Trailing a Stop in LBTYK

Added on by C. Maoxian.

I sent out this short set-up in $LBTYK for April 27 to everyone who signed up for my free Daily Trading Idea ... sign up now if you haven't already done so.

Here's the image I sent in the email ... I checked my records and I did short $35.10 at 2017-04-27, 12:09:35 on ISLAND, no doubt by accident after transposing the numbers ... I do this at least ten times a day, make trading mistakes I mean ... confidence-inspiring, I know).

Seven days later it looks like this:

So the question is what do you do when it gaps below the target? I'm going to cover half tomorrow morning and trail the stop above today's high of $32.54. I can see this thing going down to $29 or even $26, but I want to take half off the table now. If you have any better ideas, I'm eager to hear them (on Twitter or via email), and I will share them in turn!

Initial risk was 44 cents and the target was over $2 away so the risk/reward was 1:5, and if I cover near where it closed it will be closer to 1:10 ... a "ten bagger."

Sign up for my Daily Trading Idea today, it's free!

UPDATE: @DavidTaggart suggested moving the stop to the high of two days before every time it makes a new low. @Contrahour suggested an Average True Range based stop, which is a little more complicated, so I'll go David's high of two days ago for now.

Make a Paper Boat, Light It, and Send It Out

Added on by C. Maoxian.

Mink's bassist sings the Spanish portion ... I always wondered about that.

I also like to say to the rats in the locker room, "Hey Mr. Gym, I can see the shape you're in..."

Willy DeVille (August 25, 1950 -- August 6, 2009) was an American singer and songwriter. During his thirty-five year career, first with his band Mink DeVille (1974--1986) and later on his own, Deville created original songs rooted in traditional American musical styles.

Sites to Worship Heavenly Bodies

Added on by C. Maoxian.

I read Ian Johnson's piece, My Beijing: The Sacred City, with interest since I too first lived in Beijing as a student (in 1991) and then spent ten years there (between 2005 and 2015).

Some excerpts with my comments:

"I studied Chinese language and literature at Peking University from 1984 to 1985 and biked over to [the Ritan park] area because it had become the country’s chief diplomatic district and one of the few places where homesick Westerners could buy chocolate and postcards."

Nutella. That's what we bought (and hoarded) in 1991 ... only available at the Friendship Store. 

"I came for the croissants, but stayed for the tree-lined streets and the Temple of the Sun."

My son went to school at Fangcaodi, which was originally set up for diplomats' kids. When we would ride the electric scooter through that tree-lined area every morning, I'd tell him, "there are no other streets like this in all of Beijing."

"I ended up moving into one of the diplomatic compounds and the neighborhood became my home."

He doesn't say what the rent was in 1994, or how it changed over the seven years he lived there. I'm sure today it's thousands of dollars a month, even for a small place.

"This was a time when Chinese parks rarely had grass. Instead, the hard-packed dry earth of arid Beijing was raked by crews every few days. It was odd but had an austere beauty that set off the ginkgo and persimmon trees that lined the paths."

Parks in Beijing still have no grass and there's nothing beautiful about that hard-packed dry earth ... Johnson is clearly a glass-half-full kind of guy. To get that one photo with green grass in it that accompanies the article must have been a real trick shot.

"But this need for green space clashes with another trend in China: the surrender of public areas to the rich."

This is true. I used to visit Longtan Park, which was near our apartment, and goons with earpieces used to chase me out of areas that had been "privatized." It really got my dander up, but there was no way to fight back, 没办法.

"[There are] high-end restaurants, an exclusive social club, a German beer garden, a yoga yard, a strange antique furniture store ... commercial activities that don’t belong in this great old park"

These "money-spinners" have been there for ages and they're on the periphery; I saw no harm.

"I even listen for the screech of the tacky children’s amusement park with its half-broken choo-choo trains."

Those "tacky" amusement parks, with their derelict rides, which can be found in all these sacred parks, were some of my favorite places ... and my kids spent many hours in them (at 30 cents a ride).

"But over the past decade or so, Chinese have been searching for meaning in their lives."

Now that they can afford to, lol. 

"The admission fee of $6.50 [to the Daoist Temple] does keep out many people...."

45 kuai is a pretty high bar, it would keep me out for sure. 

"Beijing is still the capital of an authoritarian state. Beijing’s message is still the state’s message, perhaps not perfectly but still audibly."

