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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (84687)	10/30/2000 6:14:28 PM
From: Knighty Tin	Respond to of 132070

Tim, I put 90% of my cash in money market funds or T-Bills and, very occasionally, two year T-Notes, and use the other 10% to buy put and call options. However, the 10% is a one-time pool for the entire year, so if you lose it all the first month, you have 11 months to wait in the discipline. <g> The worst thing about option speculating is that you usually lose 100% of your premium when you lose. If that is all you have, you are out of the game. Disciplines like 90/10, 95/5 or 80/20, all of which I have used in the past, remove the loss that takes you out of the game before you hit the homeruns on the winners. 90/10 works best for me.