up or down
Question: Which way is this market going to go? I have no idea. And I no longer care. Money can be made in both directions. Yesterday, I hedged my decision on Rambus. With Schwab’s multiple order sheet, I bought RMBS; I shorted RMBS; and finally, I stuck in a buy limit order on the short side. I wasn’t worried about a sell limit since RMBS has been a favorite for weeks and the big brokerage houses were calling it an aggressive buy. The limit buy order for protection on the sell side kicked in damn near as quick as the order was executed. Figured what the hell, since in my mind, I had pinned down direction, I increased my RMBS position to regain my present loss. RMBS closed at 83 in change, up 26+ percent. As a non-institutional investor, a little knot on a big plank, I only reaped a small part of that increase since the pre-market took it from the previous days close of 56+ to 72+ by the time the market opened. I can make this triple execution because I now compute my total loss before I buy. Now I can margin excessive amounts and not worry about losing the wife, the dog, the house, and the car. No matter how far I go out on margin to buy shares of a stock, if things go sour, I know for a fact >>that I will lose only X dollars. As a result, I >>refuse to limit myself to low numbers of >>shares. I can buy enough on margin to >>make a killing with no fear. Life is good. >all RIGHT! good on you Walter! (it is >Walter, isn’t it? my memory >never was what it used to be…)
Answer: Yet, I am upset;-) with you. You could have explain what I needed to do a long time ago and stopped the need for a portfolio transfusion. I guess, like all good teachers, you saw you job as opening the door, but I, as an avid reader of your post, had to have the wisdom to walk through. I guess, you were trying to lead me into a soft landing, thinking for myself when you kept speaking about straddles and figuring losses before executing a buy or sell order.
I paid a goodly sum in time and money to get my degrees–no student loans here. I am paying similar sums to navigate my way to learning what it means to be an investor in equities since you old timers (not in age, but in a priori knowledge, investing experience, and time in the group) are so circumspect in parcelling out information to newbies like me. I understand why, so I haven’t and will not hold it against any of you–as if any of you would give a care if I did hold it against you or not.
Hats off to all of you who participate with your questions, your answers, your opinions, and your contra opinions.
Related Posts
Filed under: School Loan
Leave a Comment
XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
TrackBack URL | RSS feed for comments on this post.