Jack TenneyExtra Point

by Jack Tenney, Publisher

September 2015

I watched Wimbledon on my computer because it was so difficult following the ball on the television. You, too, have maybe noticed the gaps between TV sets in different rooms tuned to the same broadcast.

I sometimes have MSNBC going on two sets and my computer as I move around doing early chores, bed-making, egg-scrambling, shaving, and like that. Not only is the quality of the pictures different (like ESPN on the Internet versus on television), but the computer is also faster than the cable or DSL or Dish TV.

So, when you use trailing stop losses, how far behind the robot traders could you be? Is there a time difference between 1/16th price changes on a ten dollar stock and a thousand dollar stock?

All this worrywarting is merely a continuation of the appreciation of advantages of size. Big cap algorithm players presumably make their daily bread earning less than a penny a trade on millions of trades per day. For little capitalists, however, there are few leverage opportunities attractive only to small investors. There are option calendar spreads offering returns that only small investors can access because they can enter and exit trades without affecting the price.

Think of it this way: You live in a dorm and your T-shirt is dirty. You can shower in it and be back to go by morning. That laundry approach, by the way, is not scalable.

Speaking of other economic opportunities denied to the hedge fund gang ... Uh, can I get back to you on that? By the way, 20 squared is 400 and it took us 33.33333 years to publish this, our 400th consecutive monthly issue. Cool, eh?