<<I have been trading and doing very badly.>>
Lynn....stop!....Take a deep breath.......relax! remember RR's number one mantra...preserve capital. You mentioned trading and doing badly, so I am assuming you have been buying and then selling at a loss.....Time to step back, and rethink your strategy.....My guess is you, like many people, let your emotions control your trading...you buy something...see it go down, panic and sell, only to see that if you had been patient you could have gotten out higher, or even with a profit.
I suggest buying select companies and be very cautious.....and yes, writing front month calls sure can't hurt in this market...you either make money, or lessen losses by making some premium dollars whil stock goes down....eventually, stock goes back up, and all is well.....
Take a look at what your doing....dont follow or listen to others.......if you bought a company today, you must have liked it...if nothing fundamentally has changed, then turn off your computer and walk away from the market.....if you buy quality, that is already beaten down...it may go down some more, but how much sleep are you going to lose if you bought quality for cheap beaten down prices...who cares if you bought sunw at $18 and it drops to $5.....if down the road you feel the price will be back above $18, then just chill and let it happen and/or lower your cost basis bu buying more.....NO MARGIN.......
Anyway, good luck.....I thought you had stepped aside in december and have been in cash mostly and then recently you thought of shorting.........I am sorry to hear you are still getting your butt kicked, but rest assured that your not alone....I lost a ton on rmbs and those stupid rmbs may 75's I should have know better then to buy, and many share your pain.........all we can do is make our individual plan, and stick with it........Lastly, shorting is a far more difficult skill to master then going long...if your getting your butt kicked long, you will most assuredly fair worse going short...shorting is serious business....not for amateurs by any means.....
good luck and stick with the plan
Keith |
