Chen my friend, be very careful, market makers can remain irrational longer than you can remain solvent - you playing a rigged game. Here what happen to other smart guys like you and me that tried to bring logic and honesty to rigged casino gambling house:
palmbeachpost.com
WEST PALM BEACH — Won Sok Lee and John Kim were gamblers at heart, poker players who risked it all at the casino tables in Las Vegas.
Win big, lose big.
See if their name was luigi or vinny, maybe thier corrupt italian mafia friends in new york take care of them - I guess italian boys no like melting pot and burn the asians spicy - like general tso chicken
The two men, managers of a West Palm Beach hedge fund investment firm called KL Financial Group, ran their business with the same swashbuckling style.
They forget GOLDEN rule, gold dragon martial arts style not win you game, the man with GOLD make the rules, it WHO you know, not WHAT you know, they forget this and not buy Godfather enough Pizza
And in that game, they lost — perhaps as much as $300 million — stinging a list of investors who believed the two would beat Wall Street's odds and deliver huge returns. The list is believed to include some of Palm Beach County's richest and best-known residents.
For example, KL Financial even bought short the stock of Google, the Internet search-engine company and one of the high-flying stocks of 2004.
According to the former trader, Kim, convinced that Sir Isaac Newton had it right, shorted 88,000 shares of Google at $130 a share, meaning it had to fall below that price for the hedge fund to start making money.
He forgot to read his history, even Sir Isaac got caught up in the bubble of his day and lost money - same problem - he thought it was WHAT you know and used logic - didn't realize it is WHO you know and to have friends with market makers and brokerage houses and buy lasagna for Mario
It didn't. In fact, Google went far the other way. Yet, Kim increased the firm's short position in Google and reworked it so that the target price was $160 a share. The strategy eventually put KL Financial in position to make a profit. But instead of pulling out and taking some profit, the firm hung on, desperately trying to cover earlier losses.
Google ultimately rose beyond $200 a share and closed Friday at $185.90 a share.
PS I shorted GOOG back when it passed 160, I still down :( |
