DFWMustangs stock market game 4 starts 3/25/2014

[1carcrazyguy]

My account is not set up to short anything. I started out with fun money (separate account from our IRA and 401k). I was long WYNN, KO, AAPL and got in on BABA right at the IPO. After losing some on WYNN and BABA, I decided to quit playing the hold forever game. Started playing FCEL, PLUG, and EBIO. Then moved to VRX, LNKD and SPY. Now the only thing I am holding is PRGO, MO, BCS, and VRX. Playing VRX pretty much daily when it looks like it is going to run.


I actually moved the IRA account to all cash on Tuesday. Still have our 401k invested but planning to move it next week to a more stable holding (maybe something more bond based?)....still trying to figure out how to reduce my exposure during the next few months. Figured I would go to cash and wait for a dip. With the market at highs I just felt it was not worth risking a huge dip. I know it will likely be higher, at some point before we retire, but I feel that with the market at all time highs....it is very likely to pull back soon.

One of our former advisors said, if you can avoid one or two major dips in the market before you retire it could be like having an extra ~5 years of growth. Probably not that much of a difference but "all time high" does not sound like a great place to stay in.

[slow99]

I do now.....


I know just enough to have lost a bunch on VRX, but make a few bucks on ICPT, MO, EBIO and a few others. Just learning how to read charts.

Buying something, in the traditional sense and what most common people think of, is the equivalent of going "long" a position. You purchase it, or go long, thinking it will appreciate in value. You profit by buying it at a price and selling it later at a higher price.

When you think a security will decrease in value, you "short" it ... you profit from it going down. You sell a position you do not own at a current price then profit later by buying it back to close it out at a lower price (you hope). It's the same process, only in reverse. Instead of buy low/sell high, you're selling high/buying low.

I'm sure QIK46 will be in here to tell you to go long TVIX b/c it's going to $1 million a share, but you do NOT need to be fucking around with the .vix until you fully understand what's going on. The vix is NOT a tangible asset - it's the plug for volatility backed out of the formula for the Black Scholes option pricing model. Since you cannot directly trade it, the only way to replicate its performance is in the derivatives market via futures or vix options. Long story short, the actual .vix (which you cannot directly trade) can remain flat, not move at all for months, and you can lose your ass on a position that attempts to replicate it. These vix replication lose 60% - ish a year even when the underlying vix itself remains flat due to decay that's embedded in the derivatives. Bottom line, paper trade the thing for several months until you understand what's going on - the VAST majority of the general public has no business playing around with vix related products.

[1carcrazyguy]

I do now.....


I know just enough to have lost a bunch on VRX, but make a few bucks on ICPT, MO, EBIO and a few others. Just learning how to read charts.

[slow99]

See....that is how you know I am completely new to all this! So when CNBC and people talk about shorting the VIX? How does that work? I completely missed the "index" label next to the VIX ticker.....


Yeah....I am feeling dumb....

Do you know enough to know that "shorting the VIX" does NOT mean buying it?

[1carcrazyguy]

How you gonna do it ?

See....that is how you know I am completely new to all this! So when CNBC and people talk about shorting the VIX? How does that work? I completely missed the "index" label next to the VIX ticker.....


Yeah....I am feeling dumb....

[01yz2nv]

Lol I'm in the EXXI boat. My position is worth $3.60 fucking ouch.

SUNE is up 82% today, so that's nice.

I wish SUNE was still up! I've still got 330 shares....

[slow99]

Anyone thinking about buying the VIX now that it is so low?

How you gonna do it ?

[1carcrazyguy]

Anyone thinking about buying the VIX now that it is so low?

[snacksnack]

Well you could have warned us sooner......thanks....

lol

[1carcrazyguy]

Well you could have warned us sooner......thanks....

[slow99]

AHP - choooo$$$$ chooooooo$$$$$$ fuckers!

http://finance.yahoo.com/q;_ylt=AwrTHQypYFhXKisAFuJXNyoA;_ylu=X3oDMTEyN2RvcnM2BGNvbG8DZ3ExBHBvcwMxBHZ0aWQDQjE3OTNfMQRzZWMDc2M-?s=AHP

[HarrisonTX]

EXXI jumped a few days before they filed.

But not near the $16 dolla I bought it at.

[1carcrazyguy]

EXXI jumped a few days before they filed.

[HarrisonTX]

Lol I'm in the EXXI boat. My position is worth $3.60 fucking ouch.

SUNE is up 82% today, so that's nice.

[1carcrazyguy]

Looks like I need to stop gambling on penny stocks.

Bought RSH....went bankrupt
bought EXXI....announced bankruptcy tonight.


Can't win if you don't try and just a good thing I only put 3-5% of my "fun money" portfolio into these penny stocks

Really worried if I am making the right call on holding VRX now. Their list of Rx drugs is impressive and they own Bausch and Lomb.