okay that is probably one of the dumbest titles for a thread, but it sums up a lesson about the market.
in the classic Reminiscences of a Stock Operator, which is written about the famous Jesse livermore, though his name is not mentioned, he tell you about the 1920s and before. his dealings with the market good and bad.
anyways in the roaring 1920s himself along with some brokers always joked about this old broker who walked funny and they called him, nicknnamed the rooster.
so a client goes to see the Rooster on a regular basis, every few days, or once a week for a while (been a while since I read the book). the man comes in with pages of information on why the market should go down. tons of facts.
The Rooster after listening to all of the facts, simply states (its a bull, a bull market, you know).
the client leaves shaking his head as the rooster simply states this phrase.
basically the rooster is telling the client an obvious and wise observation. do not go against the market. it was a roaring bull market, to short in that market is very dangerous...you can be correct and he was see 1929, but the years before that would have wiped you out, so though you are correct, wrong timing would have killed the client.
I just closed out two shorts, all of the money from options was gone (made, and I made a small $5000 contribution for being an idiot and not covering earlier. though my loss would have been double if I waited another week.
so you lose $5000, you pay sometimes for your education and learn what you did wrong. by the way listen to the rooster.
by the way since the market wants to go up everyday, still not bad to look at buying some puts,and adding some to you cash position. that is not specualtion just insurance, and it will drop to bargain base prices as the market rises...so no rush and buy the insurance slowly and cheaply.
finally listen to the rooster but start looking at some insurance just in case.....
thanks
selkirk
in the classic Reminiscences of a Stock Operator, which is written about the famous Jesse livermore, though his name is not mentioned, he tell you about the 1920s and before. his dealings with the market good and bad.
anyways in the roaring 1920s himself along with some brokers always joked about this old broker who walked funny and they called him, nicknnamed the rooster.
so a client goes to see the Rooster on a regular basis, every few days, or once a week for a while (been a while since I read the book). the man comes in with pages of information on why the market should go down. tons of facts.
The Rooster after listening to all of the facts, simply states (its a bull, a bull market, you know).
the client leaves shaking his head as the rooster simply states this phrase.
basically the rooster is telling the client an obvious and wise observation. do not go against the market. it was a roaring bull market, to short in that market is very dangerous...you can be correct and he was see 1929, but the years before that would have wiped you out, so though you are correct, wrong timing would have killed the client.
I just closed out two shorts, all of the money from options was gone (made, and I made a small $5000 contribution for being an idiot and not covering earlier. though my loss would have been double if I waited another week.
so you lose $5000, you pay sometimes for your education and learn what you did wrong. by the way listen to the rooster.
by the way since the market wants to go up everyday, still not bad to look at buying some puts,and adding some to you cash position. that is not specualtion just insurance, and it will drop to bargain base prices as the market rises...so no rush and buy the insurance slowly and cheaply.
finally listen to the rooster but start looking at some insurance just in case.....
thanks
selkirk
