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<p class=MsoNormal><span class=EmailStyle18><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>Robert<o:p></o:p></span></font></span></p>
<p class=MsoNormal><span class=EmailStyle18><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'><![if !supportEmptyParas]> <![endif]><o:p></o:p></span></font></span></p>
<p class=MsoNormal><span class=EmailStyle18><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>Thanks for
being kind.<span style="mso-spacerun: yes"> </span>I really know nothing
about this guy other than what George has told me.<span style="mso-spacerun:
yes"> </span>All I know is that George has been doing this for over a
year now, and is currently pulling in about 40% a month.<span
style="mso-spacerun: yes"> </span>Impressed me but not enough to attend a
Wade Cook seminar.<span style="mso-spacerun: yes"> </span>I just might
spend a few days with George to see what he’s doing.<span style="mso-spacerun:
yes"> </span>I think he’s writing covered puts and calls, but again I’m
not sure.<span style="mso-spacerun: yes"> </span>When he writes his
options, he has locked in whatever profit he can generate and just has to wait
for the time period to expire.<span style="mso-spacerun: yes"> </span>For
most of the time, I think he has been writing covered puts and pocketing the
fees since we’ve been in a pretty bullish market.<span style="mso-spacerun:
yes"> </span>As George puts it, he feels he can’t lose.<span
style="mso-spacerun: yes"> </span>The worst case is he has to deliver his
stock.<span style="mso-spacerun: yes"> </span>Best case is the options
expire and he writes some more puts.<span style="mso-spacerun: yes">
</span>Granted, in the worst case, he will lose the paper profits he might have
made.<span style="mso-spacerun: yes"> </span>Now, my thought here is,
what happens if the market turns to poop?<span style="mso-spacerun: yes">
</span>He gets the fee from the option he wrote but whoever bought it doesn’t
want the stock because the strike price is too high, so he’s lost money on the
stock.<span style="mso-spacerun: yes"> </span><o:p></o:p></span></font></span></p>
<p class=MsoNormal><span class=EmailStyle18><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'><![if !supportEmptyParas]> <![endif]><o:p></o:p></span></font></span></p>
<p class=MsoNormal><span class=EmailStyle18><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>Anyway, I’ll
give him a call next week to have him tell me again, and I’ll take notes.<span
style="mso-spacerun: yes"> </span>All I know is that he works less than
20 hours a month.<span style="mso-spacerun: yes"> </span>In November and
December he pulled in $25k a month.<o:p></o:p></span></font></span></p>
<p class=MsoNormal><span class=EmailStyle18><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'><![if !supportEmptyParas]> <![endif]><o:p></o:p></span></font></span></p>
<p class=MsoAutoSig><!--[if supportFields]><span class=EmailStyle18><font
size=2 color=navy face=Arial><span style='font-size:10.0pt;mso-bidi-font-size:
12.0pt;font-family:Arial'><span style='mso-element:field-begin'></span><span
style="mso-spacerun: yes"> </span>AUTOTEXTLIST \s "E-mail
Signature" <span style='mso-element:field-separator'></span></span></font></span><![endif]--><font
color=navy><span style='color:navy'>Regards,</span></font><font color=navy><span
style='color:navy;mso-color-alt:windowtext'><o:p></o:p></span></font></p>
<p class=MsoAutoSig><font size=3 color=navy face="Times New Roman"><span
style='font-size:12.0pt;color:navy'><![if !supportEmptyParas]> <![endif]></span></font><font
color=navy><span style='color:navy;mso-color-alt:windowtext'><o:p></o:p></span></font></p>
<p class=MsoAutoSig><font size=3 color=navy face="Times New Roman"><span
style='font-size:12.0pt;color:navy'>Guy </span></font><font color=navy><span
style='color:navy;mso-color-alt:windowtext'><o:p></o:p></span></font></p>
<p class=MsoAutoSig><font size=3 color=navy face="Times New Roman"><span
style='font-size:12.0pt;color:navy'>Fax (630) 604-1589</span></font><font
color=navy><span style='color:navy;mso-color-alt:windowtext'><o:p></o:p></span></font></p>
<p class=MsoNormal><!--[if supportFields]><span class=EmailStyle18><font
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12.0pt;font-family:Arial'><span style='mso-element:field-end'></span></span></font></span><![endif]--><span
class=EmailStyle18><font size=2 color=navy face=Arial><span style='font-size:
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<p class=MsoNormal style='margin-left:.5in'><font size=2 color=black
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma;color:black'>-----Original
