Hi Mike,
It would be great to pretend we are experts in this stuff, but we aren't. Options Jerry is doing better than I at this point so he can jump in and give you his approach.
The newsletter comes out the third Thursday of the month. I get up early Friday morning (usually 5:30 EDT) and call in to get the picks. I analyze them and usually do nothing at that point. From what I understand in talking to Jerry... his approach is similar.
Over the weekend, I do more work and discuss some of the picks in coded form here on SI (using #1 to refer to Bernie's first pick in the aggressive portfolio and so forth.) Then, based on my own review, I develop a trading plan (sometimes formally, sometimes only in my head) and act when the plan says to act.
For example, I am in HM puts and will exit them probably within the next 2 weeks unless something convinces me otherwise. My next buy is his latest #2 once I get some good signals saying it is okay to buy. My objective is to buy this option at 1/2 of what he says... When he was forecasting a move in GLX (not a current pick), I did the same thing and, had I not chickened out, would have tripled my money in it... as it was I made 30%... not bad for 3 days investment, huh.
Both Jery and I have found that it is sometimes more profitable to wait on some of his picks to buy in... and as long as you have the TA skills to do it, you can vastly improve on the risk reward ratios of his picks... IN MY BLIEF... Now don't go out and buy a lot of expensive software on MY say so and plunge into this the way we are trading... THERE ARE ABSOLUTELY NO GUARANTEES THIS WILL WORK OVER THE LONG HAUL OR AT ANY TIME!!!
What I believe we have going in our favor is that we are starting with his picks which have a track record of being right enough to make money on his recommendations AND we pick the best of the best to improve our success ratio. Whether you or anybody else out there can duplicate this feat is open to conjecture and even we may fall by the wayside if our approach fails us.
The recommendations I DO have for potential investors in Bernie's picks are as follows:
- go slow at the start, use very little capital to try his picks;
- DO NOT invest in any picks which go against the rules he gives you;
- if you MUST deviate from his suggestions... go longer and deeper in the money. AND DO NOT FIGHT THE TREND!!!
No guarantees on anything.
Regards,
Bill |
