3.20.08 4.15 Settlement

Trade Date:
3/20/2008
	EST		Buy		Sell
Position	Time	Type	Price	Average	Price	Type	P/L
1		Close	1298.75
0	10:00				1307.75	SF1	$450.00
-1	10:58				1313.75	SE1
-2	2:01				1320.75	SE2
-3	3:24			1322.08	1331.75	SE3
-3	4.:15	Close	1325.00				-$438.00
					0.09%		$12.00

Summary:

Today's P/L is $12.00; for a 0.09% gain.

We entered the day long 1. We covered our long and sold an additional 3.

We conclude the day short (-3).

Working Orders into 4:15 Close

I have posted 3 buy orders into todays close: BF1,BF2, and BF3 (below). If these orders are not filled, we will conclude the day short (-3).

Position:	-3		1322.083	SA123
Working Orders:
	Buy		Sell
Type	Price		Price	Type
BF1	1319.25
BF2	1312.25
BF3	1305.25

SE3 Filled

Filled	1331.75	SE3		June Emini
Position:	-3		1322.08	SA123
Working Orders:
	Buy		Sell
Type	Price		Price	Type
BF1	1319.25

A Conversation with a Long-Term Investor Part 2

(Later at the gathering, I encounter my new Long-Term Trading friend again.)

Him: Hey Barlow, you really got me thinking when we spoke last.

Me: Look, I trade for a living and have been for 25 years. I don’t really want to talk about trading. What do you do for a living?

Him: I have a used car lot. I sell cars.

Me: Interesting. Do you buy and sell cars on time too… like your stock strategy?

Him: (felling silly and smiling) No, actually I don’t, and stop mocking me.

Me: Sorry, I really didn’t think you bought cars on Monday and sold them on Friday. I was teasing.

Him: Of course not. Twice a month, I go to the auction and pick up some cars that I think are undervalued and I leave them on my lot waiting for someone to pay even more than what they are worth.

Me: So, you buy low and sell high. You look for cars undervalued and sell overvalued. That is what I do when I trade stocks. So we are the same… we just trade different things, but employ the same strategy.

Him: Interesting, I never thought of it that way.

Me: I did.

Him: You put things differently than my broker does. Would you like to have lunch Monday? I enjoy talking with you. I’ll buy.

Me: I would love to. Maybe you can help me. My son is looking for a new-used car.

Him: Great! Monday it is. I will call you.

(Monday, I will post the conversation at lunch)

SE2 Filled

Filled	1320.75	SE2		June Emini
Position:	-2		1317.250	SA12
Working Orders:
	Buy		Sell
Type	Price		Price	Type
BF1	1308.25		1331.75	SE3

BF1 adjusted

Position:	-1
Working Orders:
	Buy		Sell
Type	Price		Price	Type
BF1	1300.25		1320.75	SE2

A Conversation with a Long-Term Investor Part 1

Here is the common conversation with a Long-term Investor:

Them: I am a long-term investor.

Me: Oh really. So you bought Stocks when you were 13 years old and you are going to sell them the day before you die?

Them: (smiling) No, not exactly. What I mean is, I buy stock in my 401K every paycheck and I don’t touch them or worry about them… I guess I will sell them when I retire someday.

Me: So, you want the market to crash shortly?

Them: Why do you say that? I want the market to go higher!

Me: Well… let me explain. The way to make money in stocks is to buy low and sell high. Now you don’t establish your buys on price; but on time. You buy every two weeks at pay time…and you sell at retirement. That is buying because of time – not price. So, what you want is the market to crash… accumulate stock then on every paycheck day at cheap prices.

Them: (standing there with a dumb face look and quiet).

Me: Something wrong?

Them: No, I just never thought of it that way.

Me: Well, you are a time investor. Strange trading strategy I must say. Excuse me, I must talk to someone… nice meeting you.

To be continued....

SE1 Filled

Filled	1313.75	SE1		June Emini
Position:	-1		1313.75
Working Orders:
	Buy		Sell
Type	Price		Price	Type
BF1	1298.25		1320.75	SE2

What is a Long-Term Investor?

So many times I hear people describe themselves as a “Long Term Investor”

I am not really sure what that means or if they actually know what it means. The term was coined by the brokerage industry to appease disgruntled investors when their portfolio and more specifically (losses) looked discouraging.

The broker simply replies to his client, “You are a long term-investor. Don’t worry about minor corrections in the stock market.”

I was talking to an 85 year old man last night and he described himself as a Long term Investor. How could this be? He could die tomorrow!

Anyways, having heard this so many times, it becomes the same conversation every time when someone describes themselves as such.

I will post later a typical conversation I have with Long-Term Investors.

SF1 Filled

Filled	1307.75	SF1		June Emini
Position:	0
Working Orders:
	Buy		Sell
Type	Price		Price	Type
BE1	1295.25		1313.75	SE1

New Working Orders

Position:	1		1298.750	close
Working Orders:
	Buy		Sell
Type	Price		Price	Type
BE2	1293.25		1307.75	SF1

Good Morning Emini / SP500

We enter the day long 1. New working orders will be posted shortly after the opening.

Position:	1		1298.750	close
Working Orders:
	Buy		Sell
Type	Price		Price	Type

=========

I want to thank you for all the emails. I really enjoy meeting all of you and your questions are stimulating. If I haven't gotten back to you, I will today.

I am sincerely impressed with the viewers of the FB 2.0 Blog.

You asked me to talk more about myself. Today I will tell a little about my trading past; for the curious viewers.

(I met a guy last night... he was 85 years old... he told me he was a long-term investor... hmm)

Barlow

j.barlow.smith@gmail.com