rocketman...the post i responded to was "no safety in dim calls"
for this market, not many strategies....hard to out guess what could be either a selling mania or the beginning of a basing....either way with options as they are finite, the avoidance of nearer term is prudent. i'm out on most of my positions (short puts) to jan 2001....some above, some under, and if assigned i have the cash...when the market reverses, and it always does, i will close the jan 2000 at profit or break even, and begin setting two month cycles. i lost on april positions, but the loss partially offset the gains of selling all my common. basically i'm up year to year, even with january, and rife with cash.
don't feel compelled to always do something, it's a bad bull market habit that will decimate you in this type of temporary market....better to sit patiently then walk across hot coals....
ltb+h is just that...the buffett way....but most who preach on these threads don't practice....how many have held a stock for more then five years...very few....this strategy must be kept separate and not merged with trading...too easy to negate discipline and lose 2/3 of your assets...always take money off the table, invest in tangibles that give you comfort....and allow you to sleep at night.....just like a roller coaster...silence and anticipation on the way up....if you are in the last car, you don't know the top has been reached until you plummet earthward screaming....makes ya wanna vomit at times?
learn the height and breadth of the roller coaster, this way you know as it approaches the top, keep your ears keen to the screams of those in the first car...and eat lightly! |
