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To: mishedlo who wrote (8922)	1/13/2001 7:58:49 PM
From: Sam Sara	Respond to of 13572

Terrific post. Agree 100% with everything you say.

To: mishedlo who wrote (8922)	1/14/2001 2:24:29 AM
From: Walter Xie	Respond to of 13572

Another very impressive piece, Mike. The number one rule, I would say, is to stick to one's tested trading strategy. Emotion management is the toughest thing to do on my part. Last Monday, I violated my trading plan as a result of badly managed fear, in return, I missed the second wave of the rate cut rallies. Evolution made the arrangement so that decisions can be easily affected by emotions and emotions can be easily affected by situations. It makes alot sense in dealing with our everyday life. We fear so to avoid danger; we greed so to take larger share of everything; we love so our last name can can be carried on, oops, so our genes can be passed on; we stress when we feel pressure; we happy when it's over, etc, etc. We naturally apply them into trading stocks even knowing how unnatural the market is. If it takes five days to learn the tricks, it'll take five years to turn into a trading machine. <g> More waves are coming, hope to catch them all. Remember "Laughing all the way to one's bank" used to be a popular ending of a lot of posts? Are we going to hear it again when NAZ makes its great comeback to 5000 this year? <g> W

To: mishedlo who wrote (8922)	1/14/2001 10:33:08 AM
From: rx4pain	Read Replies (1) \| Respond to of 13572

I might add...paper trade before you do anything. See first hand how the options move relative to the common. Look at both high beta and low beta stocks. Options are available on the QQQ's. Sometimes its easier to decide market direction than the direction of an individual company. Watch the spreads on options. Rx

To: mishedlo who wrote (8922)	1/14/2001 12:39:16 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 13572

Misheldo, you are learning, but you missed the basic primciple, time lapses, thus time premiums move against the buyer and in favor of the seller. In the long run (statistically) only the writers of options make money. Max pain theory proves it. Zeev

To: mishedlo who wrote (8922)	1/15/2001 12:58:38 AM
From: freeus	Respond to of 13572

Excellent post. I am not comfortable enough with the puts though and thoroughly disgusted with calls so I'll paper trade a while and see what I think. I believe we will see an up market for a while and it might even be wise to wait to buy puts for a few more weeks, I'm not sure. Freeus I can see buying puts when one has a huge profit, for insurance (it would have been a very smart thing to do last Jan-April, as my Vector vest service suggested we do) but not too sure about buying them for making money, though I know you have lately.

To: mishedlo who wrote (8922)	1/15/2001 2:16:24 PM
From: Brasco One	Respond to of 13572

great post.

To: mishedlo who wrote (8922)	1/15/2001 4:57:29 PM
From: Jerome	Read Replies (1) \| Respond to of 13572

Good Advice... but the people that would benefit by it will not read it.Just like prayers in school. I have done some option trading for the past ten years. It has been my program each month to invest 1% of my net worth in options each month. Because options expire on Friday, I use my list of possible plays starting Friday after the market closes (ususally from 5 to 15) and keep narrowing it down to the best three or four by Monday. Its been my observation that the plans either go terribly right for a few months, and then terribly wrong for a few months. Right now I have completed 16 consecutive positive trades of 100% gains since the week before Christmas.However, keep in mind that I had more than 16 consecutive wipe outs in the prior months. The losses don't phase me at all...its all part of the business. Regards, Jerome