Message-----<br>
<b><span style='font-weight:bold'>From:</span></b>
owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]<b><span
style='font-weight:bold'>On Behalf Of </span></b>Robert C. Richmond<br>
<b><span style='font-weight:bold'>Sent:</span></b> Tuesday, February 15, 2000
6:39 AM<br>
<b><span style='font-weight:bold'>To:</span></b> metastock@xxxxxxxxxxxxx<br>
<b><span style='font-weight:bold'>Subject:</span></b> Re: Trading goals &
Wade Cook</span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'><![if !supportEmptyParas]> <![endif]><o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt;color:black'>I will try to
be as fair here as Guy is in regard to Wade Cook. I too have never
attended a Wade Cook stock or options seminar. I did listen to him years
ago when he was peddling real estate strategies. I have also been
innundated in our radio market with his infomercials and I have listened to the
promo's he mails out. The material can indeed excite one for the riches
the market can produce. In my opinion Wade Cook may be as irresponsible
as he is enthusiastic. It is too easy for a listener, especially an investment
"greenie" to think that because Wade has a "system" that he
teaches, that the "system" will work for anyone who trys to follow
it. So many of these "systems" really amount to "buy-low" -
"sell high". And as one who trades almost exclusively in
options, I know how easy it is to show <u>some</u> spectacular short term
profits. But most of us realize the dangers and routinely experience the
losses that make us wonder how the "genius" within us can be so
fickle. I feel the innocent converts of his "systems" may
not be sufficiently grounded in the risks involved. I suspect your's
freind's success is shared by some others who have been awakened by Wade Cook
and learned from him. But I also suspect that most attendees of his
relatively expensive seminars will never recoup their tuition. <br>
</span></font><font color=black><span style='color:black;mso-color-alt:
windowtext'><o:p></o:p></span></font></p>
<p style='margin-left:.5in'><i><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black;font-style:italic'> I don't know
anything about this Cook chap, other than what</span></font></i><font
color=black><span style='color:black'> </span></font><font color=black><span
style='color:black;mso-color-alt:windowtext'><o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-right:.5in;mso-margin-top-alt:auto;mso-margin-bottom-alt:
auto;margin-left:1.0in'><i><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black;font-style:italic'>George told me. I
don't know if this system is peculiar to our current</span></font></i><font
color=black><span style='color:black'> <br>
<i><span style='font-style:italic'>market and won't work in other markets or
not.</span></i> </span></font><font color=black><span style='color:black;
mso-color-alt:windowtext'><o:p></o:p></span></font></p>
<p style='margin-right:.5in;margin-left:1.0in'><i><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt;color:black;font-style:
italic'>Regards,</span></font></i><font color=black><span style='color:black'> </span></font><font
color=black><span style='color:black;mso-color-alt:windowtext'><o:p></o:p></span></font></p>
<p style='margin-right:.5in;margin-left:1.0in'><i><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt;color:black;font-style:
italic'>Guy</span></font></i><font color=black><span style='color:black'> <br>
<i><span style='font-style:italic'>Fax (630) 604-1589</span></i> </span></font><font
color=black><span style='color:black;mso-color-alt:windowtext'><o:p></o:p></span></font></p>
<p style='margin-right:.5in;margin-left:1.0in'><i><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt;color:black;font-style:
italic'>-----Original Message-----</span></font></i><font color=black><span
style='color:black'> <br>
<i><span style='font-style:italic'>From: owner-metastock@xxxxxxxxxxxxx [<a
href="mailto:owner-metastock@xxxxxxxxxxxxx";>mailto:owner-metastock@xxxxxxxxxxxxx</a>]On</span></i>
<br>
<i><span style='font-style:italic'>Behalf Of URNMOR@xxxxxxx</span></i> <br>
<i><span style='font-style:italic'>Sent: Monday, February 14, 2000 7:01 PM</span></i>
<br>
<i><span style='font-style:italic'>To: metastock@xxxxxxxxxxxxx</span></i> <br>
<i><span style='font-style:italic'>Subject: Trading goals</span></i> </span></font><font
color=black><span style='color:black;mso-color-alt:windowtext'><o:p></o:p></span></font></p>
<p style='margin-right:.5in;margin-left:1.0in'><i><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt;color:black;font-style:
italic'>To be very successful as a trader what should one expect for a yearly
