Wednesday 14 April 2010

Macho Trading Is Such Fun

I love lifting a decent size offer and then being the bid. There's something about the power to have a stock do what YOU want that I find very stimulating. It's probably a character fault of mine.

I remember when I was trading client orders I loved having good size so that I could pin a stock to whatever price level I thought was appropriate for the given day.

Even better, but forbidden, would have been to lift the warrants offers before lifting any underlying offers. That's always fun because the option seller / market maker will need to buy some stock sooner or later (if it's an in the money option anyway).

I always loved when a sales would tell me: Buy the company at xy price!!

I would have had lots of fun intervening like the SNB did on EUR CHF recently. Jack the price up by 170bp in a couple of minutes. Not surprised they do it. It's fun ;)

The flip side to macho trading is trading with 15-20% and limits. That was always my nightmare. But of course from a investor standpoint that makes more sense. You don't want to be holding or pushing a stock only to see it collapse as soon as your done.

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