Quote from Riffraffpatrol:
4/18/12 6:31 pm
Now Sb-- calm down and just try snd think rationally about this for 1 minute.
Suppose a terrorist event (heaven forbid and God help us) were to occur again on US soil the size and magnitude of 9-11 during trading hours. You are long and everything on the chart preceding this point leans toward continued upward momentum. What do u think will happen to a stock like GS? A small drop in price? A drop of $ 1.00 or more? $ 3.00? Or is it possible that a 5-10% initial knee jerk reaction could occur? I know the answer...but what do u think?
Frankly...it doesn't matter what u think...nor what I think. The point is no matter what we think...reality since thr dawn of time has constantly produced events and reactions that we wouldve never dreamed were possible. Does your life exoeriences supercede everything in history to date? Of course not.
You above all here should want to take "just in case" steps to make sure it is impossible for u to be catastrophically affected financially. U however take a turn the other cheek attitude..."it will never happen to me"... This is such naive thinking!
Im trying to help u here-- why else wiuld i be driving this point home?
No chart in the past will dictate what can happen. Its s moot point.
I missed your little quote saying "my bad" on 4/18/12. Oversight on my part. Oops, my bad. That still didn't deter you from being extremely rude. However you still went on to accuse me of holding buy positions when a black swan occurs. That is not what I said. I don't need to reinterate again.
Your attitude and the manner in which you speak to people is highly rude and offensive regardless if you say that you're trying to help. Like I said, if anything it turns people off and they will do the exact opposite of what you say. Like I said, if people were working for you, they'd either sue or leave. If you were at a bar, at a minimum you'd get tossed out or socked in the face.
Your black swan thing is not my concern. It will show up on the charts. There will always be people who are unloading at first and there will always be some buyers and short covering. You don't think people need to cover their shorts? Me being the scalper that I am, I will most likely provide liquidity for someone to get out of their position if the market is tanking. The 1987 crash, 2008 crash, all opportunities. Didn't those all correct later on? I'm sure there's many traders who made a killing shorting it during those times. My aunt made a killing buying BAC for $3 during those times and sold for $8 later on. She's investing.. not trading. I'm not advocating holding on however, just pointing out corrections that could occur with these fast drops. I only do short term stuff so I'm not interested in buying and holding.
If I was in a long position and noticed the fast drop on high volume, then I'd get out and reverse position. During market hours for a highly liquid stock like GS it doesn't just head straight down without any pauses or pullbacks. The pauses are when people get out and reverse for the second round of dropping. Gimme a break. Show me a chart that can't be explained, then I'd change my mind. Until then, I'm waiting. Just as stocks go up, it just doesn't go up during market hours without pauses and pullbacks.
As far as GS goes, it's highly computer algorithmized. There will be computer systems that will be picking up shares or short cover during market hours regardless of selling. They sense a fast drop in price beyond a channel in an overshoot and will do a fast pick up. Many of them scalp out too. There's a lot more liquidity in GS than Dendreon. I don't know of any companies that would use Dendreon as their trading instrument. In order for those multi-million dollar companies to switch gears for some black swan, someone will have to go in to change the codes. That takes time and that doesn't account for the computers or other traders buying on an overshoot as it happens in market hours.
The people that really lose are ones not watching it minute by minute. Folks that have normal jobs and not in front of the screen (investors). They get screwed. They don't see the drop off in price as it starts off and accelerates later on.
Any terrorist attack would be taken into account with the general economy outlook anyhow. In 2001, the attacks just accelerated the dot com busts. The only thing might do the job would be if a nuclear blast took out all of wall street. Wall Street is however highly guarded anyhow. Until then, I'll take my chances.
As far as T3 goes, I've heard of them. Although, they're not something that is on my radar, I'm sure they have some good techniques. I'm still working on mine. There's different methods people use to trade. Some Fibonacci, some PA, some indicators. Doesn't matter as long as they're profitable, fine. If someone told me right now to start doing Fibonacci methods, I wouldn't have a clue. It would take me months just to get into that. I'm going to continue doing what I'm doing until I get proven otherwise. When I get proven otherwise, I change gears and go with something else. My losses were mostly exercises in learning what to do and what not to do in trying different entries. I'd say I've improved as a trader overall from when I began. Improvement is all that matters.
A trader that can consistently be in the green after 6 months of screen time, that is at least noteworthy. At this point doesn't matter if it's +10 or +100, I'm just here for experience and building some breathing room.
