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TranceAddict Investors Club @ Marketocracy (pg. 186)
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| Shakka |
| quote: | Originally posted by Nrg2Nfinit
said it once and ill say it again. The best way to make money is to write options.
Why do you think insurance companys make so much money? |
Because they collect on the front end, just like with options (only options can be a lot more risky if you don't know what you're doing).
I've noticed that average investors have really plunged into the option writing strategy. I understand the appeal of it, but I can't help but fear it's going to end badly for a lot of unsophisticated people who really don't understand what they're doing. |
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| atbell |
| quote: | Originally posted by Shakka
Because they collect on the front end, just like with options (only options can be a lot more risky if you don't know what you're doing).
I've noticed that average investors have really plunged into the option writing strategy. I understand the appeal of it, but I can't help but fear it's going to end badly for a lot of unsophisticated people who really don't understand what they're doing. |
Nah, the best way to make money is to spot massive dislocations and place bets accordingly. That's right out of Sorro's play book.
I actually logged into the Marketocracy site again and tinkered with the faux portfolio again. I did some searching on the NYSE site about ETFs because that's the granularity that my macro reading works best on. Into fxa, fxc, fxe - Auzi dollar, Can. dollar and Euro ETFs. Also GLD is some kind of gold fund.
Still concerned about a fall in US$ value relative to almost everything. QE2 is going to be pushing for that but Brazilian and Chinese currency controls will hold it back, making the bubble bigger and bigger.
I've begun considering the possibility of another major failure in the US but I think markets are going to be relatively quiet until next Jan at the earliest. The election is drawing a lot of attention and financial reporting is suffering from a general blah. |
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| spdandpwr |
| So I started a new fund back in 2007 and for some reason it never got linked to the ta investor club. In an effort to bring that fund into the ta club, i decided to remove my membership and now I can't even access the ta club...how do i fix this? |
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| Comrade Stalin |
| What's your marketocracy screen name and I'll send you an invite. |
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| spdandpwr |
| quote: | Originally posted by Comrade Stalin
What's your marketocracy screen name and I'll send you an invite. |
spdandpwr, thanks |
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| Capitalizt |
| sold all my SLV today.. It had a great run..but I feel so naked now. :( I still think it's going to $30+ so I'm hoping for a short term crash so I can rebuy. With QE2 however, I'm not sure it will happen. |
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| Comrade Stalin |
| So you're all cash ay? I am too. I made 5% in October ^_^. |
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| Capitalizt |
| quote: | Originally posted by Comrade Stalin
So you're all cash ay? I am too. I made 5% in October ^_^. |
pshh..I made 5.5% today alone. Of course my diversification is at 0% but still ;) |
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| Comrade Stalin |
| Hah! Talkin' ay? Let's see who does better by year end. :p |
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| Shakka |
| One of my best stock picks of the year is up close to 20% today. I'm up about 125% on the trade for the year. |
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| Comrade Stalin |
| quote: | Originally posted by Shakka
One of my best stock picks of the year is up close to 20% today. I'm up about 125% on the trade for the year. |
Congrats, I'm sure your boss is very pleased. What do you do to protect your clients' or firm's capital when markets are being pummeled? |
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| Shakka |
| quote: | Originally posted by Comrade Stalin
Congrats, I'm sure your boss is very pleased. What do you do to protect your clients' or firm's capital when markets are being pummeled? |
We use a long/short strategy. It generally can limit our upside in a bull market, but it also is a great way to manage downside risk (and make money in a bear market). As with everything market related, timing is everything! |
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