Kenneth Rapoza, ContributorInteresting.
Sure you can make money when the market goes down. The problem is
timing. You start building short interest when the market is rising and
you [...]
peternyc5521For
what it’s worth, I attended a trading seminar given by Mr. Rastani in
Europe. He was one of a handful of speakers. Most of the material
covered was of [...]Yesterday a purported independent trader going by the name Alessio Rastani appeared on BBC and said some delicious things, namely that he’s been dreaming about a recession and that Goldman Sachs rules the world.
Gawker promptly called him a “sociopath.” My colleague at Forbes said he might be a psychopath. Some people commenting on his Facebook page called him a “muppet,” a “nasty little self-publicist” and a “totally honest bastard who wants to rise to the top of [on] the rest of the world’s misery.” Another suggested that he die.
But then talk circulated that Rastani might be a member of Yes Men, a collective of impersonators. Was his little talk a hoax? When I reached Rastani in London to ask, he spouted some vague wisdom, mentioned his “trader friends,” and insisted that trading is his obsession. He started off the conversation:
AR: I had something to tell you guys. The guy who wrote [on Forbes] mistakenly wrote that I’m a Wall Street trader. I’m not an institutional trader. I wouldn’t dream of ever doing that. I trade my own money, my own account. That’s what I always wanted to do. I like the idea of not having a boss. I did work for one institution, but I realized I want to do it for myself. I just started, and I worked with some of the best traders in the world. I saw how they were doing things. Eventually I developed my own style.
FORBES: Who are some of those ‘best traders?’
AR: I started with traders just like me, trading for themselves. They have their own trading room, desk, basically trading their own money. Some of these guys are millionaires and doing really well, I followed their footsteps. What did I learn from them? I think the most important thing I learned from them is how to not lose money, to protect themselves against risk. …. What you realize is the most important thing is to take care of the risk. To not have an opinion about something, to see what’s in front of you. Follow the charts and signals. You have to have a plan of action, a set of trading rules or a trading plan. So what that really means is a set of rules that tell you exactly when you’re going to enter the markets and when you’re going to exit. You’ve got to be humble about your decision. If you see something is not working for you, if you get into a trade, you have to get out. As they say, cutting your losses short. That’s sort of general knowledge, nothing shocking, nothing new.
FORBES: When did you start trading?
AR: I started trading for real in 2006. And to be honest, the teaching side of it is mostly just a bit of fun. In this business you meet people who come up to you and say, “Can you show me how to do this?” It’s rewarding to show people how it all works.
FORBES: What kind of trader are you?
AR: What kind of trader? What do you mean?
FORBES: Usually traders have strategies.
AR: Oh I see, I’ll tell you what kind of trader I’m not. I’m a very risk-averse person. I never get into a position that I haven’t fully analyzed. I trade mostly the Dow futures, also a bit of forex, and I trade stocks, the most liquid stocks in the market. What I look for, essentially what I look for is opportunities. I’m a trend trader, so I trade trends, that what I like. And I like volatility. There are three things I wait for. I look for moments of high volatility, or the early parts of a volatile market, and I trade the momentum.
Kenneth Rapoza, ContributorInteresting.
Sure you can make money when the market goes down. The problem is
timing. You start building short interest when the market is rising and
you [...]peternyc5521For
what it’s worth, I attended a trading seminar given by Mr. Rastani in
Europe. He was one of a handful of speakers. Most of the material
covered was of [...]
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Interesting. Sure you can make money when the market goes down. The problem is timing. You start building short interest when the market is rising and you start building long positions when the market is tanking. But timing is another thing…For every fund manager that was up 80% in 2008 cuz they were shorting the dollar and buying SDS, FAZ and QID to name a few, there were just as many who went out of business because timing the market is not easy. Maybe it really is a skill and you ahve to say, hey, look these are the Manny Ramirez’s; these are the George Clooneys. Most of us are just on the B list. If you had started buying SPY in Aug 2008, had the balls to buy it again in Sept 2008, then again in Oct 2008 and finished off the year a buyer…you were losing your shirt until March 6, 2009. If you stayed with it, didnt sell, didnt even buy a put option to give you the option to sell, you were up, and you were up handsomely. He iss right, day traders are obsessed. Its a certain coked-out breed these guys. Every pay counts. For average Main Street americans…they cannot protect their 401ks this way. The best they could do is put it all in TSYs. And if they are “all-in” in their small $10,000 Schwab account, they wont have the money to buy index option puts anyway, or buy SDS or the VIX because they dont have the liquidity to buy. Their flly invested. Professional investors think that the rest of the investing public can do what they do. Sometimes I go to Vegas and win a few grand at Roullette. But I will never ever win six figures, or even five, at a poker table. Those guys play poker with the economy.
He’s only just saying what we are all thinking!!! GS clearly has too much infiltration into the US powers, and computers (ie, institutional investors’ programs) don’t care about politicians. So what’s so shocking?? Are you really all that naive??
I find it funny how you’re assuming it must be a hoax.
Because nobody would dare tell the TRUTH about the current state of the world economy…
It would help if more people in finance would cut the crap and tell the truth for once so the people on the street don’t get sheared like sheep..
Goldman Sachs does NOT “rule the world.” They’re a bank holding company now, so he propietary trading desk is gone. If Mr. Rastani had half-a-brain, he’d know that.
Look at the GS stock price chart. They are a small shadow of their former selves.
Dear Michael, GS rules the World. Pls see Zeidgeist Addendum or ‘Insiade Job’ .. Things will be clearly understood!!
Well, yaa what he said is around 70% truth!, GS is the big guy in monetary system and their powers are completely unlimited. but, I cant accept with his 12 month market fall, I feel it will be much more earlier, !! What I feel is this market just bubbled too much and needs heavy correction and Govt’s are trying to adjust their policies to support the bubble rather than trying to fill the gaps!! and mostly imp thing is Govt’s are trying to defend the currencies than making them more sustainable!!
For what it’s worth, I attended a trading seminar given by Mr. Rastani in Europe. He was one of a handful of speakers. Most of the material covered was of the typical variety, focusing on technical analysis and trend following strategies for the Euro Stoxx 50 and the DAX. He did indeed spend a considerable amount of time on strategies that could profit from a sudden break in the market. I had a chance to speak to him for a few minutes afterwards, and he mentioned that he was a long-term bear on the Eurozone. Most of the attendees were private investors, but a there were several hedge fund portfolio managers and bank traders in the audience. So I believe that Mr. Rastani has accurately represented himself.
The guy doesn’t even have a Bloomberg terminal. (i checked, no login) Apparently he trades out of his mom’s basement. This is typical BBC pap.