Revolutionizing My Returns


The Shark
October 9, 2007, 5:04 pm
Filed under: "Definitions" | Tags: , , , , ,

So there is this element of my trading I like to call The Shark.  I call it that because it is just that.  When I get into the “water” (the bid/ask/last amounts) of a trade, or when I have done my research, made my buy marks, checked my values and am ready to trade, I sometimes turn into a shark. 

Sometimes things look just as they should on value and I buy within 10 seconds of looking at the water.  Other times, it looks like a price I want to pay is below the surface and if they are not that far off, I turn into a shark.  I get in a mindset that I can splash the water enough to drum the price I want up to the surface.  About 25% of the time it works.  Is the price moving because of my actions?  Probably not, but the shark would argue differently.

There are serious troubles with this part of me that likes to surface.  Some of the time (50 - 60%), my actions cause the price I wanted to sink further below the water.  The shark believes this is okay because that amount will drown down there and end up floating back to the surface.  He thinks this because approximately 2% of the time it does.  Again is it a result of the shark’s actions?  Probably not, but even right now he is inside me shaking his head at us for doubting his logic like an off mike commentator on a CNBC split screen debate.

As for the remaining percentage of time (you can do the math for the number), I am but a guy swimming in the water with a shark fin on my back being eaten by another shark.  Splash Splash!

Trade Well.


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