Another Site

Diaper Bum

I love the financial market. A bewildering mix of mathematical theories and psychological ideas creates an entity which I can not help but watch and study. Yesterday I explicitly sat down to trade, and over the span of six hours managed to obtain some of the best returns I ever had. The downside was this trading session went from 8 pm until 2 past midnight.

On the drive into work this morning, I thought about keeping a trade journal. All of my trading platforms keep track of all the entries and exits, but there is no place to hold onto how I felt at that time or what I saw that made the trade so appealing. A blog fits this niche, although I'm pretty sure that only small fraction of people that read this web log care about what I'm doing in the markets. To that end I hijacked the Order of Magnitude site for my personal log and rant space. It was intended for another project, and since that project has slowed down to a crawl for the summer, I figured I might as well use the URL. It's equipped with an RSS feed, should you use tools to help you with that sort of thing.

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Revolutions

Fruit

My thirtieth trip around the sun was market on the calendar for last week.

Despite my desire for a lack of drama, my automobile would not have anything of the sort. The cold snap on Monday prevented some normally functioning part from performing its duties. The land yacht encountered some type of transmission problems, and would require twice as many rotations per minute from the engine to get the same speed out of the wheels. I engaged Ninth Ave Auto to find me a vehicle and they did not disappoint. Delivered on my birthday proper was a silver 2003 Nissan Pathfinder. So far it has met or exceeded all expectations, including how much fuel it consumes. This summer, more offroadish camping adventures await in Bragg Creek, and I'm very happy to have something with four wheel drive again.

My celebratory occasion in time was not without some windfall. Sonja bought Rockband for us, and it is the most fun I've had in a long time. The drums, I imagine, are everyone's favorite, as they are a great break from the general idea of a video game. I've lost myself a few times bashing away at the electronic pads, trying frantically to put together the little rhythm that I have to get through some songs. If you think I'm crazy, then you haven't tried it.

I also received some credit at some of my favorite stores. Although I haven't unloaded on electronics, or outdoor gear YET; however, I did have to pull the trigger on some dead tree carcass. I couldn't help but wonder, as I stood surrounded by wonderful pieces of fiction, great literary history, personal biographies, compilations of comics and more reference than one can comprehend why I would pick up the equivalent of a text book. Again, I realized that the last bit of fiction that I consumed was a good book devoured in a single sitting. When I handed over the massive tome, I had to wonder if many people spend their windfall on what others would consider torturous.

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Money Matters

Jen and Matthew

If you haven't been reading globe investor, Yahoo's or Google's finance pages, or been within 10 feet of a television while the news is on you may not know that over the last couple of day's the markets have slid a few dollars. It really hurts when thousands of dollars have been shaved off of your net worth, and companies that you once invested in are trading at lows not seen in 3-5 years.

I've always been a proponent to stop loss orders, and the market barged right through a lot of my 15% barriers. But, like an idiot, I just jumped right out of one burning car and into another one with another 15% stop loss in place, three days later: whoops, there's another one. On the plus side, I haven't lost as much as I could have, because of some covered call writing.

Everything has been flying towards the bottom. TSX is down over 11% from last week, and NASDAQ over 10% on the year. It's been great fun watching people scream about a recession, and the talking heads spouting everything from the worst is over, to the free market is over. I'm not in the boat that thinks that society is coming to an end, and I'm pretty sure we'll recover. If you peek at a nice long chart of one of the averages, you'll notice that it does move down quite a bit and even including the tech bubble pop earlier this century, it always goes back up. I have the time to wait this one out.

In the meantime, it's generating a lot of buzz. I had the best laugh about the markets when Mike showed me this video

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Where the Money’s At

Lucy

I've been sitting on the sidelines watching the phenomenon called the stock market, and the more time I spend doing it, the more amazed I become. This particular area of interest came from a particular financial company that I think is unfairly priced at the moment, and have been reading about what's been going on 'on the street'. Reading through some message boards the usual group of crackpots were chanting and forecasting and I found a little tidbit that I just continued to read into.

At first, it was a bunch of people hacking on Jim Cramer calling him the usual pile of names you'd expect. The people decried him for manipulating people, and saying one thing while doing another in order to sock in huge profits. The stories led me through a series of videos about naked short selling, and I noticed a commonality between some of the things I was reading, namely: hedge funds.

I wish someone would have told me about this 10 years ago. Looking at some information we can see that hedge funds make people boat loads of money. The top firms on that list at least doubled their client's money in two years, and the gentlemen behind the wheel made off with millions upon millions of dollars. Not only do I want to invest in a hedge fund, I want to run one.

These guys aren't the little market makers that spin around the bid and the ask price, these guys move the market. Some of the larger funds can buy and sell whole companies, and just the news of what these guys are doing can move stocks by double digit percentages. Who wouldn't want to have that kind of clout?

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