Tuesday, April 22, 2014

2014 Trading Update

It has been a hell of a year to start my trading for 2014.  After incurring a net lost in January, I'm off to the races and have surpassed last year's gains at this time.  What is even better, is that I have been able to keep my accounts at all time highs.  Which means that I have been beating the markets, which is not easy to do.  Most professional money managers never beat the averages, but this year might be my year to do just that.

I am averaging $7098/month and a win rate of 81%.    While my win rate is slightly lower than last year, my average per month is significantly better so far.  They say in trading even the worst stock picker can be a successful trader if they employ risk management and minimize losses.  So that is my goal this year. My goal this year is to minimize my losses and just be consistent.  My target profit is anything six figures.  If I could have contained my huge losses last year, it would have been an amazing year.  I had a few trades really blow up on me and that costed me dearly.  If I can manage to fix that, I should be well on my way.

Wednesday, April 16, 2014

US Airways Twitter post on TMZ Live

US Airway tweeted a picture of a naked female with a model 777 plane inserted in her vagina.  TMZ Live talks about the incident and why the employee isn't being fired.  I give my comments at the end of the show.  Warning while the original broadcast was edited for TV, the below video link contains the actual picture and may not be suitable for all views.  Viewer discretion is advised.

Tuesday, April 1, 2014

Is The Stock Market Rigged?

60 Minutes had a show about the stock market being rigged.  It Interviewed Michael Lewis and he discovered that High-frequency trading (HFTwere front running the market by using direct feeds to capture buy and sell orders from Exchanges and would buy or sell ahead of a large order, forcing anyone to have to pay higher for a stock, because the HFT purchased the supply a head of them.  CNBC had Lewis on there show a couple days later and here was the snippet.


The debate centers around direct feeds and the SIP, Securities Information Processor .  Apparently HFT have direct feeds to the major exchanges and they can see market order before anyone else.  Where everyone else only sees orders on the SIP, which is 'slightly' slower.  So using computers, a HFT algorithm can see your order come in via the direct feeds, then buy up all the ask and sell it back to you for a grantee profit.

So are the markets rigged?  I say no.  The slight speed advantage that the direct feeds have over the SIP system is measured in milliseconds.  For a retail investor, they don't care about your tiny lot orders to buy 100-500 shares.  The HFT is really trying to get ahead of the large lot orders that Mutual funds and pension funds have to transact.  The 5000-100,000 share orders, where a one cent profit means $50-$1000.  Do this a few hundred times a day and you made some real money!

So don't worry about the current news story of the week.  The market has never been better.  Spreads are smaller and commissions are lower. So its easy to make a profit then ever before.   It is still tough to trade and make a profit, but that is the trading business.  Don't blame it on the system, blame it on your self.  Once you figure out the system, then you can make money.  I'm living proof.  Problem is that once everyone else figures out the system, the system changes, so you better learn to change with it.

If you are still concern about someone front running your order, then just route your order on the IEX Exchange.  They add 350 microseconds of latency to HFT, by adding a huge spool of fiber in-front of there computers, so the HFT orders arrive at the same time.  The CEO claims that after he setup his own exchange, he found that he could hit any bid price and it would execute, where before the orders would just disappear.

Wednesday, March 26, 2014

On TMZ again! about Riff Raff and Katy Perry

Got on TMZ again on 3-26-2014.  Riff Raff gets a date with Katy Perry and talks about it in front of a bikini babe, who apparently doesn't understand English.  The bikini babe just stands there as Riff taps her ass and he talks about his date with Katy.

Friday, February 21, 2014

Tasty Trade Appearance

Got on TastyTrade again 2-21-2014, we talk about Delta, Karen the Supertrader and naked PCLN straddles.