I posted this on another board, but thought it applied to AMZN as well.
Enjoy.
<<a) puts on Internet stocks are a ridiculously expensive example, as I said, so all bets are off on them even as puts..>>
Well, nowhere else do I see such a discrepancy in future value and stock price.
<<b) I teach people to do NO options unless one can lose all the money invested, immediately, with NO financial nor psychological effects,>>
That's what I'm saying. I've got a few thou' on the side I can throw into the trash and not even think once about it. No, I won't give it to you, though. :)
<<c) my min. acct. when I was a VG broker, was $ 15- 20- 25K, spread among at least a few positions--- or not at all, dig ? don't take this the wrong way, but if all you have is $ 2,000., as nice and deserving a guy as you are, sorry, I cannot help you....I do not believe in taking that kind of a "pressure-wish-shot".... period.>>
No pressure, if you do it right. Look at IOM. Anyone could have seen at $40 that the stock would never hit $70 again. At $20, you could tell it would never hit $50 again. At $5, you figure it's about fair value, if not slightly over-valued. AMZN and YHOO and BCST are going to fall. No pressure, no strain. Wait until after you see the top and ride the slide. Easy. Painless. Lose it all? Who cares?
<<d) you might also want to concentrate on earning more in your chosen career, to accumulate the $ needed, which I wish you well with...>>
Well, sure, if I'm not a trader, which I ain't. I'm an investor, a long investor, as I stated. I've got 2/3 of a year's salary saved up in stocks. Not bad for a man of barely 27, eh? Think of what it will be when I'm 50? With only spending 50 hours per year on my investments? I'd say that's about 1,300 hours spent to earn, say, $1 million over 25 years. Can you beat that with your worthless friggin' PSYCLE(sm) theory? I put in my productive years at a career I love, and make my retirement money on something else. I get my cake and eat it too. Dig?
But, when you see an AMZN, or a YHOO, your mouth has to lose control of its saliva, just a little. So how do you capitalize on a drop you absolutely know is going to happen? |
