MysteryTraderBlog.com: Loose Cannons and Volatility

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One whose identity is unknown and who arouses curiosity.

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Loose Cannons and Volatility

Are Fed governors talking out both sides of their mouths, hawkish and dovish at the same time?
See my comment of June 16, 2006, at the bottom of this page.
Do they even know what they are doing?
Or, do THEY know exactly what THEY are doing, at all times?
Are traders overreacting to both hawkish and dovish Fed comments?
This volatile mix obviously makes for a wild trading environment.
I expect more of the same.
We’ve got to TRADE, not invest.
The presence of so many loose cannons rolling around on deck offers mucho volatility, and that offers potential for both big trading profits AND losses.
Of course, this calls for discipline to strictly limit losses without hesitation when our trades don’t work.

Posted by MysteryTrader on June 30, 2006 03:00 PM | Permalink

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About Me:

Almost nothing is known about the Mystery Trader. If there were anything much known, he or she would not be such a mystery, would he or she?

We can say only this: the Mystery Trader has been trading for a long time, has learned a few things, mostly the hard way, has traded all kinds of crazy financial instruments, has made AND LOST an awful lot of money, and has not died broke well, not YET anyhow, but there is still time for that.

The Mystery Trader writes these impressions and thoughts as a kind of an uncensored stream of consciousness journal or diary, largely for his or her own amusement, but also hoping these thoughts might help readers somehow, perhaps occasionally, prevent them from doing something stupid.

The Mystery Trader hopes that his or her thoughts might help YOU keep from losing YOUR shirt in the world's biggest casino. The financial markets are notoriously tricky and have ALWAYS been loaded with disinformation, deception, raw deals, chicanery, and outright criminal theft. Unfortunately, little of this bad behavior is caught and punished because the financial markets are too big and chaotic.

The Mystery Trader certainly and explicitly does NOT recommend that you blindly accept any ideas presented here or take anything expressed here at face value as actual fact. On the contrary, if anything, the Mystery Trader hopes that this blog might encourage you to think entirely for yourself and develop your own UNcommon sense. Be careful, have fun, and good luck!

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