links for 2007-08-04

mike:

i learnt a lot from your blog.
i want to clarify the trading recommendations by you.

1. Say my investable money is 200k. I use 50% equity, 30% bond rest cash. So my eqquity is 100k. (or you are using all 200k as your equity)
2. For each trade i use 1% R (risk) that is $1000.
3. I cannot do any more trades on a given day till this trade executes for if i have say 3 trade, i may end up risking $3000 on a given day and worst case scenario may lose as much (but will violate the % risk modelling)??
4. That means say i did my first trade w/ R=$1000. But 1 hr later a great opportunity presents itself so I let it go (that doesnot make senes)??
5. On an average how many trades you do? 2-3??
6. What is your usual stop 1-1/2% below your entry point ( i would think most decent cap stocks would meander between -2% to +3% from prev day close range at the most) so obviously you will not use 10-15% stop loss as recommended for the long term investor.
7. would appreciate if you give real examples of trade..entry point and why did you enter and how did you come up w/ that stop (by some technical analysis etc)

congrats that you made 100R in 7 months. In the case of R=1000, that is 100k in 7 months. not too shabby.

I plan to keep doing it 9-1.30 after that i go to office for my regular work.
thx a bunch Mike.

Minsky Credit Cycle
http://www.rgemonitor.com/blog/roubini/208166