Old Faithful vs Treasure Island
With the recent down turn in economic events my day trader hat has come back on full swing and with more zest than ever. I've always been a part time market trader keeping an eye on what I felt was next.
Its that aspect of newness, it attracts me, what will be the future. In the market right now its scattered. All the players are on the scene but this big boat called America has sooo many holes in it.
We've bred a culture of spend beyond your means and its coming back to bite us hard. The government is breaking out the blank check book and the bailouts begin one after another on and on and on. Meanwhile you mean, and that guy over there, well take blue pill bud cause we gotta face up to the reality that we only spend what we can afford- yet thats not the example our governement is giving us.
Sub prime, big auto, financial f'ck up, interest doom paradox here, there is some goodness in this down turn. Stocks are cheaper than ever. Course if you didn't get to a position of cash before mid September then you're staring at some downer days. If you do have any cash, gambling cash that is, go and play.
Twitter is the new Bloomberg for stock pulse love. You can follow a handful of wise cracking, wild hillbillys trading away ever minute of the day. Learn from them, tap into what they follow, where they jump, where they turn. Doing this in the past month and half has made me a much better stock nut. Add daily wisdom from ColoradoTom and playing on my own market hunches my fun portfolio is up.
For awhile I've been calling the current market a casino on fire. Traditional rules or logic just doesn't factor into this market. America is griped with fear, fear of the pending year, the new president, the hard road to clarity and bracing for the worst. Uncertainty and blank checks run rampant, all the while the market is in a constant state of up up up.... ahhhh down.. down.. down. Bottom here? Over there? Maybe here?
There are two positions in the current market. Old Faithful and Treasure Island
Old Faithful is long, go long, go deep. Load up on killer deals before September 2008 ever happened. Thats a huge laundry list of stocks. Just about everything. Now break it out into essentails for each market sector, energy, technology, emerging, biotech, medical, etc. Pick 4 from each sector. Stare at charts. Buy, bury and never look at them again until 2012. Seriously, never look at them again. Don't be tempted. Old Faithful will always be there, like a loyal dog, ready to play, waiting endlessly. Wait. Do not peek inside mid 09 or in mid 10, ignore, never look at them.. until 2012. Then party.
Treasure Island takes me back to Vegas. Every 4 hours or so that pirate adventure unfolds at Treasure Island. Pirates, music, actors, mayhem, pyrotechnics, guys swinging around, YARRRR. Short your way to some cash. Leap on the market dips, learn how to trade options and play to win. Study the stocktwits, follow their daily movements, ride along side but be warned there pirate, there is no honor amongst thieves, if you take a days gain, sweet pocket it, and come back for more. Don't expect truth in everything you see and don't be spooked by the octa box on cnbc or the ravings of a mad men and his money. Keep your eye on the trend. Listen to the news, factor it up, follow, short, buy, sell. This is money you make, pocket, and play. Its not stable, you can lose your shirt in a second but wasn't that show fun to watch?
A Treasure Island play realistically takes part of your brain everyday. Everyday while you do whatever you do, you've got that pirate show playing back. The octabox never dies, the pundits ramble endlessly, speculation on tomorrows promise and doom are intermixed. You figure it out. Look at the market, digest the news, follow the twits and see where the hive is going.
An old faithful play is fire and forget. Its perfect if you don't want to see the bad news, and seriously for it to work, you can't afford to tune in. You can't be tempted to tune back into Treasure Island, you risk losing out on old faithful.
You probably should have both of these positions, which makes it hard not to act and try and correct what could be happening to Old Faithful. The idea remains however, and people are doing it now. Some are risking the day to day on hopes of massive gains in this most opportune time to do so while at the same leveraging what they know will likely be- that old faithful, that will be true once the mayhem settles.
Even if you don't have cash, get motivated. Play a stock game, CNBC has one going on right now and there are plenty of others. Go dabble and tune in, before ya know it you'll be cursing yourself for not getting it, selling, buying, etc, and now you got the bug. But tread carefully.
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