I started trading full time in July 07. I currently hold both short postions and long positions. By long I mean a day, hour, week, it depends on the volume, pr and if I've created enough of a base investment in the stock. I manage a personal porfolio of $100,000. Im not big time. I understand market psychology and how to utilize the float of a stock and the short % to benefit my strategy...Set up an entry point and an exit point .Buy on the dips.The deleverageing we saw in sep of 08 will not be repeated any time soon. Here are some rules 1.have a margin account with your broker so they dont hold your funds for 3 days while it setttle's a trade 2.be able to short a stock. Not in a maliious way, just looking for over bought conditions. Artificially inflated prices happen because of over demand. Once demand falls, so does the stock 3.have a enter point..if you miss it , dont chase it 4.have a exit point. there is nothing worse than holding a stock for a loss that has no PR and hope of moving. when your wrong, say your wrong and move on. ( this is way different from leverageing down, which i am a big fan of ) 5.remember to use stop loss (gain)...after you create a positive base, use a stop (Gain)loss, its less stressfull than staring at your computer screen. 6. You dont have to trade today.....what? 7. every morning do 4 things . look at the futures , check the asia and europe markets ,check for upgrades and downgrades, and look for earnings or pr on the stock your watching
I have had extensive independent bicycle touring experiences in Cambodia,Laos, Burma, Sri Lanka, India, Thailand, Malaysia, Vietnam, Fiji, Bali, Australia, Singapore Philippines, Portugal, Spain, France, Italy, Slovenia, Hungary, Mexico, Costa Rica and of course Canada and the United States.
I am an equally independent investor, prepared for the ups and downs of the market, so long as I have a sense of where I am heading and am enjoying the ride.
I am 64 and I am an active Trader in the Equity and Option markets. I bought my first shares of stock (4 shares of VMC) at age 10. I have and continue to use a combination of both Fundamental and Technical analysis. I specialize with Pivot Points & Technical Analysis Crossovers.
Lawrence G. McDonald has written a book on the fall of Lehman Brothers, with Patrick Robinson, the #1 New York Times best selling author of Lone Survivor.
“A Colossal Failure of Common Sense - the Inside Story of the Collapse of Lehman Brothers,” is being published by Random House and will be on the shelves in stores 7/21/09. Currently, Lawrence is a Managing Director at Pangea Capital Management LP.
At Lehman Brothers
From July 2004 through September 2008, Lawrence G. McDonald was a Vice President of Distressed Debt and Convertible Securities Trading at Lehman Brothers. He ran an extremely successful joint venture between the firm’s fixed income and equity divisions. He was the most profitable trader on the convertible securities desk 2006 and 2007.
The Subprime Implosion
In early 2006, Lawrence was part of a faction that called the subprime crisis, then he made over $46 million for the firm during its implosion. Mr. McDonald was highly regarded as one of the most consistently profitable traders at Lehman with over $83 million in trading profits during his time with the firm.
More interestingly, Lawrence McDonald was an integral part of a faction within Lehman Brothers that passionately tried in vain to stop the firm from heading down the road to destruction. Likewise, he also worked closely with Lehman’s credit derivatives team and saw first-hand the design and construction of what Warren Buffett termed as “Wall Street’s financial weapons of mass destruction.”
Disclosure: Long = America. Short = The Boards of Directors "The good ol boys club".
"If Americans ever allow banks to control the issue of their currency, first by inflation and then by deflation, the banks will deprive the people of all property until their children will wake up homeless." - Thomas Jefferson
"Banking establishments are more dangerous than standing armies". - Thomas Jefferson