The Best of Kass

Those who prefer to dwell in the caves of permabears (and utter Cassandra-like warnings all the time) will likely not be rewarded. Nor will the permabulls (who only see the world in rose-colored glasses) be rewarded as gains will probably be short-lived and price action choppy.

I have recently promised that I would post more trading ideas in the environment I forecast of trendless price action, and that is what I have tried to do over the last two weeks.

You will continue to see more rentals than long-term leases from me in the months ahead.

In regione caecorum rex est luscus!

At the time of publication, Kass had no positions in stocks mentioned.

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A Reminder on Risk Control
Originally published on Thursday, Aug. 2 at 1:59 p.m. EDT.

Here's why I put the brakes on my GM trade.

I want to make something clear (in response to a question that subscriber "B137" asked in the comments section).

B137 asked, "You loved General Motors (GM) at 22 and 23 and you are now selling it at 20 -- hoping lower?"

First of all, I often trade around investment positions such as General Motors.

Second, more often than not, risk control and discipline are more important than individual stock selection.

It's like at the poker table. You don't have to win the majority of the hands -- you just have to win the big pots!

It is often far easier to say (than execute) that it is important to let your profits run (e.g., Ocwen Financial (OCN) and Altisource Portfolio Solutions (ASPS)) and to stop your losses before they get out of hand!

At the time of publication, Kass had no positions in stocks mentioned.

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.

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