80/20 is a very different breakdown to 120/60. The first underperforms the market long and has insufficient downside protection. The second roughly matches the market long and has sufficient downside protection (assuming they can pick their shorts well).

Also, when you sell stock you receive money. Do you invest it long or hold onto it? The point of a hedge fund is to invest, so...

The benefit of reducing variance is that it lets you increase leverage while maintaining the same risk. If you go through that trouble and then don't use the leverage, you'll under-perform, since that reduction does come with some cost.

In theory it will allow them to take more risk. A lot of funds just underperform on both sides but there have been a few that have had a lot of success with long/short strategies.

Think DGAZ was interesting to try today, swinging it through the weekend with contracts expiring. More educated gamble than anything else.

Got to looking at AMZN acquisitions (lifetime). PETS came to mind. I saw one article describing how PETS bears have many things to worry about including an acquisition. Any thoughts or news on AMZN buying PETS?

KEM buy stop out. I like this long setup if 20s print. PEG ratio 1.06, decent trailing PE. bull flag.

BOOM!

Best plays for a nationalized 5g network in the US?

Filled. Nice rip.

AMD reports after close. There is a lot of resistance at $14, and I see another buy the rumor, sell the news play. Buying $13 Feb 9 puts after 10am.

Probably whatever you'd bet on if it were a different country eschewing capitalism to become a communist economy.

It won't happen.

Any ideas on the open? Sell off? Buy up? Currently down 0.4% on SPY.

Normally I wouldn't bother asking why is the market down 1% but since it has been going up non-stop for like 15 months now and this is the worst 2 day stretch ever, I have to ask, what gives?

technical selling, risk off before SOTU/EOM, bezos/buffet/dimon launching co-op to take on healthcare conglomerates imo

already rallied back 6 handles in the last hour tho

lol so this was bad advice.


Closed HOS 2 days ago for a loss, I think down 8%.

I've given back a ton of my NAL trade. I have hardly anything in pot stocks right now because I really see a big flush below these levels and it could be the big one that annihilates retail investors and I want to be there for that.

I'm really just focused on energy and weed right now, no real time for the rest.

Am trading way less and have decided to make fewer but larger trades on some of these bigger down days. We shall see how it goes. Did one this morning that went well.

Wishing you all well, this volatility is great.

Picked off WYNN and MCD during the haircut today

today was awesome. vix 15 these days feels like old school vix 20. more days like this, please.

SOTU tonight EOM tomorrow wowee

Likely would have more than 2x my position on the AMD put. Waited for under $12.90 and went long instead. No bueno.

Jk

BOOM round 2!

You totally should have bought VXX

TTWO nice jump today... the assist from EA

Need some advice, Tooth has given me some in this space and it was a good start.

I still do not have the discipline to leave good trades well enough alone. I'm nearly sure it's a greed thing, maybe something else.

This morning I executed the second best possible trades on ACB and WEED at the open. Nearly perfect buy, almost perfect sell on the timeline I was interested in. Made an amount of money that frankly if I made it every 3-4 days I'd be totally happy, specially since it took 20-30 minutes and I can still work on a lot of other cool things in life on top.

My problem is when the chart keeps running 30 minutes after I close my trade, still this many years into this, I can't walk away and accept that I have no edge there compared to my careful plan at the open. I just want more, I often chase more (nearly always for small loses that take a chunk out of my win). I'd also argue that a part of me finds it enjoyable to keep going instead of walking away and going out into the world.

What did you guys do to overcome that? I suppose some of you will be brutally honest. That's fair. I'm thinking once I execute my good trade, I may just have to flat out leave the house for an hour. Just create a new link in my brain.

Depends? It depends on your trigger mechanism that had you enter the trade in the first place. This is one of the reasons I really love TA for short term trading purposes. It has rules. If the rules are sound you will make money following them. If you start coloring outside of the lines it becomes anarchy.

So it depends on what your trigger is to get in and what your trigger is to get out. If they are fundamental or gut feel I have no answers. But if it is technical use a set of rules or at least guidelines and follow them perfectly.

At the top of my trading scratch pad I write the following every day.

Follow the rules
perfect discipline
will be rewarded
Follow the rules

For me this means taking every trade that pops up and holding every trade until the rules say get out and if that isn't working NEVER chase, NEVER cut a trade short especially when stuck.

rafiki,

you are there to pick up the edge, nothing more. i visualize it like shortstacking poker except you dont have to post your blinds or antes. when you see aces, you shove all in and pick up the profit.

that feeling you get of wanting to be a gunslinger with bravado, that works when markets are blown out. not when markets are steady.

if leaving the house improves your mindset, by all means go for it. mid day markets are pretty choppy anyways.

but you are there to make money, and money is edge. no edge, no money. don't be a dumb idiot gambler.