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..one of the ways I look at risk, and also hate to lose money on, is being right in concept, but wrong on timing..as I said, this is a somewhat philosophical discussion...but, I hate to admit it, but poor old James" I'm going broke but the hell with it"' Fink has come up with something I agree with....this co gets caught in a general mkt downturn/ bear mkt for a series of months, and your july calls, deep in the money, go to zero, yet I make a multiple bagger over 18 months as the fundos win out, and the stock reaches my 100-200 price target..yes I have paid for that with time premium, but I feel I have exponentially lowered my risk, decreased my cost of capital, and increased my ability to sleep...there is short term risk in EVERY equity investment--the shorter the term, the higher the risk...you just have to work out your own strategies to be comfortable with that risk, and not get shaken out for the wrong reasons IMHO |
