lof... "picking a fight?"
if not agreeing with you is to be construed as be confrontational, then so be it. i read your total content, but everything that you have ever found success in, has been in a super bull market.
you are good with numbers, a 40% loss, would require about a 70% rebound to break even. it is not a matter of philosophy, but more the basic guidelines of prudent, yet aggressive investment.
at some point in your investment life, you will face a down trending market, one that even you can't turn back. and to apply your "rule of thumb" under such conditions would truly do severe damage to what wealth you have accrued.
the thread is about option investing, which due to their finite characteristics provide risk beyond the owning of the common. too many inexperienced, and i will include you among them, get caught up with the belief that this is the way the market is and will be, and double and triple digit gains are expected as an entitlement.......nothing lasts forever, better to learn about strategy, be it hedging or not, when all is well with the world. |
