June 3, 2012- CAL- Calata Corporation – I’m a Believer and the Zero Cost Strategy

Listen to the lyrics of this youtube video.  I bet you, that’s the way Cal believers are feeling now 🙂

And then I saw her face
Now I’m a believer
Not a trace
Of doubt in my mind
I’m in love
I’m a believer
I couldn’t leave her
If I tried

I thought love was
More or less a given thing
The more I gave the less
I got, oh yeah
What’s the use in trying
All you get is pain
When I wanted sunshine
I got rain

*****

So I’m calling a spade a spade.  Suspend your disbeliefs.  If you have CAL, I’m not gonna do any bashing.  That’s for immature people, excuse me.  This is the Zero Cost Strategy.  What does this mean?  Simple.

The Zero Cost Strategy

If I have 1000 shares of CAL at 7.50, and at Php15.00 I’m already up 100%, then any price above 15 , technically is all profits.  I don’t have any capital already.  As long as I sell half of my position, I already get my capital back and let my winner ride all the way to 23, 30, 40, 50, 100? I don’t care.  Hey, don’t you think that’s the same concept with RUN WITH YOUR WINNERS!  Suspend your disbelief, but basic trading strategy means, no looking back.  If you’re sitting with some massive profits, with no lock ups or whatever, you have all the bounties to be happy and ride about.  Same strategy with DIZ.  (I know of a lot of people who made so much money in DIZ and NI just by simply playing the ZERO cost strategy.)  Get used to it.  The best traders aren’t accountants.  If everything had to be about valuation, then what do you call the tulip bubble?  What do you call the Nasdaq Bubble?  What do you call the US housing bubble?  Think it’s not the same?  THINK AGAIN.

Read Mackay’s book – Extraordinary Popular Delusions and the Madness of Crowds

http://en.wikipedia.org/wiki/Extraordinary_Popular_Delusions_and_the_Madness_of_Crowds

What are we here for?

The stock market is here for you to make money, lose money and nothing more.  You aren’t here to be a nice person.  Bad boy, bad girl.  Dark side, Bright side.  Hullaballoo.

—-” When people complain and are still paying for it, you have found market price.”  – Paul Graham.

This applies to every stock in the market. Not just CAL, not just DIZ, not just NI, not just them.  EVERY STOCK.

Truth be told, I’ve got friends in the markets sitting with huge gains in these companies.  They continue to be my friends.  The stock market isn’t easy.  It is messy.  People will distract you.  I avoid giving opinions precisely because opinions mean nothing.

I don’t want anyone to know who I am not because I’m hiding some agenda or whatever.  I want you to focus on the message, and not shoot the messenger.  Simple as that.

People are imperfect people.  Gurus are distractions.  Listen to the Sprite commercial – Obey your thirst.  OBEY the PRICE.

I don’t want attention.  I just simply want to silently make money.

I could be too risk averse for you.  I could be too boring.  I could be too aggressive.  I could be too stubborn.  I could be many things.  Financial decisions are personal things.

These are personal decisions.

Don’t laugh.  Who’s the patsy now?

– Faceless Trader

P.S.

Congrats to all the CAL holders sitting with their gains.  Whether sustainable or not, risk management is key. 🙂

Personal Disclosure – I don’t have any CAL shares.  My clients do.  They’re very happy.  Good for them.  I should have learned to eat my own sh*t and suspend my disbeliefs when I saw Sun Securities chomping all the shares on the reversal. Congratulations to all who are making money, who made money and if you lose money, hey, that’s none of my problems.

Do your own due diligence.  The stock market is not for retards.

“The stock market is not for the lazy nor the uninitiated.  If one really wants to succeed in making money in the stock market over the long haul, then one will need to put in the necessary time and effort – not only in the studying of the stock market, but in the studying of one’s own psychology and tolerances as well.” – Jesse Livermore

*****

Saw someone (courtesy of Mr. Antig)  post a chart re CAL.

Good enough to share— You know you’re already trading a risky stock when everyone else is sitting with 200% gains. When people can sell millions of shares at prices above 20 pesos, when liquidity is too large, ingat!!!  Just saying.  But shouldn’t you always be “maingat” with ALL STOCKS ??? anyway?

Advertisements

About Abc

Abcdefghijklmnopqrstuvwxyz
This entry was posted in A Little Common Cents Corner. Bookmark the permalink.

15 Responses to June 3, 2012- CAL- Calata Corporation – I’m a Believer and the Zero Cost Strategy

  1. Nobody says:

    thanks for the heads up FT. ahahaha, although parang galit ka dito ah: “THINK AGAIN dimwits.” kidding :p

    Like

  2. Ben says:

    Thanks for the CAL analysis FT. 🙂

    Like

  3. Ben says:

    “I don’t want attention. I just simply want to silently make money.” – 2 thumbs up.

    Like

  4. Lyndon Bonzon says:

    Zero cost strategy???!!! Gain another strategy for trading and investing.

    Like

    • yep … well that’s just one way of looking at the fact that you’re already up more than 100% for a few couple of days of short term trading, so why not sell some, and just ride the other half 😀 Congrats. At least you’re protected of whatever downside happens diba? wala ka na cost eh. ur just technically riding ur profits. worst case scenario..ung kinita mo– lumiit pero kita pa din.

      Like

  5. Out of Stock says:

    zero cost strategy is almost fool proof!
    “almost” because its implementation is hindered by emotions i.e. greed, etc. IMHO only.

    Like

  6. Pingback: July 26, 2012 « OUT OF STOCK

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s