|
PureBytes Links
Trading Reference Links
|
In a message dated 12/1/99 1:56:55 AM Eastern Standard Time,
jimwsherwood@xxxxxxxxx writes:
<< I started reading about options. I read the financial news and
> sold off the dead weight in my account. I still had no money,
> but I convinced myself that the little I had, was enough to play
> options. (In retrospect, I was nuts!) I read a very basic options
> book, then went to a seminar in order to "Double My Money…".(joke!)
>
> It was so exciting. On the last day of the seminar, I placed my
> first trades while in class. I was so proud of myself, bravely
> following the teachers (herd). I remember it VERY clearly about
> 11:00 a.m. on DEC 6, 1996. Only a couple of hours later, my
> options began moving quickly, just as they said they would. It
> was the day I learned who Alan Greenspan was, for he then gave
> a speech using the words "irrational exuberance". It was my first
> lesson in volatility, inflated premiums, the Fed and how fast you
> can loose money. If I was to stay in, I had to learn how to play.
> Obviously, this was lesson ONE.
>
> By March 31, 1997, I had continued to place losing trades and
> dropped my account -42%. Looking back, it was a time of interest
> rate uncertainty, similar to this year and the only other bad
> losing period I have had. I had not yet learned how to "play
> the Fed". I knew nothing about the stocks I was picking. Then
> one day, I heard about Pfizer's experimental drug Viagra. Being
> in medicine, I could suddenly relate to how valuable this product
> would be on the market and to the company. A similar thing
> happened with IBM. which I also related to. By June I had regained
> my losses and the rest of the year was a winner. My PFE bought @ 5
> were sold for 28 1/5. This was lesson TWO.
>
> What I had learned was to play things I understood, play companies
> I knew something about and only things I could relate to. Play
> where I had an edge on the next guy. We all have an edge, that
> gives us a second sense about the right play. Start with your own
> knowledge base & interests and become a sponge to news about those
> companies. Play this inherent strength, until you can learn to
> understand basic technical analysis. Never buy an option on a
> company you know nothing about. This one change put me in winning
> positions for years to come. I have continued to add to my
> knowledge base. Lesson THREE.
>
> My question to you is, just when did I start learning how to play
> options and the financial markets? Did I begin learning in 1996,
> with this first trade? Or did I begin learning while in bed with
> my Daddy, at age 6? My point of course, is never think your
> children are too young (or you are too old) to learn. Everything
> you do, read or hear, that is even remotely associated with
> finance, will add to their knowledge. Can anyone say Pokemon?
>
> My Dad had NO IDEA what foundation he was laying for me. Imagine
> if we all spent just a little bit of time, explaining simple
> concepts of wins and losses with kids. Imagine if they dissected
> our mistakes, or went to a basic seminar. It may well resurface
> years later. It may be the best gift you could possibly give them.
> For me, the early lessons from Dad, beginning at age 6, certainly
> was a life long gift.
>
> Thank you Daddy, for giving me a head start. I love you, miss
> you and wish you were still here, to see me now. You were the
> smart one!!!
>
> Renee >>
|