Mikey's Corner 08

DRYS 54.29 is oversold and should bounce if I bought it I would be a seller at 63-65

If you asked me why I bought LEH ...my response would be because I am a dumb ass

Brook I am holding mine but my position in that is only 500 shares Suggest you you reduce yours to 500

My method is to take small positons in stocks that I am buying against the trend. Particularly those that are in sever downtrends

      It is tempting to go for broke on these type of situations but the odds are against you. My competative nature is to fade the action so the stronger the hit in the past the bigger the risk I would take. Now days I will take a short but I keep it very small.

      As I mentioned 90% of my money is positions and 10% is trading. No one trade is going to be more than 10 % of my trading money and when I do things like this I will buy 3 times . I have bought LEH 2 times 7.79 and 4.52 ...250 shares each time I may buy again.

      But I will not put myself in a position to get nailed on a trade where I am going counter trend. LEH is just such a trade. I keep it small because I have been wiped out on this kind of thing in the past and have learned my lesson.

 

      When I bought at 7.79 I bought the SEPT puts for .85 yesterday I sold those puts for 2 I have no hedge now and will buy another 250 or 500 but that is all I am going to put in it.

      FNM I bought 500 at 6.72 and added on 2000 yesterday at .75. I thinks this one will work out in the next 3 to 5 years so I am going to make it a position trade but this money will be dead money for quite a while. I am going to do another 5000 at .50 and 10000 at .30.

     When you are going against the trend you have to be very careful and that light I will use margin but never in these types of situations.  The DIG trade is an oversold buy on a stock in a downtrend I am also not going to go positon or go big on this one either .  I have only 200 shares on this one it is just a trade no margin. GM is in a downtrend it is more of a trade but if it rollsover and dies I can make it a position trade. I only have 500 shares here.

       On positions like NSC UNP CSX I will take them on and get big if they will give me the opportunity But I do start small there too.CSX now 200 NSC 200 UNP 200 If they go higher I stay after them because I believe they are going to do the same thing that the oils and commodities did. But through the years I have learned that for survival I need to begin each trade small and add on if the opportunity presents itself.

    Generally on trades I have a stop particularly if I am going against the trend. So pay attention to those stops I you think you want to enter  trade with me.

      In a position I take them on a little bit at a time until I kick their ass.

         In summary, Watch my explaination of what I am trying to do. Look to see if is a trade or a position. If is a trade watch for stops. If it is a positon start small usually 1/4 of what you commit to the trade on each level. You can see that I am commited to have 400 shares on the Choo choo's I have 200 on each now. 

          It is important to know that under no circumstance will I let any situation take me out of the game.

 

 

 

 

Brook if you understand the above post completely let me know if you have any questions please ask them now

that was vey helpfull.  i understand all except I dont know enough about options to get involved yet  so I think its better that I just watch them or maybe try buying them at the min allowed just to get my feet wet.

  last week I bought 1 FCXIP @ 2.30  just to get an idea of how they move  ..sept 20 th date   today 1.15  but that is least of my problems  lol

Looking to sell the DIG at 76-78

when you buy DIG  do you put a stop on it or just watch and decide when to sell on a down move?

Stop on DIG  is at 60. I usually use a 10% stop on my trades

question  when you short CSX @ 56  what stop limit would you use?  if any

You can see what I really believe will happen in the long termby the positions I take

not very optimistic ?  I still think people will look to put money in gold at some point  should I take a short position on the CSX  UNP or NSC  at this point or wait for something else ?

I can't speak for you because I don't know your situation I am only telling you what I am doing You have to decide what you are going to do based on your circumstances. I am not going to manage your account.

I am not asking you to manage my account , just advice and I never blame anyone if I listen and it doesnt work out.

  My circumstance is that the money I am plying with will not change my life if I lost it all, I am NOT looking to do that but I am trying to learn and I respect your advice

If you want to get a manager I can refer you but I am not registered and I am not a financial advisor and am only sharing my trades with this online community.. There are no guanantees here and this is my money I am trading here. I am prepared and capable to take losses if necessary and am not implying that I am anything more than an experienced trader and as such I can make mistakes.  At this point my posts speak for themselves I am not recommending anything I am merely posting my trades warts and all for everyone to see. OK?

On my positions I do not use stops. It is like going war I slug it out. Sometimes it takes years and I will gut it out

On positions I like to use the 50 and 90 days averages to put trades on when I have the trend on my side.

how long have you been living in the Mariana Islands?  must be very nice there? 

   do you have someone to refer me to in the new york area?  I have pension money that I need to do something with ,just ended a defined benifit plan I had in my buisness and have been talking to a few, as you see that is not my expertice and wouldnt try to do that on my own.

Orders to add on to my CMI short at 65 will keep that price for another week then drop it if I have to

Fot what its worth I will be buying LEH on the close just 250 shares

Go to Mikeys space I will give you the name ...