Have Some Perspective

I puked once during a losing trade.  It wasn’t like a full-on “too many shots of Jäger” puke, but more like one of those sick to your stomach, “I can hold it in, I can hold it in”, dry heave type of pukes.

Puking has no place in the world of trading.  It should be reserved for rollercoaster’s, twenty-first birthday parties, and State of the Union addresses, and it was a sign that I was way too emotionally invested, instead of being objective and dispassionate.

I couldn’t help it though.  Each losing tick of that trade was like a dagger to my stomach.  I wasn’t even losing that much money, but it seemed as if I was in a tail-spin that I could not pull out of.

My field of vision narrowed to the point where the only thing that I knew still existed anymore was my trading screen.  Like Billy Mumy’s character in the Twilight Zone, I had wished everything except that damn screen into the cornfield.

All perspective was lost on that trade. That trade had become my whole world and everything about me.  My value as a human being and my place in this universe was dependent on the outcome of that trade.

In retrospect it’s not surprising that my trading was out of control, as I was going through a tough period in my life.

I was recently married, imprisoned in a business I hated but was too afraid to walk away from, and my ultimate fear, having children, seemed to be coming towards me like a runaway freight train. All this was messing with my head and I couldn’t trade my way out of a paper bag.  Day after day I was making bad choices, ignoring risk management, and pulling my stops, and it felt like there was nothing I could do to change.

Then John Nutting died.

My first memories of John start right after my family moved into our brand new tract home back in 72′.  He and his family were “original settlers” as well, having moved in just a week before we did.  One day there was a knock on our door and when my dad opened it, there was John.  He explained that he was getting all the “guys” in the neighborhood together to help out on a project.

It seemed that when the movers delivered all their belongings to the Harker family down the street, they refused to move the piano into the house and had just left it out on the driveway. John reasoned that if all the guys put their heads (and backs) together, they could figure a way to get that sucker in.  That’s the type of guy John was.

I will never forget the wonderful scene I watched that warm summer day as my new friends and I rode our bikes around the cul-de-sac.  There had to be ten fathers standing around that piano, studying it with intent looks; each proposing options and methods of ingress.

But the best part of the show was how after all the grunting, and yelling, and sweating was done, a case of cold domestic beer miraculously showed up, and this newly formed “band of brothers” luxuriated in the afternoon shade, reveling in their Herculean feat.

My father liked John right off the bat, which is probably why I initially liked him as well. Like my dad he too was handy, and his garage was full of old radios, vintage bikes, and a 57′ Chevy, all of which were in various states of repair.

When you’re a kid you regard adults as if they are entities from another world. You can’t relate to them, and the more they try to relate to you, the weirder it gets.  But with John it never seemed that way.  As a kid, talking with him was like talking to a best friend; always a relaxing and easy endeavor.

A fixture in the neighborhood; if you didn’t see him on one of his twice daily jogs, or working on a project in his garage, you would inevitably run into him at the local supermarket where he was the manager.  He was always there to help, always there to lend a hand, always the embodiment of the concisely descriptive Yiddish word “Mensch.”

As I got older and moved away from my parent’s house I saw John less frequently. When I would go to visit, it was strangely reassuring though to drive by his house and receive the same friendly wave I had remembered since I was a kid.

After my father died, John always made a point of checking in on my mom to see if she was okay or if there was anything she needed fixed around the house.  My mother would talk to him on a regular basis, and on some level he became a proxy male presence in her life in all the best and most platonic ways.

One day in 2003, after forty plus years in the grocery industry, John had finally decided to retire.  His wife and he planned to travel the country in the new RV that was already parked in front of their house.  A large portion of that travel involved visiting his grown daughters and his numerous grandchildren of whom he spoke about with great joy.

One month to the day that he was to retire, John got a call from the manager of one of his company’s other locations wanting to know if he could cover his shift.  Always willing to help out a fellow employee John agreed.  He phoned his wife at work to let her know the change of plans and walked out the door.

Less than three hours later he was dead, lying in a pool of his own blood, with a samurai sword driven through his heart.

That morning a mentally deranged employee entered the store, spoke to the floor manager, then drew a sword from under his coat and in one stroke nearly decapitated her.

A fellow employee recalled at John’s funeral what happened next.

Customer’s and employees ran for cover as the swordsman looked for other victims. People were running away and those trapped in the store began to grab items off the shelves like trashcan lids and beach chairs to defend themselves.

