Wednesday July 11, 2012
In broker school orders are something to be learned to pass tricky multiple choice question on the Series 7 Quiz. Reality is that if the customer wants something, just buy it at the market, why bother with fiddling around, besides if it goes up the customer will be unhappy he is not in.
The successful strategy however is to place a series of small evenly spaced orders at lower and lower prices. This is to dollar average down into a position. Today I had this result for example
Security Execution Close for the Day
EWZ 50.37 50.79
GDXJ 18.27 18.42
SIL 17.47 17.67
Sure my overall average prices are above where some holdings are trading but others are already up such as XES, up 37 cents today by the way. This is far superior to sitting around the computer, getting emotionally involved, watching the news, etc. Hm, FCG is up from my average price as well. Most positions have small losses, which is to be expected when accumulating at lower and lower prices.
We hit Ramki's target for the Euro at 1.22, he is still bearish but with the Dollar at the top of its range, the Aussie and Loonie advancing, and oil up over $2 today, I suspect the rally will begin sooner than later.
Watch oil, that's the key. For oil to be up $2 on a day when the US Dollar was up is rather amazing, oil being priced in US Dollars internationally.