Replies to post #4494 on NGL Energy Partners LP (NGL)

[jugs]

It is old yet could be useful for those of us upset due to a lack of understanding. I'm assuming the contributor is trying to be of help by bringing others to see that we're in a duplicative cycle and it's not something to be feared---provided we take responsibility for such vicious swings in the market.

Earlier in this year I was suggesting that those of us able to conserve cash do so. I took my own advice although belatedly as I recall. lol Still, I eventually came to realize the importance of preserving capital so as to profit from severe market swings.
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Earlier this morning I received a note from a very good friend who knows as much about the energy sector as anybody here. He seemed to be holding shorts accountable for our decimated unit price (NGL specifically.) I responded with this:


Battles are designed to annihilate.

The more complete the devastation, the greater the win.

A short always goes for the jugular, nothing less.

There's a component of this in you and me as well---amply evident whenever we pursue our notion defining where we expect a coveted stock pick to reach before its anticipated drop from grace. We engage in this practice when managing our MLP distributions.

I've got an order in for 300 NGL set to trigger @ $9.00.

I'm playing to the short side, nothing less.

I don't want to see the drop occur but IF IT SHOULD OCCUR--=-why shouldn't I be on the receiving end?

Shorts are the enemy only of investors with limited vision. They are the downside of every hill we climbers encounter. The market could not possibly exist without shorts.
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To be perfectly clear---I have never shorted a stock---not ever. Yet I know well the importance of recognizing trading-channel breadth when seeking to add to an MLP position. None of us is prepared to overpay when in pursuit of position adds, right? So we envision price-oriented boundaries and engage accordingly.

If NGL should drop to $9, I want to be on the buy side. It will deplete my cash reserves and is dependent upon the relinquishment of a part-position in another equity. Thus I'm playing both sides of this transaction---gauging the high end and low end of two different stocks, so as to capture the best of both situations.