John was in his office away from the initial attack, but came running out when he heard the commotion.  As he saw the killer chase after and wound other victims, he ran towards him trying to distract his attention, putting himself directly in harm’s way.

He tried to talk to him and reason with him but the attacker took his sword and ran it through John.

John died a public but lonely death.  There was no last kiss from his high school sweetheart wife.  No final encouraging words for his loving daughters.  No last press of a slight hand from the grandchildren he cherished so much.  All there was, was a cold steel blade robbing him of every moment he had ever lived or ever would live.

Perspective can come to us in both subtle and dramatic fashion.  John’s death brought it crashing into my life in a way that made me feel small and petty.

Just days before my head was “messed up.”  I was going through a “tough period in my life.”  I was “spinning out of control” and I was puking.  Why?  Because the red and green lines on my computer screen were not doing what I wanted them to do.

It’s easy at times to forget that this is what we are doing; trying to make money off the movements of the red and green lines on our screens.

And it’s hard on a daily basis to keep macro events like John’s senseless death in mind to provide us with perspective.  Our brains are not wired that way.  But without perspective, we often lose the context that keeps us balanced and reminds of this great gift called life, and the good things it has given us.

I try to remember that when I am at a light and see a man in a wheelchair cross in front of me.  Or when I read of the wife and child that a fallen soldier or policeman has left behind.  Or when I feel that I don’t have enough, when I have so much.

Although I still occasionally wring my hands or shout out a brief curse word when a trade doesn’t go my way; I haven’t puked ever since John’s death.  And the thought that I could have lost so much perspective that I once did, makes me feel silly and ashamed.

The Los Angeles Times Report On The Incident That Caused John’s Death

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(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

Chúc Mừng Năm Mới

For those of you that have not been part of a large extended Vietnamese family for the last 20 years, that phrase roughly translates to “Happy New Year,” and hearing it signals the beginning of Tết, or Vietnamese Lunar New Year, which begins tomorrow.

This is by far the most important and most popular holiday in the Vietnamese culture and preparations by local businesses and community organizations go on for weeks ahead of time.

Unlike the American version of New Years, where the traditions are usually limited to a midnight countdown and speculating as to if Dick Clark makes it another year, Tết has a number of specific and symbolically important customs.

These include the giving of lucky red packets of money to children called (li xi), visiting family and friends, and creating an altar to pay respects to ancestors.

This last tradition is what gives Tết an interesting balance.  Though it is a forward-looking renewal of sorts marking the arrival of Spring (based on the Chinese calendar), it is also firmly rooted in the past, with an important emphasis put on paying respects to ones ancestors.

Although for the non-Vietnamese it may be hard to fully understand all the significance attached to Tết, it is easy to see the pride, and joy, and energy that Vietnamese people put into this wonderful celebration of culture, food, family, and life in general.

Read Wikipedia’s Entry About Tết

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

 

 

 

 

Video: Navy SEALs Being BAD ASS…!!!

Oh, I have connections….

Well not really, but one of my best friends is a Navy diver and part of his job is to help with the training operations in Coronado.

This video shows Navy SEALs taking a simulated Somali pirate ship by force.

….and this is just a training operation.

Let’s never forget that it’s guys and gals like this that help make it safe for us to sleep at night.

The Non-Profit Navy SEALs Fund

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

How To Determine Overall Market Health: Talk To Your Dentist.

The market has been on a nice run lately and many people think that the worst of our economic problems are behind us.  In fact recently somebody told me that they were beginning to buy stocks “like crazy.”

The problem is, the person who told me that was my dentist.

There is an old saying that goes something along the lines of “when your dentist tells you to buy stocks, it’s time to sell,” (a variation on the “Time magazine cover” theory).

The concept behind this saying is that there always has to be a “greater fool” to sell your stocks to at a higher price in order to make money.  This greater fool is also referred to as “dumb money.”

Your dentist’s day is presumably filled up with important dentally things like patients, cavities, and spit.  He doesn’t have time to watch the markets on tick by tick basis because his focus is on running his practice.  The theory goes, that by the time the markets have come into his purview, it’s usually via the constant attention given to them by the general mass media.

