitchen table–while chopping carrots” long the market. Unfortunately, often times they are helping institutions get liquid into a crescendo of selling.
I may be barking up the wrong tree with many of you, since the holding pattern of the people on this site seems to be shorter than the time it takes me to take a leak at my favorite urinal. However, God willing, there are some of you out there who still swing for the fences, hoping for the game winning Grand Slam in the bottom of the ninth (against the Mets, of course). To those people, I warn you: Senor Tropicana will miss the top, mainly because he will not attempt to catch it. In the past, I made every effort to catch big inflection points, just so that I could dance on the graves of my enemies, with a little more frequency. However, with more than half of 2009 behind us and my gains built up to obscene levels—not 300% obscene, but obscene nonetheless— I am opting to play small and bold, instead of large and scared.
Do the math yourself, you stupid bastards. If you have a 50% gain, year to date, take 1/3rd off the table and keep playing. You don’t need to go 100% cash at the sight of every fucking sell-off. People, that is rookie shit, foolishly running up transaction costs due to amateurish fear.
Man the fuck up and choose your position. If you think the market is a short, leg into short positions, NOT inverse etf’s. That’s so 2007.
If you are bullish, float in and out of your favorite stocks, if you must. But, keep the long exposure at a constant 65%+, at all times. In the event the market melts the fuck down, you will not be badly impaired holding a 35% cash position. Furthermore, you can always use 20% of your cash for hedges, going short assholes stocks, with asinine valuations. I can name more than a few right now, particularly in the coffee space.
In short, “The Fly” is having a banner year, with gains coming out of his ears and nose. Barring some sort of “40oz. cracked over your head” situation, I will be riding this fucker out (the bull), until the legs fall off.
[youtube:http://www.youtube.com/watch?v=W5sXy7HsUUQ 616 500]
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