Silicon Investor (SI) -- The First Internet Community

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.

Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (29984)	8/21/2000 2:51:15 PM
From: RocketMan	Read Replies (2) \| Respond to of 35685

If you want $500 next month you don't have to buy 1,000 shares at a higher price. You are still getting 10% on your bulk of money. I understand, but if your underlying vehicle is drawing down, eventually you will have 10% of nothing. Again, the problem is that when the vehicle goes down, you are still using it as a source of cash, by selling against it. But when it goes up, your vehicle is not appreciating, because you will be called. So your underlying vehicle is slowly depreciating, and eventually it will be worthless. I realize that this is not what V or others have recommended. In fact, you have to worry about repair strategies on the way down and up, about when to buy-sell and when not to, what vehicle to use, etc. I think the problem is mine, I was hoping that one could do this sort of mindlessly and go sailing or fishing. In fact, this requires attention to the market, and sounds like more trouble than just doing LTB&H. Then again, maybe I just don't understand. I've only read one chapter of McMillan.