Capitalist Manifesto, Chapter 1: Things Fall Apart

To many people, capitalism is an ugly word. To many it symbolizes oppression & greed. While it is true that many self-proclaimed capitalists are greedy, it is their failure to properly implement a sustainable system that is the problem.

A barter system is generally inefficient for a global economy.  Having media of exchange for products & services (forms of money) allows commerce to happen more fully the way media of exchange for ideas (internet, television, etc.) allow communication to happen more fully.  If new information (“news”) had to go from person-to-person rather than on a mass scale, we’d evolve socially at a much slower rate.  Now, it may be that for the health of our society we ought to move more slowly, but I don’t necessarily believe that. I think it is only true if we lose control of whatever it is we’re creating.

Money by itself doesn’t make capitalism any more than food makes itself into a meal.  A working system is required to make money useful.  The system & its administration are like the processes of cooking & serving the food.  Money is the cook that prepares the meal (products/services).  The consumer is…well, the consumer.  When the system works, it is productive; when it doesn’t work, things fall apart.

The opposite of capitalism is generally accepted to be some form of communism.  This assumes that because the means of production & profits are shared, the benefits will more naturally be evenly distributed.  This is not true.  Just because everyone is sitting at the same table & no one takes explicit ownership of Thanksgiving dinner, there may still be subtle means by which resources are not evenly distributed.  Because eating habits differ, not everyone will eat the same amount of food at once.  Generally, leftovers are not divided 100% evenly.  If I like roast beef but don’t want any ham, there is no system in place that will automatically restrict someone else from eating any roast beef to account for my lack of ham consumption.  Free will (choice) is what causes systems to succeed or fail.  By this measure, I define capitalism as the economic equivalent to  free will, & as such is, in its purest state, communism (where every individual acts in the interest of “the State”) because the state of the State is determined by the mental, emotional, & physical states of the individuals that populate it.

History dictates that people cannot pursue happiness when they have been deprived of free will (self-determination). When an individual’s (private) self-determination gets in the way of the ability of others (the public) to make equal choices, however, things fall apart.  In a society where individuals make decisions as a way of life, likewise, room must be left for the emergence of the individual personality of the State (the product of the interaction of all component parts– id est, the People).  When the People can’t accept the State that they’re in, things fall apart.


08.01.11 Notes to Self

I’m in AAPL & GOOG; had an okay day today.  I would have loved to get in GMCR, which rebounded nicely from the low, but I wasn’t paying enough attention. The market was too confusing to me today. Everything seemed to gap & crap today. I’m staying with these 2 market leaders for now, keeping an eye on things & just observing.

07.27 Notes to Self

I got ballsy today after I lost a bit long on LO, buying shares of NFLX, BIDU, SLV, & GLD.  I had become less concerned with finding a perfect entry for the metals (maybe a mistake; I will see).  I was up on all of them but 1 early in the afternoon, then everything took a downturn.

At some point over the past few days, I have forgotten to ACTIVELY protect profits (was only protecting POSITION–by not getting out: emotional). I didn’t pay attention to my rules, so I paid $ instead. I made myself sleepy watching AAPL’s performance, & also letting the noise sink in. “It may run above $500.” Of course it might; that doesn’t mean it won’t revisit $300 1st!!  Luckily, I am only down a small percentage–insignificant, yet meaningful.

Dumb thing is I was sure that AAPL, @ least, was setting up for a nice short. If I saw the short early, why didn’t I sell? (Ah; because I wasn’t I wasn’t protecting profits; nvmd). Laziness made me into something other than a day-trader, probably because I’d have to start paying more attention again; I paid $ instead.

Reconsidering all positions, including AAPL. Leaning towards holding metals; prefer GLD to SLV.

Go Public!

When companies are looking to raise capital & expand, they will often have an initial public offering (IPO <example here>).  Without drawing out this analogy with all the benefits & disadvantages of such a decision, suffice it say that if you have something of value to offer over an extended period of time, this can be a very good move.

I have read many articles encouraging people to expand their web presence; my publicist chewed me out last week due to my under-exposure, & rightfully so (hence, this blog, for instance).  For the individual, “going public” means presenting as many opportunities as possible for people to invest time in you.  There are people on Twitter who could probably raise several thousand dollars at a time by offering a service or product to the people that they are exposed to, namely because of all the free help they provide on a daily basis.  There are people in every line of business presenting free information, entertainment, etc. that anyone can have access to, & their public appreciates this; that appreciation can work the same way a dollar can. When your money appreciates, it increases in value; when you are appreciated, you will increase in value.

Twitter, Facebook, & the rest can be fun ways of passing time, but if your accounts are unable to collect enough interest, they will not do you much good. Think about it–do your friends just come to you now & put money in your pocket for being sarcastic, cynical, & ridiculous all day? Do they pay you a dollar every time they read what you had for lunch, where you’re going, or whatever other random thing comes into your mind to tell the world? Probably not. Even if you are one of the more interesting more in your circle, you may be like a savings account that accrues more interest than with other banks, but still a relatively low amount of interest compared to all of your options (as with other more rewarding opportunities, however, the risk normally increases–but that is a topic for another post).

07.26 Notes to Self

Got out of POT (under $3 gain/share) & WBMD (negligible gain) early. AAPL is still moving. I missed my CF entry this morning because I was relying on my memory instead of reading my notes; maybe it was a good thing, because it only got as low as $157.18, & knowing me, I would’ve held on for the target. Either way, I’m not too thrilled with myself for this one.

I’ve been having my eye on GS, but I missed my entry some days ago; watching to see if it retraces to support between $130.5 & $132 to jump in.  I like the monthly chart; I like the weekly so far, as well.

Eye on MON for a couple days, now.

Looking for an entry into SLV.

07.25 Notes to Self

NFLX broke down, BIDU shot up.  My AAPL & POT are still growing (let your winners run). I jumped into PCLN on a 5-minute & made $5 on a couple thousand shares; up a bit on a pick from Shadow Trader (I don’t think it’s going to fill that gap, though; if it doesn’t gap up, I’m out). I think AAPL is going to keep running.

@TraderFlorida knows what the hell he’s talking about (when it comes to trading).

James Altucher said he’d do a quick Q&A for the blog–well, just 1 Q, but I’ll take it!

Watching CF for an a.m. short if I can get a good entry; not sure if I like the risk on such a high stop (over $162.25). Probably worth it. Or not. I’m probably in.

Why haven’t I bought any silver or gold yet?

Why I Love The Market

It’s like a giant chess game, with an unknown number of players.  There is madness, there is method, & there is you.  You k now that there are other participants; in fact, it’s all those other participants that accentuate the fact that, aside from one of Luck’s 2 faces, you are utterly alone.

I don’t mean to make the activity of trading sound like gambling; It is not. If it is rigged, you are the trap.  & luck, I have often heard from successful people, is the result of one’s own willingness to complete hard work.  There are days where even if you do everything right, you can still be “wrong.” There are too many variable in play all at once to ever be able to make a fully conscious decision in this realm; there are countless other invisible factors called people (this includes you, my friend).  To win against such a beast creates a good feeling.

As I am still learning, I only trade practice accounts. I consider myself a trader–however uninitiated–because I have already been seduced & no one can stop me from wanting what I want. No one can take anything from you when you trade; you lose what you give up, when you lose your grip on values–like Life.