Trapping the shorts and longer term

Posted on March 13, 2008
Tags: Living, Day Trading |

What a wacky action in the market yesterday. After a nice run since end of Feb the morning short trap whipsaw cost me a couple of Rs. I saw OONR7 had a similar experience in the morning. It’s just one of those days.

Looks like the Fed will do almost anything and everything to keep the market and financial firms from crashing. In the short term it doesn’t matter to me if it works and the market rises from here or falls some more. My long term and lazy ETF portfolios have suffered declines but with a time horizon of decades on those, and their size being proportionate to a retirement fund I treat major declines as opportunities to add to them rather than a cause for concern. Every quarter or so I split my trading income into 3 parts: 1. a part I withdraw to pay for day to day expenses, rent etc. 2. a part I keep as short term savings in cash (not just in USD) and 3. a part that goes back into long term savings, mainly ETF portfolio. The size of the parts depends largely on how well I did each quarter. I wish I had started the lazy portfolio earlier in life but lack of understanding and sometimes dry spells in income meant it took a while to sort those things out. Better late than never.

Comments

2 Responses to “Trapping the shorts and longer term”

yo on March 14th, 2008 6:17 am

Good job on the savings!

They’ll be callin ya a rich ol fart one day!-)
eyal on March 16th, 2008 5:34 am

Yo - lol, that one day seems very very far at this point :-)

Leave a Reply