From New York Magazine:
What’s it like to make your living trading stocks during this calamity? “Land mines are everywhere,” says Serge Milman, 35, of Ronin Asset Management on Madison Avenue. “Panic obviously rules.”How do you trade now?
I manage two accounts, one longer-term and one shorter-term. In the longer-term account, I’m buying stocks or shorting stocks that I think will go up over months, if not longer. In my shorter-term account, I try to be positive, make money every day. Over the course of this year, I’ve made a killing with the shorter-term account.Let’s talk about that shorter-term account.
For starters, there’s enough volatility intra-day that we close out almost all of our positions at the end of each day. We’ve more or less stopped holding positions overnight. Who needs to gamble on what’s going to happen in the next few days when this world is a chaotic clusterfuck?...MORE...What happens next?
Real money is made at major market bottoms. So I am slowly accumulating a lot of these beaten-down non-financial companies in my long-term account, like Warren Buffett. The key is to stay disciplined, don’t bite off more risk than you can afford. You can profit in this market. But I can’t tell you what happens next. No one can. If the world is really coming to an end, it’s out of my hands and yours.