return</span></font></i><font color=black><span style='color:black'> <br>
<i><span style='font-style:italic'>on their trades. I am not referring to
a day trader or a florr trader but</span></i> <br>
<i><span style='font-style:italic'>one whose philosophy is to buy and sell a
position normally within 30 to 60</span></i> <br>
<i><span style='font-style:italic'>days. I am trying toestablish a goal
but I am also looking for a benchmark.</span></i> </span></font><font
color=black><span style='color:black;mso-color-alt:windowtext'><o:p></o:p></span></font></p>
<p style='margin-right:.5in;margin-left:1.0in'><i><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt;color:black;font-style:
italic'>Thanks for any assistance</span></font></i><font color=black><span
style='color:black;mso-color-alt:windowtext'><o:p></o:p></span></font></p>
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</x-html>From ???@??? Wed Feb 16 09:05:42 2000
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From: "Glen Wallace" <gcwallace@xxxxxxxx>
To: "MetaStock listserver" <metastock@xxxxxxxxxxxxx>
References: <20000215161759.22208.qmail@xxxxxxxxxxx> <38AA118C.DF528170@xxxxxxxxxxxxx>
Subject: Re: Trading goals
Date: Wed, 16 Feb 2000 07:18:40 -0800
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Status:
Well said, Vitaly. The beginners here would be wise to reread this post.
----- Original Message -----
From: Vitaly Larichev <vitaly@xxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Tuesday, February 15, 2000 6:55 PM
Subject: Re: Trading goals
David Bozkurtian wrote:
> I say double the indexes, or else why bother?
Anybody to bid higher <g>?
On more serious note, my own experience very much confirms what I heard at the very
beginning of my trading "career", but ignorantly ignored - a major issue to tackle
when trying to get better in trading is to learn yourself, in particular finding your
"pain threshold". In the markets you can make as much money as you wish. I believe
it's true. The catch is the higher return you expect, the more risk involved. Mind
that we are talking here not about chances to loose some or all money, we all a kind
of accept the idea that losses are probable and more, inevitable. No, here the issue
is your psychological ability to go through large drawdowns, streaks of losses, etc.
However good a system is (double, triple the indices), it wouldn't be really good if it
deprives you of sleep, spoils relationships, i.e. disrupts your life. The problem is that
no system testing, however thorough, or paper trading - all kind of training available,
will help to know yourself until you get into the real, with real money and excitement of
happening on the markets that is very difficult to avoid day in, day out. One pays for
this knowledge by his/her own money. To find some basic system which you are comfortable
with,i.e. whose "moves" do not exceed your "pain threshold", is the most important part
of making a good trading system. Unfortunately, this concept of "pain" is not marketable,
so all ads to advertise trading systems are filled with mind boggling annual return
numbers. Even if they are real (let's make this wild assumption for the sake of arguments
<g>), in vastmajority cases I ( the way I am as a personality) won't be able to follow
them to get these returns. Van Tharp in his book "Trade your way to financial freedom"
notes to the effect that there are million ways to make money in the markets, but it's
very hard to find your own one. By the way, all above is discussed in much better ways
in his book which I highly recommend if you are at the stage when you feel a need to learn
about psychology of trading. Also, the interviews with market "wizards" in J. Schwagwer's
books "Market wizards" and "The new market wizards" are very enlightening too.
Now, back to the benchmarks. Certainly, a trading system should be better than the
markets, otherwise why bother, indeed? If you have one that is better, AND you ARE
comfortable trading with it, work on it further getting concerned now with returns.
This is a sequence of steps to go, IMHO.
Thanks for bearing with me, was a bit too long.
Cheers, Vitaly
> From: URNMOR@xxxxxxx
> Reply-To: metastock@xxxxxxxxxxxxx
> To: metastock@xxxxxxxxxxxxx
> Subject: Trading goals
> Date: Mon, 14 Feb 2000 22:01:06 EST
>
> To be very successful as a trader what should one expect for a yearly return
> on their trades. I am not referring to a day trader or a florr trader but
> one whose philosophy is to buy and sell a position normally within 30 to 60
> days. I am trying toestablish a goal but I am also looking for a benchmark.
>
> Thanks for any assistance
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