My Bad

Yesterday I wrote a column called Patience is A Virtue, where I wrote "Warren Buffet has said there are no called strikes in investing". Yet, on the same day I got sucked into a trade that I myself had said only had a marginal positive risk/reward profile. Luckily, the position was small and the loss I am taking is tiny. I have been trading very patiently for the past few months but once in a while a reminder is needed. Luckily, this one was cheap.

8 comments:

Anonymous said...

How much do you typically allocate into an average trade. Excluding this spy stuff...it seems you always make very small tradea from how you comment.

When ABC healthcare is your largest position do you mean its 3% of portolio? 13%? How much cash do you lug around...it seems like you are mostly in cash and trading very small around the edge?

Tsachy Mishal said...

Believe it or not I usually take large positions. I would rather put my eggs in only a few baskets and watch those baskets like a hawk rather than try to keep up with fifty positions. So If I say am taking a position in something its probably safe to assume that it makes up at least an eighth of my portfolio.

At the lows a few weeks ago I was slightly on margin (in very low beta, large cap stocks) and completely unhedged. As the market has risen I sold some longs and hedged. I am currently about 2/3 invested but hedged and roughly market neutral.

Chaos! said...

I'd stay short. Financials are tipping off the next move IMHO.

Anonymous said...

I think that the risk-reward is reasonable, though I admit I'm nervouus about option exp and mondays. Still, the rally is old enough, the indicators are extreme enough, the economic cheerleaders including Buffet have had their say and Elizabeth Warren is about to take a bite out of bank profitability long term.
But waiting till Monday eve is safer.
Praguer

IC said...

Have an easy and meaningful fast. Thank you again for sharing your experience with us. Best wishes to you and your family.

Tsachy Mishal said...

I agree that chances are we go lower short term but don't have the conviction to put my money where my mouth is. A close above 1130 would suck in the last holdouts and at that point I think we would get a much better correction.

Anonymous said...

I hope that Anonymous of 12:23 is right that Elizabeth Warren will have the chance to curb some of the bad behavior of the banks, but I am afraid that the administration will bow to pressure from the banks and not nominate her as permanent director. That filthy prostitute of the the banking industry known as Chris Dodd is certainly not going to fight for her confirmation.

Anonymous said...

Re: Elizabeth Warren
From both her statement and the comments of others it appears that she wouldn't have taken the position if she didn't believe that she would have an impact.
Praguer