Warren, Mondoman, or someone talk to me about this concept please--educate me as somewhat a beginner.
Wouldn't the "ideal" moneymaking system be to ride ZITL up and then when the "back" is broken out of the stock as it probably will following it's predecessors THEN short it and ride it down? Am I missing something? Of course I have nothing to prove or ego/or anything. I am in this all to make money. Now is it that you guys are shorting "against the grain" to be able to get the short shares--cause my brokerage just laughs when the question of acquiring ZITL shares for shorting show up. I mean I don't understand this acquiring ZITL shares for shorting any other way.
As I have been trading (I am not a regular investor) I read alot of things from market wizards and such to glean ideas on how they work but also how they think. One of the most interesting ideas was from a highly regarded successful woman trader who stated that she learned to cut losses short by deciding to get out of the mentality of "being proved right in the end"-- by trading that attitude/mentality and that is I believe all it is--a decision to think this way--to "being right RIGHT NOW!"
I have since come to that belief for myself. I can see making money on the way up and then on the way down. I don't have to say--"see I got the last laugh" or "I was right in the end"--I would rather say"I was right on the way up and profited handsomely" and I was "right on the way down and profited handsomely".
Now, Mondoman, I think you are fascinating and you are young and full of guts and conviction and daring and must have deep pockets and I find that all great. The fact that you are "so young" and doing this is even more amazing. But I have to tell you truthfully, unless I don't understand this shorting thing (and that is quite possible and that is why I am asking to be educated)--and that your purpose of collecting more short shares now is cause when the time comes for the crash you may not be able to get them.......well, if it is not this reason than I would have to find you, to my humble opinion as irresponsible in not capitalizing on the way up and THEN capitalizing on the way down. But then perhaps trading is too active for you but to perhaps ride up 30 or more points in the red and then to have to wait for it to drop 30 or more points just to get to the money making part seems like a lot of wasted capital tied up, money making time, energy, possible losses, and just unnecessary angst for the potential of "I told you so" and some money making. I mean I would like to pit the profits from this trade against the time/energy factor of "tie-up" and maybe say--"yes, you made xyz$$$ whatever at trade end" but you COULD have maximized during this same time period in a much more highly maximized return way had you not been tied-up in this going the wrong way trade. If this trade lasts for what?--2 months? I would have to be l00% responsible to ask myself what I COULD have made with my time/energy/capital during that period that I DIDN'T make and ask myself how often I am willing to get into this position a year and truly WHY am I doing this? Even if you spent time in another stock/s during this time.
As I say, Mondoman....I have a certain admiration and respect for you on several levels.....but not on the "maximizing" level unless there is that aspect of acquiring shorting shares that I am not aware of. I think with my limited understanding that "imagine what Mondoman could do if he was a maximizer"!! --he would light up the skies!! Perhaps you are not interested in maximizing opportunity and your goal is much more mellow and less intense.
So the several issues here I would like to recap and find answers for would be:
longing/then shorting
acquiring short shares
maximizing
ego--last laugh versus laughing all the way
what about the 2 months of being tied up?
Thanks for any education/edification on these issues. I always aim to evolve and sophisticate but I find these issues puzzling and troubling.
Autumn Henry |
