<p>The negativity is intermediate and longer term.</p>
<p>Much of the discussion in the short term is whether we get a bounce into the end of July. Bears keep getting burnt because of central bank talk but I don’t think that there will be a sustained rally without some actual action. And even then, it might be a moonshot and then back down to earth.</p>
<p>The expectation is that Bernanke will scold Congress telling them that they have to do something and that there are limits to what the central bank can do along with the statement that the Federal Reserve stands ready for action. Basically, the same old story for the last few months. The Federal Reserve, up to now, is all talk and no action. Traders aren’t going to fall for that forever.</p>
<p>No the traders aren’t going to fall for that forever but apparently the machines will. It has been obvious ever since Bernanke has been in this role that he isn’t Greenspan. He doesn’t muddle his words. He’s very clear what he plans on doing. Apparently the algorithms that the machines employ are not sophisticated enough to interpret simple English - only headlines. That’s the only explanation I can come up with as to why when he speaks lately that the market goes up before the words come out of his mouth and then drops afterwards. Any human knew nothing was going to change the last few times he spoke.</p>
<p>I think that even the machines will have problems - there are only so many dollars to take from others but then the machines have to battle themselves.</p>
<p>The nice thing about being an individual investor is that you can just sit and do nothing for long periods of time. Professionals need to make money regularly for income.</p>
<p>PBA
Do you know what the difference in price is between the best price you received and the worst?</p>
<p>Mauldin…I agree that he isn’t a help with short term trading. I am tired of the guys who pretend they know something they don’t and are always trying to sell themselves.</p>
<p>Merkel doesn’t know how things are going to turn out. </p>
<p>“The nice thing about being an individual investor is that you can just sit and do nothing for long periods of time. Professionals need to make money regularly for income.”</p>
<p>I agree. When trading is your sole income, you can’t trade the same as when you have income from outside sources. Professional traders, if they are totally compensated for performance can be under tremendous pressure. And those that are trading for their own accounts…even more pressure.</p>
<p>That is the main reason I took the gig I did. I got tired lf the ups and downs of trading for myself. The losses get really old.</p>
<p>There is a big difference between having your nut covered and then trading and having to trade for your nut.</p>
<p>Anybody over 30 who wants to trade for themselves, for their income, better have their nut covered.</p>
<p>I don’t see him talking about short-term stuff that much anymore. He coined the term “muddle-through economy” many years ago and he’s been generally correct on that. On his email today, he talked about the economies around the world in moderate detail and I found it useful because I invest in some of those countries from time to time. He described their challenges and their challenges ahead and that’s useful information to me. It provides a nice global backdrop for the next few years. It’s something to keep in the back of my mind overall. Sometimes it’s useful in the forefront if I’m investing there.</p>
<p>On folks trying to sell something: some of these guys are good - I like to listen sometimes and then see how well they do. If they make a lot of good calls without making a lot of bad calls, then I’ll pay more attention. I might even subscribe. If someone provides a useful service, I’m happy to pay for it.</p>
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<p>They can but they don’t need to.</p>
<p>There are times when the market is difficult and takes more effort to make money at and sometimes you don’t want to put in the effort. During those times, you may just want to sit things out. The professional has to make their income for themselves or their firm to pay salaries, offices, etc.</p>
<p>I’ve been through many trading days where the market falls for the entire day. If you put in a limit order on one of those days, you won’t get filled. If I sell at market, I am done and out. Peace of mind and I can get on with my day.</p>
<p>R U L E # 4
Capital is in two varieties: Mental and Real, and, of the two, the mental capital is the most important.</p>
<p>You basically insulted him. I don’t particularly see any reason for doing that in a discussion about what he is saying. You can judge the content of what someone says but the backdrop is not particularly useful. I think that everyone is aware of the problems that he brought about and his background. That doesn’t mean that his charts or his analysis is bad.</p>
<p>I still don’t send market orders to sell 10,000 or 15,000 shares or larger in a stock that trades barely 150,000 shares a day…and the bid is 100 shares.</p>
<p>I also do look at my fills.</p>
<p>The fills give me information. Imperfect information, but I will take it.</p>
<p>I can’t think of a situation wherein I would put a market order. If that ever happens that means I’m scrambling, panicking to get out of a position. I hope I don’t get myself into that spot. Now that I think about it, what if I bot FSLR last year @$139 then it dropped down to $99 to $79 then I would probably put a market order around that time. The market order px that time would be better than its current px $14. Unless there was another flash crash that time and just my luck the market px was $0.99. So, I guess, I would never put a market order.</p>
<p>“You can do it…but I am telling any of the 7 people reading this thread not to send market orders of 10000 shares in a stock so thin.”</p>
<p>Honored to be 1/7th of this semi-exclusive club. Good warning. I rarely use market orders. Can’t even remember the last time when I placed one.</p>
<p>The “wisdom” billboard at a local auto repair shop says, “Do not worry about stock market, invest in family and friends.” I do not like the sound of that. Sounds too much 2008ish to me.</p>
<p>“Mauldin…I agree that he isn’t a help with short term trading. I am tired of the guys who pretend they know something they don’t and are always trying to sell themselves.”</p>
<p>Please folks, let me know of somebody who writes or talks about short term trading who is consistently correct (except maybe here). Besides even if somebody is consistently wrong, they can still make a fortune. Most who write or go on shows are giving an opinion of what should happen from a rational standpoint which means long term. As all know, the market can stay irrational longer than most of us can hold onto our nuts.</p>
Good warning. I rarely use market orders. Can’t even remember the last time when I placed one.</p>