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

To: Knighty Tin who wrote (87536)	12/24/2000 11:53:29 PM
From: mishedlo	Read Replies (1) \| Respond to of 132070

Thanks, Mike I was considering going about 35% loaded in my IRA as LTSH (long term sell and hold via puts). I would very much hate to lose that, so That is why I will be going the leaps route on financials. In my trading account, cash is king. 10% max. Reasonable enough? PS my IRA has about 2.5 times the money as my trading acct. M

To: Knighty Tin who wrote (87536)	12/25/2000 2:51:03 PM
From: Bilow	Read Replies (1) \| Respond to of 132070

Hi Michael D. Burke; A couple of comments. First, if it is the case that an investor has an income flow that he can use to reload if he is wrong, then you can analyze this situation by thinking of that income flow as an asset, maybe a reverse mortgage or something. If you do that, then the usual rules for limiting risk to a low percentage of total assets applies as it does for an investor who can't recharge. Second, about buying puts on Micron when it was obvious that it was going down... Heck, if it was that obvious, then it would have already gone down, and there would have been no possibility of an advantageous trade. That's the basic reason why an investor who is going against the herd has to budget his risk in such a way that he can make money despite the moves against him. There is no such thing as a sure thing. Happy holidays, I'm out of here for a week. -- Carl