By that point everybody that is going go be in the market already is, and when the dentist buys he will have nobody else to sell his stocks to at a higher price and thus becomes a “bicuspid bagholder.”   Hahaaa…hah…hah….biscup bag…..see….cause he works on teeth…hah…hah…..get it?   Meh….!

Besides the dentist indicator, I have seen other non-traditional indicators of market health over the years.

For a long time, the amount of space my local bookstore dedicated to “Investing” titles could give me a clue.  When the market was going crazy in the dot-com bubble of the late 90′s, it seemed as if they occupied shelves that went on for miles.  But after the bubble popped they were reduced to one lonely “Charlie Brown” type shelf in the back corner of the store.

The sudden appearance of TV commercials for trading services or study courses can often be an indicator that you might want to start raising cash.  And if you hear the terms “Ka-Chin-Go” or “Gorilla Trades,” run for cover.

But in the last couple of years I have started to see some correlation between the actions of what I call “Financial Superstars” and that of the market.  It’s something you might want to keep on your radar.

Take for example the following chart showing the Dow Industrials topping on April 29th,  2011….

Now look at this article from the New York Times, dated April 29th, 2011….

Coincidence……?????

Hey, I’m not saying that Erin Burnett’s move to CNN “top-ticked” the market……but if Maria Bartiromo suddenly changes networks, I’m getting the survival gear out and moving my family to a cave in the mountains.

30 Years Of Time Magazine Covers & The Stock Market (via The Big Picture)

The American Dental Association

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

 

 

 

 

 

How To Get Around The Blackout On Wikipedia.

Wikipedia has a lot of nerve blacking our their pages today.  Where do they get off limiting access to the valuable knowledge and information source that we pay nothing for?  Why don’t they just color the site red like the commie bastards they are?

But here is how you get around it.  When you hit a link to Wikipedia, there will be a 2-3 second delay before the page changes over to their “blackout page.”  Just hit Alt-Print Screen on your keyboard at that moment and you can paste the image into MS Paint or any other viewing program.

I hated to do this but I needed to get access to Wikipedia for an important project I was working on….

STOP SOPA (Google)

SOPA Explained: What It Is And Why It Matters (CNN Money)

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

 

The One Page Wikipedia Is NOT Blacking Out.

Stop Online Piracy Act (Wikipedia)

SOPA Explained: What It Is And Why It Matters (CNN Money)

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

One Of The Best Movies You’ve Never Seen: Poolhall Junkies

I thought this would be the film that  launched Mars Callahan’s career into the stratosphere.  In addition to writing, directing, and staring in Poolhall Junkies, he assembled a stellar cast that includes, Christopher Walken, Chaz Palminteri, Rod Steiger, Rick Schroder, and Michael Rosenbaum.

Check out this classic scene between Walken and Palminteri.

Unfortunately Hollywood is a fickle bitch-goddess and Poolhall  Junkies was barely noticed by the public before going into DVD heaven.

Still, it’s in my top-ten list and worth a watch.

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

A Cautionary Tale For Any Company Wanting To Buy Research In Motion.

When I first heard the rumor yesterday that Samsung might buy Research In Motion, my cortex snapped, momentarily throwing me back to the mid 90’s.  As the sounds of INXS wafted thru my head, I re-visited a previous episode where Samsung attempted to buy and turn around another failing company.

AST Research was a PC maker whose story was taken right out of the best “rages to riches” narrative America has to offer.  Started in a garage in 1980, three immigrants, Albert Wong, Tom Yuen, and Safi Qureshey built AST into a Fortune 500 company and the 4th largest computer maker in America by 1993.

At its height AST was doing $2.5 billion dollars in annual revenue and being visited by then President George Bush Sr.

                         My first AST computer had a MASSIVE 200MB hard drive.

Unfortunately AST did not respond to the changes in the computer industry and soon began a long descent that would culminate with Samsung picking up their broken pieces.

It’s failure to recognize the movement towards commoditization of the PC was its downfall.  AST stubbornly insisted on developing and using its own components in the PC’s it produced, instead of those of specialized OEM’s.  In fact, a common saying used at AST to dismiss other computer companies like Dell was “the best technology they have is a screwdriver.”

As AST began to have its first losing quarters in 1995, Samsung in an attempt to get a foothold in the PC market, bought 40% of the company for $378 million dollars.  As AST’s fortunes faded, Samsung continued to pour money into the company and finally bought it outright for cash and debt assumption in 1997.

