Playing the Markets, Playing the Field

"People today know the price of everything and the value of nothing." As true today as it was when Wilde said it. Watch the value, watch the price, watch for the difference, exploit it. That's your happy profit just there.

It seems so simple, but in this financial world of smoke and mirrors, if you get panicked over prices you'll lose sight of your exit point and the pulse of your profit.


Price: good old John is a definite blue chip.

Performing consistently well as an independent equity with few directional changes (minus the extreme experiences of the gap year in South America), has recently made a comeback to the FTSE after being delisted following a hostile takeover of a Scandinavian communication company two years prior. His return to the markets was hailed as a success, trading 30 points above his previous takeover price.

Girls, don't believe the hype. He is totally overvalued. He's Sainsbury surges under your satin baby doll which will end in a write off. I'd suggest a classic selling into strength scenario. Pull out from any long term illusions and short the ^&*!

Now, I know this is hardly an acceptable way to treat people - I can hear my mother's parched and waining objections echoing off my Teflon resistance. But this 'cold calculated approach' is actually serving me very well.

Christian-Paul has been on the CAC for quite a while and is underperforming. No M&A interest, low trading volumes, He wasn't seeing much action. He asked me out on a date in the first 10 minutes we met, and acknowledging my disgust at the lack of champagne at a party in the penthouse of the Mayfair Hotel, resurfaced five minutes later with a bottle of pink LP. (Like he read my mind, my drink du jour.) Then gazing longingly into my eyes, he told me of his meeting with Warren Buffet and how old assholes drive Ferraris.

Undervalued stocks are great long term investments.

2008 is going to see the end of my FX-trading-trends and some long term investing. Though some are clinging fervently to their jobs while pictures of distressed traders plague the covers of our dear pink morning paper, others are pulling in profits.

Positively raking it in.

Those my dear friends are the real McCoy. It wasn't hard to hitch a free ride on the gravy train when almost anything you invested in made you money. Like those secret bonus rooms in Mario (old school) where you'd have gold coins all around and collecting every last one was just a matter of jumping on the benefits of lavish liquidity.

Playing the markets are, I suggest, not that different from playing the field.

Well, at let's see how Q1 goes....

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