Wednesday, July 11, 2007

Swing Trading with a bunch of Woodies CCI Club Monkeys

Once upon a time in a village a man appeared who announced to the villagers that he would buy monkeys for 10 rupees. The villagers seeing that there were many monkeys
went out in the forest and started catching them. The man bought thousands at 10 and
as supply started to diminish and villagers started to stop their effort he announced that now he would buy at 20 rupees.

This renewed the efforts of the villagers and they started catching monkeys again.
Soon the supply diminished even further and people started going back to their farms. The offer rate increased to 25 and the supply of monkeys became so that it was an effort to even see a monkey let alone catch it. The man now announced that he would buy monkeys at 50! However, since he had to go to the city on some business
his assistant would now buy on behalf of the man. In the absence of the man, the assistant told the villagers "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at 35 and when the man comes back you can sell it to him for 50."

The villagers queued up with all their savings and bought the monkeys. The assistant promptly vanished the next day leaving a village full of monkeys....JAB

The only problem with being a monkey is simple.....if the account size required is only $2,780.00 and the max intraday drawdown is $2,780.00 then I think "HOUSTON, we have a problem". The other problem is, of course, the winning percentage is a whopping 44.5% what happened to this 80%...90%.....winning ratio. Think it's time to go back to the basic....

This performance summary doesn't include something called COMMISSIONS.....remember pay them when you win, you pay them when you lose. Wonder how much that would be on a thousand and eithty trades maybe you could ask the Woodies CCI Club about that...they should know.


cathy said...

Same chit, wrapped up with a different colour bow. I like the monkey joke that goes with it. Perfect!

Anonymous said...

neither commissions nor slippage ... that beasty thing that appears from time to time to catch a monkey .. or two

Flatwallet said...

Funny Joke...