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>How can anyone manage that much money and not know the basics of money
>management and risk control. The position went against them and they froze
>like a deer in the headlights. Sorry they got bailed out. That kind of
>stupidity should pay the price. Will they wake up and work on their exits
now
>or will they blame others for their losses and do the same thing over
again..
>
>Chuck
> http://traderclub.com/
Chuck, I agree with you completely. Thats why we are up around the clock,
someone always is watching the markets here. We have shifts between the
brokers and when the crash hit in 97 we camped out at the office for a few
days. All the big hedge firm that I worked for did was write options, at
least that was 90% of what we did. Our positions were much bigger than in
97 than Victors were, however the difference was we had the cash to meet the
margin calls. Knowing that you may need to bail yourself out and keeping
reserves on hand is essential. When you sell options in a big way you had
better have the money to back your play. If Vic had the money reserves in
the first place to meet the margin calls he'd wrote another book and been
hailed a Super Trader! I dont know how anyone can get burnt (like I'm sure
we all have) and keep coming back for more? Must have been on drugs and
didn't fear the possibility of a crash. I always have a back up plan and I
will not hesitate to use it. In fact its in place all the time so the
agonizing decision of what to do and when to do it is already a order in the
market. Its very very far away but much higher than a ZERO!
MB
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