When the dust had cleared Samsung had dropped over $1 billion dollars into AST who at the time the deal closed had 11 consecutive quarters of losses.

Samsung was eventually forced to close the company and sold AST’s name and service contracts to various independent vendors.

  Usually having the President show up at your company is a good thing. Usually…!!!

This cautionary tale serves as a warning in a number of ways should Samsung or any other company in fact decide to purchase RIMM.

Technology moves fast, (faster now than in the 90′s), and if you don’t stay on the cutting edge of it you’ll get left behind.

Once a “break” in a former market leader starts, its downward momentum can prove to be the self-fulfilling cause for its ultimate demise.

And although large mature companies like Samsung have tremendous money and resources, they often don’t understand the dynamics of a smaller company, nor are they nimble enough to save them once they have gone past a certain point.

Times have changed and Research In Motion might in fact prove to be an asset to somebody.  But if I was the lead man on the deal team, I would take a quick trip up to Samsung’s lower Siberian office, and at least have a “chat” with the man there who once stated “I am making the decision that we will buy AST Research.”

                        “Sure it’s cold in here, but I stand by my decision.”

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

So You Want To Reform Wall Street? Okay, First Let’s Talk About The Real One Percenters.

As a kid I used to have NFL bed sheets and a Kenny “The Snake” Stabler poster on my wall.  The highlight of my week was when my dad and I would bet each other on the outcome of the Monday Night Football game. And like every other red-blooded American boy, I knew all the teams, all the rules, and all the stats of my favorite players.

Then I discovered girls and let’s just say that I became pre-occupied with a different kind of snake…….hiyoooo!!!

I hadn’t really seen a football game in over 25 years until last week when I watched the Broncos beat the Steelers in overtime.  It was a thriller but I couldn’t believe what had been done to the game I once cherished so much.

Stopping play in the middle of a game to do a video review?  An overtime procedure that is so complex the network had to put a graphic on the screen just to explain it?

I missed the opening coin-toss but suspect the announcer called it something like this;

…. we have the captains of the Broncos and the Steelers, as well as their respective legal teams, approaching mid-field.  There’s the toss, and it’s “heads”, which gives the Broncos the choice…..wait a minute, we have an objection from the Steelers’ lead counsel.

He’s arguing that an unexpected gust of wind arose at the moment of “toss”, unfairly skewing the results.  A motion has now been put forth and they are retiring to the referees chambers to review the video.

I get it, I’m the one out of the loop here since challenge’s have been going on for over a decade, but last I remember everybody was making fun of the USFL when they tried a similar thing.   I mean c’mon, could anything good have come out of a league that gave us the Washington Federals or the Arizona Wranglers?

I would have thought that if something like this was even remotely suggested, the zombie corpse of Vince Lombardi would have risen from the grave and started ripping people’s jugulars out.

It’s just hard to believe that the man who the Super Bowl trophy is named after would ever say; “Football is like life – it requires perseverance, self-denial, hard work, sacrifice, dedication and respect for authority.  Now let’s look at the video tape.”

                  (This is NOT the poster of Kenny Stabler that I had on my wall.)

And hyper-legalism isn’t just in football, it has made its way into almost every aspect of our lives over the last thirty years.  Nowhere is that more apparent than on Wall Street.

Bloomberg’s William Cohan recently wrote a great piece echoing that sentiment entitled “Wall Street Justice System Is a Kangaroo Court,” where he details how the gatekeeper between employees and customers of every Wall Street firm is the benignly named but legally complex “initial agreement.”

Probably unbeknownst to the millions of people who interact with Wall Street every day — either as brokerage customers or as employees of Wall Street firms — there is a price of admission to this world tucked deep inside the boilerplate documents that one must sign to open an account or to get hired.

This catch is a nonnegotiable agreement for when disputes arise, say, about a bonus promised but not paid, or about a rogue broker who sticks his client’s money in a synthetic collateralized debt obligation that goes bust.

Under the deal, the only venue to litigate the claim is a mediation or arbitration process overseen and administered by the Financial Industry Regulatory Authority, Wall Street’s powerful self- regulatory organization.

The article goes on to illustrate how these agreements in fact have been very effective in insulating Wall Street firms from any actions brought against them by disgruntled employees or unhappy account holders.  Everything that Cohan says is true, but he paints with too broad of a brush in terms of why Wall Street firms use these agreements.

