Bank of America Plays Hardball; Citigroup Plays Dumb Jeff Macke Jan 12, 2009 2:30 pm |
![]() |
![]() |
|
||||||||||||
|
Greetings from New York; if taking trading losses was either easy or felt good everyone would do it. As it is, very few people do - which is why, as a born contrarian as well as a natural pain in the arse, I'm more than happy to belabor to the importance of having a sell-discipline in your trading tool chest.
And, since the best lessons involve the educator suffering extreme pain (so you don't have to), let's focus on this week's forays into the Ag plays.
In brief, I got long Mosaic (MOS), as I liked the price action in response to terrible guidance. My price target was $40; my stop-loss was $35. I harvested most of the gains at $40 and dumped the rest on Friday's pullback. Made enough to take Mrs. Jeffmacke to the movies. With Valkyrie and all its campy genius not playing nearby, I delayed the movie and kept trading Ags, this time rolling into Potash (POT). The goal was $90, the stop was $80.
Here's the thing about stops and why you need to stick to them: The Mosaic trade was decent, the Potash trade was lousy. That said, sticking to my disciplines on each trade limited my losses and kept the bottom line of my Ag trades as a whole slightly in the black, if only very slightly.

Putting it in terms that applies to every married man's life: I can get out of Valkyrie by reiterating to Mrs. Jeffmacke that the movie is a story about a 65-year-old failed plot to kill Hitler and stars Tom Cruise wearing an eye patch.
Had I chosen to fight the tape on Potash, I'd be spending the day explaining that Daddy just needs a little quiet time today. Worst case scenario, had I chucked the idea of stops entirely and decided to "dollar cost average" into today's 10-buck drop, I'd be praying for a late day rally so I could avoid explaining to Anne that dog food has all the nutrients a growing child needs.
|
|||||||
|
|||||||
|
|||||||
|
|||||||
|
|||||||
discuss this article and more on the mv exchange |
|
Get real-time options trading ideas from Steve Smith, veteran options trader and newsletter author, plus let him show you the way to cut risk and boost your returns through the strategic use of options. Click here for a free 14 day trial to OptionSmith by Steve Smith.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2009 Minyanville Media, Inc. All Rights Reserved.
| add rss feed | free article alerts |
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
DC
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennesee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Local Guides


















