Tag: Speculation

  • Fixed System Short List #2

    Q:I understand that you’ve started a second short list. Can you give us more details? A: Yes, the Fixed System Short List #2. Criteria for getting on the list are as follows: A prior price rise greater than 500% A large market capitalization that makes further price rises unlikely to exceed 33% Sufficient opportunity for…

  • World’s Largest Gold Mining Company

    Q: I see that ABX, the world’s largest gold mining company by sales, has doubled in share price from its low four and a half months ago. What do you make of that? Have we missed the low? A: Maybe for ABX. Gold share prices do not all bottom at the same time; they never…

  • Gold Mining Shares is a Sound Strategy

    Q: We have had a significant up move in the gold mining shares since the middle of January. I remember your suggesting that for portfolio investors, dollar cost averaging into the shares was a sound strategy. Have you changed your view now? A: No, it is a sound strategy still for anyone looking to acquire…

  • Stock Market Capitulation

    Regarding Stock Market Capitulation Q: I see that Tesla Motors was down to $148 yesterday (written on Feb 9.) from $211 on January 8, 2016 when you placed it on your short list. That comes out to a 60% rate of return on a retail margin for short selling of 50% in less than a…

  • Subjective Value Wins over Government Intervention

    Why, in Applying the Fixed System, Does Subjective Value Win over Government Intervention? A market price refers to what a willing buyer and a willing seller will contractually agree. To the extent that force or fraud exists, as it does with all government intervention, the transaction is not willing and therefore does not reflect a…

  • The Fixed System Short List

    The Fixed System Short List TSLA closed February 2, 2016 at $182.78, a drop of $28.22 in just eighteen days. That’s a profit of 26% if your broker requires a 50% retail margin on a short sale, and better than double if you’re trading options, in this case put options. For a portfolio manager, the…

  • Short Selling and Speculation by Arthur Fixed

    Q: I see that TSLA closed at 173.48 yesterday. That is down substantially from your short at 211 on January 15, 2016. Care to give us an update on your thinking? A: The chartist would point out that it is now clearly under a two-year distribution top pattern. To their way of thinking that pattern…

  • Can the Fixed System be used in short selling?

    Yes, absolutely the Fixed System be used in short selling. It does not matter which direction the market is moving as long as it’s moving vigorously. The Fixed System incorporates all the successful concepts and procedures Jesse Livermore used in the 1929 crash to make a hundred million USD shorting shares on the NY Stock Exchange.…

  • Does The Fixed System use Austrian Economics?

    I prefer the approach Rothbard takes in Man, Economy, and State (written 1975), his one-thousand-page magnum opus and attempt to include all the laws of economics. He built on the work done by his mentor, Ludwig von Mises, in Human Action. Mises was from Vienna, Austria. The name Austrian Economics derived from a simple fact…