True. But old Beijingers are a pretty rowdy bunch and are quick to tell you what they *really* think, if you're a foreigner who speaks Chinese, like Johnson does. 

A Little Piece of Tail

Added on by C. Maoxian.

The great Albert King ... Drowning on Dry Land ... words of wisdom for young men. 

'Years Gone By' - [May, 1969]

Dirty Dozen, Long Only Portfolio, End of April 2017

Added on by C. Maoxian.

I introduced the Dirty Dozen portfolio earlier this month. I track a dozen popular stocks using a *monthly* trend following system. It might be interesting to know my take on these stocks if you hold any of them. I did settle on Chipotle as the twelfth stock, which readers overwhelmingly nominated. 

  1. Amazon
  2. Amgen
  3. Apple
  4. Chipotle
  5. Facebook
  6. Gilead
  7. Google
  8. Netflix
  9. NVIDIA
  10. Starbucks
  11. Tesla
  12. Twitter

There are no changes this month, but NVIDIA is at an interesting point ... it's the second longest-held position and the biggest winner ... it will be telling when the monthly trend finally turns down.

ETF Trading Portfolio Update -- May 1, 2017

Added on by C. Maoxian.

Taking a quick, large loss in the XIV and reversing short (by getting long it) ... and scratching my Euro short and getting long (by selling it short).  I know it's confusing, I should change the terminology in the spreadsheet and will try to remember to do so next week.

Looking for Love in a Looking Glass World

Added on by C. Maoxian.

The great Bryan Ferry, not diminished by the pencil mustache, in 1976: 

Roxy Music performs their classic for a Swedish crowd. Roxy Music is an English art rock band formed in 1971 by Bryan Ferry, who became the group's lead vocalist and chief songwriter, and bassist Graham Simpson. The other members are Phil Manzanera (guitar), Andy Mackay (saxophone and oboe) and Paul Thompson (drums and percussion).

Summary of Interview with Trader "AT09"

Added on by C. Maoxian.

Here's my bullet-point summary of this interview with a trader named Alex, "AT09"

  • 22 years old, trading for three years
  • Found penny stock chat room, doesn't say which, Sykes' probably?
  • Bought "breakouts" and got "dumped on," lost all his money
  • Sold his car rims to fund his second account, total $2,000
  • Avoided "Pattern Day Trader" rule with offshore account
  • Found new chat room via Twitter, "Investors Underground"
  • Discovered that you could sell short, "blew his mind"
  • Hooked on shorting after making gains in "VVGL" [since de-listed?]
  • "Intoxicated" by making money on the short side, started shorting indiscriminately, bad idea
  • Junk companies gapping 100% in summer 2015, "BIOC" "ITEK" "OGEN" "BLPH" "NVAX"
  • In the right place at the right time, shorting junk, summer 2015
  • Doubled share size from 500 to 1000 shares
  • "DRYS" ... company is "complete dogshit," and "toxic"
  • Made ~$66K shorting "DRYS," big size and patiently held "long term"
  • Account grew to around $10K when he "started finding success," wired excess out
  • Once you increase size, you can't go back, taste of large gains too intoxicating 
  • Made $100K+ in one day: Short "DCIX," "ESEA," "GSL," "SINO" (long and short)
  • Can't put size on in "shitty, no volume stocks" ... don't rush it
  • First chat room, people were "bullshitting around" [not unlike the poker table]
  • Hard to find people who are legit, actually making money [ain't that the truth, Teresa]
  • "IPCI" "MCUR" made multiple thousands trading these in a day ["MCUR" since de-listed?]
  • Value of watching people with different styles, day traders vs. swing traders
  • Seeing how people scale into a trade (on DVD they're selling) is invaluable
  • Made $66K on "CLTF" short, summer 2015 [since de-listed?]
  • "CraigTrader" taught him to sell/cover half, hold half
  • Flipped a house to gain real estate experience, made $30K, took six months, didn't enjoy it
  • Made $100K in July 2016 when "small caps came back," doing what he loved
  • More of a position trader now since helping with his Dad's small business
  • Not a day trader now, can't be in front of screen all day long
  • Making more money as swing trader than as a day trader
  • Doesn't want to be stressed making $1,000 a day, doesn't want to force things
  • Patiently waits for "niche" plays, takes large position, patiently holds
  • Wants to hold for weeks on end, save his mental energy, not spend it on day trades
  • Follow him on Twitter: AT09