Managing Funds for a Living

Thanks Michael for your insight. Verbiage...yeah I know. I am not genius and don't even have time to build a bookcase of reading material to even appear to be one. My resume is exhaustive - but as an Optical (Laser) Engineer.

That being said...knowing and understanding the market is almost half of what I NEED to capitalize the way I do. Daytrading, no. Services of value I do offer week-in and week-out, despite a wrong "top" call (I limited with stop methods) and various biotechs that make up a small part (but usually rather decent CC gains) in my portfolio.

I did not advise for ENCY...once again, it was an example. However sometimes these make my weekly list and for the most part I know how to profit from them.

I am not trying to work or gain entrance as a 'traditional' Hedge Fund Manager. You are right, Michael...expecting anything of this sort around here is for the most part insanity. But...I will broaden into Limited Partnerships and such - when I am (personally) ready. Even at this juncture I know I could - if I put my energies toward, put together a few interested persons to gather enough funds to start. But that is not (currently) my intent. One day soon it will be!

So it is a lot to read, but for some it is useful and we all know very few make any good use with their own investments. Ps

 

I just wanted to add this to this thread. I just started going out with this woman from Hong Kong a few weeks ago.

She came here when she was 18 and went to CUNY. Graduated and went to Morgan Stanley as a trading desk assistant doing very basic tasks. She is now at Citi some 5 years later and already obtained her CFA Level I (39% passing rate last year meaning 6 out of 10 who took it failed) and has the basic brokerage licenses such as Series 6 and 7.

This is the type of person I see getting employed by a greater cause. Someone who has certifications and has actually worked around real institutional traders at a trading desk by her mid-20s despite having come fresh off the boat from another country.

You often hear guys on here saying that they cant work around people or dont want to work around people. They dont like the routine of the office. They dont want to accept a position like trading desk assistant.

There are other people out there doing it and advancing as we speak. This woman by the age of 25 has a spectacular resume and someone I see who is very employable by one of the big names.

 

Is she hot?

 

...all the sidenotes have taken me away with why I am posting here anyway!

Well true to form the stack up of high volume selling days did affect the indexes today (as they should). Whether we've reached a short- to mid-term top is not exactly clear, yet.

I have been posting at C2 as well - biding time as 35% of my portfolio is currently vested into covered calls - and is doing well so far. I've reaped a 13% gain from premium and am up 11% thus far in 2007 for my funds at my website.



I did just start my fund at C2 so gains are minimal (if any, since options still need time to erode...although they are now ITM). As always I look forward to markets 'wringing out the froth' so that my small or negligible gains hold while the indexes tank. Then we'll have to wait for a bottom to once again get more aggressive putting cash to work.

Needless to say I am trying to 'blog' (leaving the url's out) these quite minimal efforts that are in keeping with producing decent results. Stay tuned.gA aka Paysense.

 

You're down... how is it possible to confuse a win with a loss?

 

I admit, this is a tenuous market - at least for my strategy (i like that term better than 'system').

All I can do is let the market be my guide. The light was GREEN when I opened C2 account. It went to Caution - good positions got stopped out and (for) now it's back to Green.

Here are some past market calls (excerpt from 13-Aug-2006 Newsletter):




"The stock market's choppy environment has created challenges for growth investors. Leading growth stocks all go through a similar cycle: First they outperform the market, racking up big gains. Then they top and roll over, usually before the fundamentals turn sour. Our Market Direction calls have allowed for members to lock in heady profits, all the while sitting in cash for nearly all of this correction.

"As early as May 11, we prompted members to move into a Caution stance. Then on June 7 we went into our Stop Losses mode. On June 29th we briefly went back to a Green Light, until members were told on July 13th to go back into Stop Losses mode, where we've been until now."

Then we (I) issued the "Green Light" from 15-Aug-2007 until 27-Feb-2007 when we went to Caution. That 6 month period allowed for me to convert solid past gains (converted to cash) into another 45% gain using covered calls. We never got into our Stop-Losses call, since on 21-Mar-2007 the Green Light was again issued.

To clarify recent comments, here is a quote from a widely followed news report:

"Wednesday's action reflected a turnaround from Tuesday's trading. On Tuesday, stocks started the session lower, before rebounding to close with minor gains in higher volume. That kind of upside reversal generally is a bullish sign.

"But Wednesday's downward reversal isn't what you want to see during a market rally."

Since coming to C2 you've seen we went from Green to Caution and now back to Green. As I say I can only follow the market's lead. It will be nice (not to wish bad tidings to other vendors) when we do go into Stop Losses mode or a true market correction of 10% or greater.

Just me looking at the major indexes and at some past notes [in brackets] to myself:

[Remember...last year it took 7 months to begin to outperform the averages...then we went exponential. This year may be the same, until we soon get into a recession or Bear Market. Don't worry...if things do seriously go down, I will still outperform nicely AND be preserving past gains.