The populist line is that these agreements allow Wall Street firms to act with virtual impunity and give them overly broad protection from inappropriate and unethical actions. Really….no duh!

But what the “I-can’t-hold-two-different-but-related-thoughts-in-my-head-at-one-time” crowd fails to understand is that there is another valid reason these agreements are used; Wall Street firms have deep pockets that the overly litigious public and their unscrupulous lawyers love to go after.

Recently I wrote about a terrible accident at my house when my two-year old son pulled a boat of hot gravy off the counter onto himself on Christmas day, receiving second degree burns. As I related the story to people over the following week I was surprised by a response I consistently received.

“Was there anyone I could go after?”

Would that be the manufacturer of the gravy boat for not putting a “don’t let hot gravy fall on a child” warning sticker on it?  Or the builder of our house who 43 years ago made a counter low enough for my son grab the boat from?  It probably should be me for not doing a pre-Kotter Travolta on him and just sticking him in a plastic bubble.

This is the mindset that pervades America today and forces businesses to guard against.

So you have an agreement that protects Wall Street firms from unfounded lawsuits but also gives shelter to their misdeeds.  How do you remedy this?  By more laws?  By more regulation?

No, you write clearer, simpler laws and regulations,  use common sense enforcement, and institute tort reform. This is what is needed before any “revolution” will work.

In the world of programming there is a term called “spaghetti code.” It’s used to describe code that creates a facade to hide what is really going on behind the scenes.

The code is generally not well-formed, often untested, and creates maintainability issues. The code is strewn together in such a way that pulling one piece of it (like spaghetti in a bowl) creates unintended consequences.

We currently have “spaghetti laws” on Wall Street and in most of American today, and adding more laws and regulations on top them will only make matters worse.  As laws get more layered and complex they don’t get clearer, but more opaque and farther away from an objective truth.  This has led us to our current dilemma.

When you are a nation built on laws, but foster a climate in which only a privileged few know how to interpret and manipulate those laws, you have then created a ruling 1% that is just as powerful as any Wall Street fat-cats.

These one percenters are called lawyers.

(Insert mandatory lawyer joke here: What’s the difference between a catfish and a lawyer?  One is a scum-sucking bottom feeder……the other is a fish!)

And despite what Hollywood portrays on-screen on a regular basis, legal resources are not limited to the rich.

Lawyers are pulled forward by money as much as they are driven from behind by it.

You want to reform Wall Street; reform the legal system first.

You want to reform the healthcare industry; reform the legal system first.

You want to make the US more business friendly; reform the legal system first.

You want to encourage small business (the number one job creator); reform the legal system first.

So while you occupy Wall Street, make sure to occupy the offices of the law firms who drive MD’s out of small towns, bankrupt billion dollar companies like Dow Corning with scare tactics alone, and keep barriers of entry high for small businesses.

If you are going to throw the scoundrels out, throw them all out, or shut the fuck up!

I’m The Jerk In The Car In Front Of Me (bclund)

Wall Street Justice System Is a Kangaroo Court (Bloomberg)

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

 

121 Years Of National Geographic In Your Hand. Now My Grandfather Will Finally Forgive Me.

About ten years ago I faced one of those times in life that is as unfortunate as it is inevitable.

My grandmother had gotten to the age where she was no longer able to live by herself; my grandfather having passed away five years earlier.  Even though the assisted living facility she was going to was very nice and still gave her a semblance of freedom, it was hard for her to leave behind her home and the memories that existed in it.

My job was to get her moved and to help along the process of thinning out the decades of items they had accumulated.  This included about thirty years worth of National Geographic magazines that my grandfather had saved.

As silly as it may seem I felt a terrible twinge of guilt as I threw them in the trash bin. My grandfather fancied himself an intellectual and each issue was annotated with his thoughts and ideas about the articles.  I knew how much he valued knowledge and throwing away all his reading, thinking, and writing like so much waste made me feel like shit.

But now the cleansing waters of technology have allowed me to finally break free of that guilt.

Nat Geo has put every single issue they have ever published, 121 years worth, on DVD.

1,400 issues.  200,000 hi-res photos.  8,000 articles.  Every single one from 1888 to the present, even including the original ads.

My grandfather would love this if he were alive and I think it probably gets me off the “hook”.

The Complete National Geographic (National Geographic)

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)