The King

Bad Guess

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Well, while every one got a nice boost today, mine went up only 1%. This is because i expected the FED to increase the rate by 0.25% and the market to start going on a downward path. Today morning i bought some ETFs that short stocks. Alas, the FED's unexpected action has crushed the short sellers and short ETFs. I lost out big for this reason. I should have waited for the FED action and then acted. I didn't mean to profit ahead of others when i bought the short ETFs today morning. I just happen to have lot of free time yesterday night which i have spent on thinking of a new strategy for my lagging portfolio. I believed that the FED will increase the rates by just 0.25% which will not satify the investors and there will be lot of negative current in the market. All this proved wrong for the moment. The quarterly report of LEH surprised a lot of people including me. I was thinking that all these big investment banks will report very bad results with revenues falling by 40%. Now it seems that things are not that bad. May be i have to change my perception of the business / market conditions. I will closely watch the economic news coming out in the next few days and play the market accordingly. As i have reported in my previous post, i am going to do active trading (good bye to buy and hold policy). But i am not going to sell the losers quickly. I will give them time to come back. With a NAV of 9.4 i am now not even looking forward to finish in the top 100. I just want to improve my game. The experiences i learn will be valuable for future games :)
PS : Marketocracy's order filling SUCKS. It's irrational. I could buy large number of shares in market orders in real life and here they fill very little quantity. Some day they need to take a look at their order filling logic.