Thursday, January 05, 2006

Audacity

About 3 or 4 years ago, I played basketball pickup games on a regular basis at the mizzou rec center with several friends. One day I will never forget, I was shooting horse with Will and John when all the courts were full at that time. We were finishing it up, and many people were waiting for a court to open up when I recognized a person from the night life named Terry. I knew the guy was an ass and I didn't want to speak with him, but it was too late, he and his friend were already walking over to our court. They stopped on the sidelines where we had set down our stuff to play, and Terry came out onto the court. We said our hello's and Terry jumped up and grabbed the rim of the basketball hoop. He looked over at my friend Will, who was the tallest out of us, and asked if he could do that. Terry jumped up and did it again a few more times to illustrate, and we all stared up at him while he interrupted our game. Will tried it once and couldn't get to the rim, then we started shooting the ball again. Terry exchanged glances with his friend and they walked off.

About ten minutes later, we grabbed our stuff and got ready to leave when John noticed his wallet was missing. I think he had something less than $100 of cash in there and some credit cards. I don't know if they were trying to get my wallet or not, but I got lucky because I didn't bring mine. John called and cancelled the credit cards immediately, but there was nothing to do about the lost cash. I never saw Terry again, and years later I'm contemplating the significance of that event in my life. I got a first-hand lesson that people are audacious enough to take from you right under your nose.

The reason this story is in my mind is that over the past couple of weeks I learned something so radical about trading markets that my mind is blown. I feel like I did on that basketball court at mizzou because people are clearly using strategies based around the techique I have just conceived, but I have never read anything that describes it in detail anywhere. Could it be so simple and obvious that I'm an idiot for taking so long to recognize it? I don't think so. It seems more likely that techniques like this one are kept hush-hush by those who discover and use them, like some sort of class warfare among market participants.


9 Comments:

At 2:15 AM, Anonymous Anonymous said...

well do tell... You've got my curiosity up now!

 
At 10:07 AM, Blogger Gordengekko said...

Watch BMD as it is right around the 50 dma. I am watching BMD to see if it can get support at the 50 dma.

Gekko

 
At 8:42 PM, Blogger Gordengekko said...

Jon-

ISLE looks to be your speed at it sits right on the 50 dma.

Gekko

 
At 12:14 AM, Blogger jontait said...

anonymous: Sorry I don't want to talk much about this undescribed technique and related strategies until I've had some time to experiment with them and realize more of the ramifications. If it turns out to be nothing, then it isn't worth mentioning, but if it works better than I even expected and nobody else is talking about it, I may not want to talk about it either ;-D

Gorden Gekko: Thanks for the heads-up.

 
At 11:06 PM, Anonymous Philip said...

Hi Jon,

Congrats on finding the technique! The way I look at the stock market, you can only make money if you stay ahead of the crowd. In order to stay ahead of the crowd, you need to do something original, something entirely different. And that's probably why your method is not mentioned in any books, because if it were, it wouldn't work.

Keep up the good work!

 
At 1:20 AM, Blogger Jim said...

Interesting post Jon. :) I take it your limit on CSCO didn't fill seeing how it shot up about 10% this week. And I'm happy that you used my MSFT example for your post.

Jimmy in Columbia

 
At 11:05 PM, Blogger jontait said...

Jimmy: Yeah no CSCO for me. Missed it by $0.08, so I took a position in a different stock with that money instead, and it has done just as well as CSCO over the past few days.

Philip: Thanks for the feedback.

 
At 4:53 PM, Blogger Hiren said...

One can understand reasons for keeping the technique a secret but hope that you share other trading experiences.

 
At 3:00 PM, Anonymous Anonymous said...

Go Mizzou!

 

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