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Folks:
Personally, one of the few trading instruments I stay away from is options. I
know many people make great amounts of money from them. And I always love trades
where I can quantify and limit my risk. And one of my single most profitable
trades in my career was structured with options [a down and out strategy, for
those that care...]. However, deep down, I know that when I add up all that
premium...I'd be better off if I had just traded the underlying based upon my
ideas. And trading with good money management.
But that's just me. I'm sure that leaves more for those of you that are good
options traders.
Tim Morge
Dark Hacker wrote:
>
> On Sun, 21 Jun 1998, hans esser wrote:
>
> > > If that is the case the only way that it will
> > > work is with excellent money management.
> >
> > yep, you have to know when to bite the bullet or do a "Niederhoffer" <g>
> >
> > I know someone who did similar in DAX options - he made 23 trades - 21 of
> > them been WINNERS - just 2 loosers - TWO TRADES LOST and his TOTAL
> > EQUITY was down OVERALL !!!!
>
> Without Stops or a disciplined approach to limiting losses this is easy to
> do. I pulled a Niederhoffer (much to my shame) a couple weeks ago.
> Don't ask. Tweren't pretty. Fortunately with options your total potential
> loss (on long positions) is fixed but it's desriable to control those
> losses before they occur.
>
> - Hacker
>
> Dark Hacker | Hacker and Fortress web mechanic
> The Guardians Of Computation | Fortress Of Computation
> mail: hacker@xxxxxxxxxxxxxxx | web: http://www.computation.com/pub/hacker/
> "Life itself is.... COMPUTATION!"
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