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I wouldn't advise options to anyone not trading full time profitably since a
number of years. The number of people making money there in the long run,
including professionals is amazingly small. Buying options is almost a sure
receipe for bankrupcy medium term if you don't know how to trade the cash first.
Selling options is a sure receipe for bankrupcy if you don't know how to make
money buying them first...
In a word, I can only advise the average trader investor to stick to his cash
positions, eventually write calls on these etc, but don't start trying to time
anything with puts, calls, warrants etc, this will bring lots of sorrow and you
won't even understand what happened.
Gwenn
Ira Tunik wrote:
> It is not pitting ones own belief and ego against the markets. It is
> utilizing ones skill and knowledge of the business of tradign that counts.
> As I have said many times, knowledge is power, and the proper use of it will
> give success. You can make more money, in a shorter period of time, in a
> bear market or falling market then you can in a bull market. The key is
> knowing how to do it with limited risk. Try utilizing options in your
> strategy and you will find that the risk is less then owning stock alone in
> a bull market. Even with the disaster in the NASDAQ, you haven't made a 2/3
> retracement of the 98 low. Therefore, technically, according to some
> theories, you are still in the bull phase. I have support at 3000 to 3030
> and we hit within 12 points during the week of the 26th of May. I am not
> saying that we are in for another bull market, but if this is a bear, bear
> market rallies can tear the shorts apart. These rallies are short, they are
> violent, and they stop when least expected. So if you are short, CYA. If
> 3000 doesn't hold, 2550 is next. Risk is a function of money management.
> Understanding the tools that you have to manage risk and still allow for
> unlimited profit is part of being a professional. Good luck in either
> market direction. Ira
>
> Gwenael Gautier wrote:
>
> > Investing in solid, well managed companies dominating their sector,
> > itself in a strong growing trend within a growing economy in a peaceful
> > world may not be the absolute certainty for profits always, but long
> > term you will not lose much doing so, while trying to time a bear market
> > in and as out is like trying to figure out how far a dog will run back
> > and forth and how long before it comes back to you. YOU WILL NEVER KNOW
> > BEFORE, AND THAT IS A TRULY LOSING AND EXPENSIVE METHOD. Besides,
> > selling short you may lose more than your equity, that is not a prudent
> > thing to do....
> >
> > I can only warn anyone from trying to pit one's ego or own beliefs
> > against the markets. That is definitely a most effective way to get
> > seperated from one's money real fast and brutally.
> >
> > Gwenn
> >
> > James Taylor wrote:
> >
> > > When the water level falls, all boats go lower.
> > >
> > > Hunting and hoping to find stocks that will go up in the face of
> > > a bear market is a recipe for losses.
> > >
> > > You should be searching for the best short sale candidates.
> > >
> > > Best of luck buying in this market.
> > >
> > > JT
> > >
> > > ----- Original Message -----
> > > From: "John Corrion" <corrion@xxxxxxxx>
> > > To: <realtraders@xxxxxxxxxxxxxxx>; <AIQ-Trading@xxxxxxxxxxx>
> > > Sent: Friday, May 26, 2000 6:46 PM
> > > Subject: [RT] Sector Rotation
> > >
> > > > Hi Guys,
> > > >
> > > > Anybody having any success determining the sectors that
> > > > may be up in the next rally? I have heard that
> > > > Fidelity is concentrating on wireless companies, is
> > > > there a list of these companies?
> > > >
> > > > Everything I see basing tends to be defensive and not
> > > > prone to great price appreciation.
> > > >
> > > > Thanks,
> > > >
> > > > John
> > > >
> > > >
> > > >
> > > >
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