Hey Mr. Market, Speaking of fine meats......did you have the traditional Turkey this year? Please excuse the forwardness.....I do not want to know your net worth either.....But if you did share a trading account balance for the purposes of your stock trading model it would not reveal a well diversified approach to investing....and assuming you do not have your entire portfolio wrapped up in this stock portfolio...it would not reveal that your "Huge" Michael B.
All I'm saying is the risk from any one stock is not too big, IF we assume you spread your account over 15-20 names. Of course, there is market risk. They could all go down at once, but that is the risk that any long only account faces.
Yes...I enjoy the opportunity to consume turkey. It is high in protein and allows me to improve on my 385 lb bench press while I pump up my 19" biceps. My real question is to those of you who doubted the credibility of my track record. I have maintained that the fact that my credibility was challenged indicated to me that you found my performance extraordinary. Indeed, if I only claimed very average returns, no one would be screaming for me to scan and fax audited brokerage statements. Hopefully, referencing you to my posts on the Yahoo message boards will quell your suspicions and you will admit that I did indeed pick the stocks as I said I did. So that is 44 winners in a row (and counting). I might add that those of you who questioned my integrity seem to be awful quiet. Anymore questions?
Mr. Market, To save time....Could you help me? If I joined your Yahoo Group and followed your picks with a 100k account starting exactly 12 months ago and if I liquidated today at market close, how much would I have in cash after settlement? Michael B.
One of my favorite classes at Wharton was Portfolio Management. The reduction of non-systematic risk is a goal of good portfolio management. I apply some simple statistical models to examine the risk taking habits of managing a basket of stocks. The total risk of a portfolio that is managed against a predetermined benchmark can be decomposed into a benchmark risk components and a non-systematic risk component. The benchmark risk is rewarded unconditionally â implying that in the long term one expects to be rewarded for simply being invested in the market (irrespective of the skill of the manager) and that the non-systematic risk is rewarded only conditional on the managersâ skill. I keep my portfolio to 10 - 14 stocks exactly for the reason you mentioned. Since I pick great stocks, most of them will do well. If I get one flat tire, it doesn't hurt me overall and I can wait for the spare tire. It is statistically unlikely for each and every stock to drop in price, independent of the benchmark risk, to a point where my overall capital position is severely impacted. Picking stocks that do well, in different industries, and using diversification to manage ones risk, is what makes someone a great investor.
See mrmuscle, that's a very good point. So, if you "don't think discussing one's personal net worth is really appropriate", how come you feel that discussing one' personal bodily fitness, biceps size, ability to push 360lbs, ability to rank high at hotornot.com, or ability to give a woman 52 consecutive orgasms is appropriate? Maybe you should think about the answer. I suspect it's because after all, your net worth isn't as huge as everything else in/on your body and ego. You see, it sounds mean of me saying that, but if you want respect from me as a trader, then you've got to be able to show a few hundred K doing what you're doing, because most halfway smart people can make money with $5-50K, but show me your big guts doing it with decent size. How much does it take me to make a few hundred K in a year, trading futures? Well, a couple of hundred K maximum. I very much suspect that my yet far from top-performance by far surpasses your "performance". Do you honestly think I'd hold onto something for weeks or months, just to get 15%? You must be kidding me. I'm a trader, not an investor. If I was to trade like you, which is position, or long-term position trading, I'd rather read Inandlong's swing trading method or Jack Hershey's stock swing trading method for that matter, which has also been very fruitfully 'translated' by Inandlong, and by far beats your performance (past official performances have ranged within or over 5% per week) Think about what you're doing around here, mr muscle. You are: - Claiming you're HUGE based on what is mediocre performance at best - Taking enormous risks, i.e. have a "till death part us" money management regime. You use no stops - Requiring to add more capital to your portfolio as 'opportunities' and drawdowns occur - Refusing to make statements about anything but your net $ performance - Wanting attention on a board literally loaded with losing traders, rather than participating in trading constests, for example. Now, I think I have reason(s) enough to be concerned about your integrity and attention-seeking behaviour, not to mention performance, to be able to say this, and so would many others around here. Good Luck! Scientist.
It's not easy to conceal the fact that I have 19" biceps, even though I have no desire to do so as it is a testament to my hard work and dedication to something I enjoy. It is easy, however, to conceal what my net worth is. How much money I have is my own business and I believe any right minded person shouldn't really care how much money anyone else has. How many people do you know at Starbucks that walk around with their W-2 attached to their baseball cap?? You seem to be very passionate about something that, to me, is really insignificant. I wouldn't call all of the people on here "loser traders". I think some of the posters are very intelligent and I have learned from them. For this I am grateful. All I have learned from you is that I irritate you. May I suggest son, that you take up drinking heavily.