Point and Figure Charting Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Point and Figure Charting

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ms. X who wrote (87)	1/25/1998 5:23:00 PM
From: Ms. X	Read Replies (1) of 34808

Tom Dorsey on options... Never average down in options. It's the kiss of death. Consider Michael Jordan. Lets say he is a 70% free throw shooter. He is given a personal foul where he can take two shots at the basket. At 70% he is a 49% probability of getting both shots. That is .7x.7=.49. You as an investor have the same problem you have to successfully complete two indapendent events to be successful at stocks. You must buy the stock right and sell it right. If you are a 70% stock picker you have a 49% chance of success. In options, you take this two steps further. You must select the right expiration date and the right expiration price. If you can do both of those right 70% of the time you have .7x.7x.7x.7 or 24% chance of success. This is why it is important to use in the moneys as stock substitutes, buying time. This will eliminate the strike price problem and the expiration date problem and bring you back much closer to the stock itself. Tom

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next