Rocky’s Definitions

DISCLAIMER

Rocky I – A good solid trading idea with a reasonable risk/reward.

Rocky II – A Rocky I idea, however, the current entry price isn’t terribly attractive.

Rocky III – A wildly speculative idea.

Rocky IV – An idea that Rocky is watching and thinking about.

Rocky V – A investment that makes sense to Rocky, but the markets disagree.

Rocky VI – The sixth film in the Rocky series. Rocky says that the world might be a better place if the producers had stopped with Rocky II. But Rocky also believes that Sean Connery should have been the last James Bond.

STO – “Scale to Oblivion” – An irresponsible investing technique based on Zeno’s Paradox , in which Rocky digs in his heels, and adds to his investment … all the way to zero. STO-type trades usually occur in a Rocky V (see above) situation. As a statistical proposition, STO’s are usually profitable, but they sometimes go to zero too. They are rarely suitable in stocks — more suitable for bonds, commodities and currencies (which cannot go to zero).

Sue – a man who sadly lost an eye and a leg in a golfing accident, but whose eye for investment value remains intact. Rocky met Sue while fly-fishing at the shores of Lake Wobegon.

The First Law of Rocky – In every “macro market” (indices, bonds, commodities), all prices WILL be seen at least twice. The only unknowns are: (1) how long it takes and (2) how far prices go, before the price is re-visited.

The Second Law of Rocky – Rocky always keeps his calculator precision set to two decimal places. Any trade that requires more precision than the hundreth decimal place, is a trade that Rocky leaves for smarter participants.

Trophy Wife – Trophy Wife (not to be confused with Entrophy Wife) is a Mistress of the Universe in her own right. She is also an astute observer of consumer behavior, fashion and whether Rocky’s dirty socks inadvertently remain under their bed. Trophy Wife vehemently states that she cannot predict the stock market. Rocky believes otherwise.

X-22 Computer – An extraordinarily powerful computing device.  If misused, the X-22  may cause irreparable harm to both national security and to Rocky’s balance sheet.  The first public disclosure of the X-22 leaked during an episode of the 1960’s television series, “Get Smart.”  Click on: http://www.youtube.com/watch?v=JskJpqV7fdg

 

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  1. February 16, 2009 at 5:22 pm
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