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Get rich quick schemes abound in this market and most will fail at the
first sign of trouble. Competing with the professionals in this field of
endeavor is no less demanding than competing with the professionals in
other lines of endeavor be it the law, medicine, accounting, management
or whatever. For whatever you want to do in life you must acquire an
education and learn and practice the trade. This party in the financial
markets is going to end badly one day and those without adequate
preparation will lose their easily acquired fortunes. One final note ...
money is made in options by selling premium, not buying premium ...
those who have been fortunate enough to have a good run buying calls in
this bull market had better sock those profits away because the odds are
against them if they continue to play the same game.
Bottom line, the business of making money in the financial, option, and
commodity markets is not glamorous ... it is a disciplined task of
grinding out trade after trade, controlling risk, and being in the right
position when those occasional long runs do hit. Those who seek glamour
are better off in Las Vegas.
Earl
----- Original Message -----
From: Brian <bribri@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Wednesday, December 22, 1999 6:59 PM
Subject: [RT] GEN: Introduction and request for information
> Hello,
>
> I recently joined RealTraders, and so far have been thorougly
impressed with
> the quality of posts as well as the excellent knowledge that many of
you
> have shared. I'm happy to be here.
>
> I'm writing this email both to provide a brief introduction to myself
and
> also to ask for some general advice and information.
>
> My name is Brian, I'm 22 years old and live in Salt Lake City, Utah.
I'm a
> fourth-year senior at the University of Utah pursuing degrees in
Physics and
> History and a minor in Math. I am presently employed by eBay. I was
disowned
> and disinherited a couple years ago, because I left my parents'
religion.
> Shortly after this, my girlfriend dumped me, my friend died, and my
dog got
> hit by a car. My father must have felt guilty about this turn of
events
> because I received substantial amount of money. At that time I knew
very
> little about money, and I, unfortunately, decided to use most of it to
buy a
> house.
>
> Up until my disowning, I was given stocks and mutual funds by my
father and
> grandfather throughout my life. I retained these through my
disinheriting.
> These are mostly Blue Chip stocks and conservative funds. Some of
these
> shares have not ever been traded during my life. All are conservative
in
> nature and were bought with long-term growth and investment in mind.
While
> these belong exlusively to me, I made verbal agreements when I
received them
> that I would never sell them (I suppose 'never' meaning until the
benefactor
> dies) unless the long term viability of the company had changed. To
date,
> this has not ever happened and, at this time, I intend to honor my
> agreements. All have been at least moderately successful, from the
patient
> investor's viewpoint. (Patience being a virtue that I don't possess.)
>
> My knowledge of the market is generally very traditional. My father
> endeavored to educate me in economics and, as a result, I feel that I
have a
> good foundation of knowledge. Inclusion to this list has, however,
made that
> foundation appear much smaller than I previously thought. :-)
>
> Last July I made my first foray into day trading, blindly following
the
> advice of a friend. Three weeks later, I was out a little over
$10,000,
> mostly to fees and commissions on top of a few horrendous trades. That
> debacle taught me that never again would I find myself ignorant in
regards
> to a market I was vested in. I have conducted zero actual transactions
since
> July.
>
> After losing my money, I read a couple books, all of The Motley Fool
> archives, and decided that anything other than long term investing was
> basically gambling, and that I'd have better odds, not to mention more
fun,
> if I moved to Vegas.
>
> Then I made a friend who had then just begun option trading. In the
three
> months I've known him, he's gone from having significant debt to
quitting
> his job and paying cash for a nice house. In light of this
information, I
> reconsidered my previous determination and am now attempting to gain
enough
> knowledge and insight to follow his example.
>
> My short term goals are to make enough money to: 1) not have to work
any
> longer for someone else; 2) find it financially feasible to buy a
house near
> and attend Graduate School in Mathematics at Berkeley. (Thereby
escaping
> from Salt Lake Shitty.) My long term goal is to build enough wealth
that
> lack of money will never be a factor in decisions regarding my life.
>
> The successful option trader has given me a book, _On Track Investing-
A
> Guide To Simulation Trading_ by David R. Herbert. This book is very
simple
> and basic, but I have still gleaned some knowledge from it. Apparently
it is
> associated with Wade Cook. I don't know who that is, but from people's
> reactions I surmise he is the Amway of investors. At the direction of
Mr.
> Herbert, I have been conducting practice trades.
>
> In light of the recent posts by Clyde and Earl, I have ordered
_Technical
> Analysis of Stock Trends_ by Robert D. Edwards, John F. Magee.
>
> Currently I am interested in Options. I like the idea of knowing my
maximum
> loss when I enter a trade. I ground away noticeable amounts of my
teeth
> while half-sleeping in July. I'm the first to admit, though, that my
> interest in Options is probably due both to proximity in addition to
lack of
> knowledge of other strategies.
>
> Basically, I'm pretty ignorant about everything. :-) I'm looking to
learn
> anything and everything I can which will help me to reach my
objectives.
>
> Given my goals and history, are there any strategies that anyone might
> suggest?
>
> What resources would you recommend? (Books, websites, etc.)
>
> What programs are the best? TeleChart 2000 was recommended in the Wade
Cook
> book.
>
> I appreciate your time in this matter. All responses are very
appreciated.
> I'm looking forward to belonging to RealTraders.
>
> Regards,
>
> Brian
>
>
>
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