Thursday, January 22, 2009

Anatomy of a Trade














Warren Buffet recently stated that, you only know who was swimming naked when the tide goes out. But some people just enjoy the nudity. I guess it must be fun for some to remain uncovered (pun intended). I for one, prefer to keep my trunks on..

The movement on the ticker entices a trade. The risk capacity dictates the size. The ego maneuvers the time duration. The stop loss is forgotten in the book.
The beta attracts, it titillates and it destroys. The joy in the volatility subsides when the margin calls you. The ride is over, the wallet is empty. Its time to move towards sanity.

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