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
23,441 Blog Posts

I Will Miss The Top

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] If you enjoy the content at iBankCoin, please follow us on Twitter

28 comments

  1. Anton Cigur

    Sage carrot chopping advice for home chefs.

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  2. mustard seeds

    Anton,

    For those that need that perfect carrot chopping machine…

    http://www.youtube.com/watch?v=rUbWjIKxrrs

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  3. richpuer

    I like your style…sooo true

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  4. Anton Cigur

    “You’re gonna love my nuts.”
    — Vince

    Do you think Vince was Billy Mays’ cocaine connection?

    Kind of has the market to himself now, unless Ron Popeil (sp?)
    comes out of retirement like the Gaul in “Gladiator.”

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  5. TA

    Once again sage advice from a real trading pro especially the carrot chopping part.Analogies don’t get better than that.

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  6. Curly

    yep

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  7. TrackingCR

    “life (and trading) is hard enough as it is … you do not want to cry anymore”

    I am sticking with the winning insights from the FLY, CA and RC !! LMAO

    http://splicd.com/rUbWjIKxrrs/106/122

    We need some music …. slopchop’s your troubles away ….

    http://www.youtube.com/watch?v=UWRyj5cHIQA

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  8. Hammy

    There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time.

    Nothing wrong with scaling back to 25% or 0%. For the perpetual loser, heavy trading is a symptom of gambling, not speculating.

    “I must not begin to advance until I am sure I shall not have to retreat. But if I cannot advance I do not move at all.”

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  9. The Fly

    DON HARROLD SELLS OUT

    http://www.youtube.com/watch?v=v7YDsppWgb8

    lol

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    • Yogi & Boo Boo

      Great stuff. Don Harrold goes “pantless”. Next video Don Is going to show up dressed in a barrel like a 1930’s cartoon.

      Is this the fate of all who are on the wrong side of the market? Selling crap on the internets?

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  10. Teahouse On The Tracks
    Teahouse On The Tracks

    OEW Weekend Update:

    “Since the pullbacks during this rally have been numerous and minor it has been a bit difficult in determining the shorter term count. Currently we’re counting wave 1 SPX 888, wave 2 SPX 873, wave 3 SPX 982, wave 4 SPX 969 and wave 5 underway. Waves 2 and 4 alternate between a zigzag and a flat. After this five wave rally concludes we should get a significant pullback and then another five wave rally to complete Major wave C and Primary wave B.”

    http://caldaroew.spaces.live.com/?_c11_BlogPart_BlogPart=blogview&_c=BlogPart&partqs=amonth%3d8%26ayear%3d2009

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  11. Captain Anarchy

    Of all your multiple personalities, Fly, I like this one the best. It’s not a disorder if your personalities work as a team and are smart enough to keep their shit together!

    Seriously though, sage advice. Not only because it’s classic lessons people often forget, but also because of the little twists like hedging with crap stocks instead of hedging with indexes. That’s a new one to me, and I look forward to trying it.

    I’m curious though – do you not mention options because they’re not your area and you don’t want to talk out your ass like the rest of us? Or do you think they’re worse than shorting, with it’s losses limited only by your margin calls and the stop running fuckery which seems to happen so often.

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  12. Skeptical

    Everyone’s having a “banner” year.

    It’s when the Kool-Aid wears off — we’ll see what kind of gains everyone gives back.

    There’s just a lot of greedy fuckers out there who’s sense of self-worth is completely tied to how much money they make.

    The only traders I’ve found worth following don’t mind admitting losses and don’t go swinging their dicks calling out how much money they made on every perfect trade. Too many Twitter tools out there.

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  13. Mr. Leonard Dysktra

    The Fly will not miss the top – it might appear that he does, but he will not. The Fly is a student of winning like me, Nails, and could not lose if he tried to lose. Don has an idea – selling the clutter – I have a Rolls and a G2 for sale. I used to live in the greatest house in the world.

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  14. TheArtist

    Good Morning Vietnam……..

    what is on the agenda for today?

    give me some juice people.

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  15. ZenProfit

    FTK to $3.00 today??

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  16. The Fly

    acas is a good dip here

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  17. The Fly

    lvlt looking good.

    off to a meeting

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    • TraderCaddy

      Don’t forget your fancy watch and those Baker duds. You know. The ones you got at Premium Outlet in Orlando.
      And of course wear your socks and wipe that oatmeal off your face.
      And remember you are iBC and act accordingly.

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  18. Pedro

    Wasn’t FTK supposed to report before the bell?

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    • ZenProfit

      “Date & Time: TUESDAY, August 11, 2009 9:00 AM CDT (10:00 AM EDT)

      Dial-In Number: 800-860-2442 (U.S. & Canada) 412-858-4600 (International)

      Passcode: Flotek

      Call to be broadcast live at http://www.flotekind.com

      The Press Release had the wrong day.

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  19. Vote for Pedro

    Looks like ACAS is about to shoot higher. Sellers are basically done selling. Very high volume due to the large dividend payment. Now all the people who selected a cash payment are going to be upset they did. Up she goes with conviction.

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  20. Mushroomz

    buying some more GLW down here

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    • Vote for Pedro

      I like it Mush. Should pay off well. I wish I had some more ammo to buy, but I am full invested currently.

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