Nasdaq again moving sideways. In 10 years, the Nasdaq has never moved sideways for much length of time. The last time (early 2006), was a precursor to a precipitous drop.

ALWAYS cut losses, ask questions later - use liquid issues.

Rather than trying to guess where the market goes from here, let the daily price and volume action of the major indexes be your guide.]

Another tidy quote:

"There’s a reason xxxxxxxxxxxxx.com pays such close attention to a stock’s price action and its volume — one rarely goes far without the other. And when prices make big moves without supporting volume, or volume spikes without price gains coming along, that’s often a sign of trouble."

Early 2006 looks a little like what the Nasdaq's been doing since the first of May this year - not exactly sideways in either case but an ever so subtle uptrend WITH LOTS OF HIGH VOLUME SELLOFFS.

My feeling is we will get a correction, soon. But I don't pay too much attention to my feelings or at my secondary analysis like the paragraph above.

So for now I concentrate on highly liquid issues with extremely strong technicals and fundamentals. it has been almost 5 days and the last position entered has held up...so I need to now gain further exposure - perhaps tomorrow.

I do covered calls A LOT different than what most all use it for. A slightly uptrending or sideways market (for most) is ideal for using covered calls. But the way I use it...with high-octane candy - should not be used in the hands of babies! Gilbert

...meanwhile this market forges ahead

For now I like these highly-rated girls: JASO, TASR

 

michaelscott wrote:

These jobs usually get offered to hot, young women...hmmm.


:eek:

 

Hey -- thanks for breaking down the math. Why would someone get a Series 6 and a Series 7? The 7 subsumes the 6. Do you have a 7 mr. bigshot letmetellyouaboutinstitutionaltrading? Maybe she has a 7,55,63 and you're just confused...or maybe it's your atrocious grammar confusing you.

 

Many leadings stocks made moves or held their ground.

Nasdaq does have support (is in a trading range).
Can wait until end of day to make trade with averages at lows.

buy one of these:
JASO 29.75 x 1.85
POZN 17.6 x 1.15

BULLETIN >> DOW INDUSTRIALS FALL 185 POINTS; WEEKLY DECLINE IS 2% (closed at lows)

Close (final tally)

Stocks ended a volatile week with a sharp decline Friday as investors again succumbed to nervousness about rising interest rates and souring subprime loans.

The Dow Jones Industrial Average plummeted 185.58 points, or 1.37% to 13,360.26.
The Nasdaq Composite sank 28.00 points, or 1.07% to 2,588.96.
The Standard & Poor's 500 Index erased 19.63 points, or 1.29 to 1,502.56.

A rebalancing of components in the Russell indexes led to a late-day trading surge, pushing volume higher in the session's last hour. Volume ran lower throughout the day, but surged to finish about 30% higher on both the Nasdaq and the NYSE.

The Nasdaq's Relative Strength line has been on the rise since mid-May, indicating that tech and other growth stocks are coming back into favor.

An index of top-rated companies outperformed major indexes, with a 0.1% gain last week and a 19.3% surge for the year.

Leading stocks confirmed their strength Friday.

For the week, the Nasdaq finished down 1% and the NYSE, the Dow and the S&P 500 down 2%. The NYSE composite closed near its 50-day moving average. The S&P 500 ended just below the line. The Nasdaq and the Dow finished well above their 50-day averages.

 

For this covered call investor following in the Stock Market's footprints has not made stellar gains thus far in 2007 - but like I say most of the easy money is made off the bottom in the early months of each new market rally.

Previous gains are methodically preserved. I know if I was managing a huge fund - this would be key!!



Anyway up 12% isn't too bad. Holding onto that and any further gains once the market tanks will be...priceless!?!

The same positions at my website are in my C2 account. Going forward I can only replicate past results (in relation to the market i.e. Nasdaq).

At least the appearance of this Fund looks fine - with a 4-6 stock portfolio? Easy to manage, low risk and as I've said...heady gains. Only time will tell what I'll do from here with general/limited partnerships, etc.

One month stacks up to two months on top of three months with past results...can easily foretell how this manager will progress 6 mos. to 5 yrs out.

Still no feedback regarding more interesting fund progressions for mid- to long-term projects like mine to compare. Oh...and I did log the naked put price to see how an 'unwind' affects my account.

b 1000 POZN @ 17.6, s (10) Jul 17.5's @ 1.15.

naked put price $1.00 for the Jul 17.5's.

It's cool when you don't even care if this and other positions get stopped - or if the market corrects or whatever!PayS

Besides, only 50% vest up til now this month means...I can move my fund up another leg like the last (see end of chart) by selling covered calls - to make a 12% YTD into 16% , but if we get a sharp reversal/breach of support from the major averages a bit more in losses would occur upon unwinding at "breakeven".

So for now we phase in - as the market allows. Gilbert