I did my time on WS - albeit I never felt comfortable there. I wasn't comfortable with the people and the way we had to do business - not the trading. I was into the markets since I was 15. I figured, WS would be the best place to hone my skills. So why is that main street vilifies wall street so much?
Simply because of the opulence. If you have been to the Financial District - or as the cool kids call it FiDi, you will know it's full of 20 somethings and 30 somethings acting like they're Gordon Gekko. Capitalism, personified, doesn't look like a picturesque landscape. Just picture Scrooge McDuck swimming in his vault of gold coins. Furthermore though, you also have to deal with the fact that these are the biggest drug and alcohol users in the world. Perhaps the substance abuse is a coping mechanism to deal with the pressure to perform. Perhaps it's due to other issues people have there. But there is one thing that is certain - the highs definitely come with painful lows. I'm a west coast kid - raised with morals and a Swedish work ethic. I was by no means poor but our family was considered middle class. You can imagine the huge adjustment I had to make moving to a place where nothing matters but money and glory. I did my best to cope and as soon as I felt like the last vestiges of my soul was leaving me, I had to get out. There is simply nothing wrong with making money. I think it's the way it's done on WS or in the City that makes it so controversial. I didn't suddenly grow a conscience after the entire capitalistic system made me money. But what separates me from others is perhaps I do have a conscience and a sense of morality. I grew up learning to value what I have. I remember in college I had $200 to my name and $70,000 in student loans. I had to work my way through university while being a full-time student. The capital markets took care of my liabilities as I put myself through school. There's nowhere else in the world that can generate a huge return in so little time but the markets. So that, there, is the great thing about the markets. It's only when greed and the desire for more money ruin the financial system. Greed is an inherent human trait and so is pride. This is what I'm trying to fight. It doesn't mean I don't have an ego. It doesn't mean I've fully conquered greed. But I think I can say that I've simply eliminated whatever bloated personality traits I badly developed on WS. Everybody has insecurities. I do too. However, it's hard to develop insecurities when I have everything I want and live simply. To live simply is to live happily. To live happily is to be content. Something to reflect on... -Gavin
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I'm by no means an expert in these markets but I am blessed to be able to do what I do while being paid to help those who seek to do better in life. The markets these days are so convoluted that the average investor really gets confused. The markets being bifurcated means things are being interpreted differently and logic isn't always the overwhelming factor for most trades.
This is the point where trend traders really get confused on whether to go long or short. However, as a daytrader, I have the flexibility of either following trend or ignoring it. So how do you navigate an ever changing landscape? It seems that yesterday you feasted your eyes on a golden, sun-lit beach and now you have massive sand dunes ready to sweep you away. I find that it helps to be as flexible as possible. If you're not flexible, you're going to struggle in this environment. You have to get back to basics. You have to revisit your core principles and see if they are still valid with the market around us. Then and only then can you realize that you may need some reorienting. I've been lucky to find some short setups whether it was for VRX or FEYE or Cable. This is what I've been preaching since I've become a trader - to be flexible. While it's true I'm 90% sell side, it doesn't mean it's not possible for me to go long. However, when I do see weakness in securities, I do not hesitate. Sometimes I may not even trade if nothing is going down. But the good Lord always does provide despite me being a heathen. For those of you who are lost, stay the course. There's always light at the end of a very, very dark tunnel. -G It's been awhile since I've written something. I'm so busy with something called trading and life, you see. I'm sure you've read countless articles on VRX so I will not dazzle you with MOAR charts and MOAR data. I went short VRX ever since the DoJ got interested around $180. I jumped in on the 'fear'. Perhaps it was a godsend that my short kept being profitable as Citron et al went full Lebowski on Valeant.
Is Valeant the next Enron? I don't have enough data based on my own analysis to say so. Is it Pandora's box? Quite possible. You're dealing with a company that skirts morality and legality like a fat guy ignores his cholesterol at a golden corral buffet. What they're doing certainly isn't illegal in the eyes of the law. What happens now is how they do on their defense and then support that with a strong offense. Until then, who knows. This isn't like my LL short where I am sure it was a fraud and they did settle out of court later. This is still ongoing and because no one affiliate has come out saying they've been swindled by VRX, jury's still out. Trade carefully muchachos. -Gavin |
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May 2018
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