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| Posts | 40 |
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| Alias Born | 09/26/2010 |
Wednesday, October 06, 2010 9:56:33 AM
Yes, I post on SA for few months and had 140 followers, deleted previous profile cuz too much garbage was following me, asking too many questions. Some thought I am penny stocks pro-motor 
even if all my trades had description and I always said: DJIA at 11,000 is a peak for the next 30-40 years, my major position with 400% leverage is short Dow futures, I reinvest profits in special situation stocks like CLYW cost free, but then market went down to 10,000 and of course most of my stocks went down as well, but folks thought this is kind of advise to buy my stocks when I always described: I am hedging long equities with short index futures and this is geared net short strategy, but it seems people don't know what pure hedging is, they think only long is a way to make money when in fact this is a way to destruction.
Simple example how to hedge CLYW and make money possible both ways in the uncorrelated strategy:
Buy 50,000$ (SDS) at $28.50
Buy 50,000$ (CLYW.PK) at 0.10$ (or $1 it's the same thing)
In case CLYW goes to $0 and market in few years goes down 50%, SDS pays double, total return = even.
Not bad for a 50,000$ loss on a stock trade.
even if all my trades had description and I always said: DJIA at 11,000 is a peak for the next 30-40 years, my major position with 400% leverage is short Dow futures, I reinvest profits in special situation stocks like CLYW cost free, but then market went down to 10,000 and of course most of my stocks went down as well, but folks thought this is kind of advise to buy my stocks when I always described: I am hedging long equities with short index futures and this is geared net short strategy, but it seems people don't know what pure hedging is, they think only long is a way to make money when in fact this is a way to destruction. Simple example how to hedge CLYW and make money possible both ways in the uncorrelated strategy:
Buy 50,000$ (SDS) at $28.50
Buy 50,000$ (CLYW.PK) at 0.10$ (or $1 it's the same thing)
In case CLYW goes to $0 and market in few years goes down 50%, SDS pays double, total return = even.
Not bad for a 50,000$ loss on a stock trade.
When we hang the capitalists they will sell us the rope we use.
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