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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: RR who wrote (60251)	12/28/2003 4:24:29 AM
From: Jill	Read Replies (3) \| Respond to of 65232

RR, if you mean some of the threads that think the $ is crashing and the world is coming to an end, I think they're just bear market guys who haven't adjusted to the fact that the bear market is probably over. Also a bunch of those guys were goldbugs and although gold has done well, the stockmarket has done better in the same period. So to justify their goldbug behavior, they have to believe the $ will crash, proving them right after all--not us regular folks who watched stocks recover. People seem to have a hard time adjusting their psychology as the market changes. It is hard to be flexible and neutral. Or maybe you are speaking of other threads. I decided to do a little gamble, very small. It is the opposite of all I've been learning from Teresa. She teaches to use ITM options for swing trading, and she went through it the other day in really good, logical detail--using the average bar length for the last week, taking the current price, subtracting that average length, finding the nearest ITM strike price from that. She explained time premium for the nearest strike prices and why a certain strike price was best because even if the trade went against you, you could get out with a large portion of your $ intact, partly because time premium was not involved. OTM options can vaporize before you blink. Nonetheless, I bought some Jan 05 OTM options on rambus. Really cheap. ITs a pure gamble and just a kind of throwaway. I just felt like doing it, lol. But at least its just a little blip, not an investment strategy. I can't remember the last time I did that, set a limit order on OTM options and waited for it to come eto me. I remember the qcom days when that reckless strategy worked like a charm. Anyway, I only dipped a toe in, so it doesn't matter either way really, it's just for fun. I also opened an account, finally, at INteractive Brokers. Not only are their prices mega cheap, they allow all kinds of trading including futures and allow you to hold your cash account in various currencies. Thus for instance you could hold it in Euros, taking advantage of the current (intentional?) slide of the $...etc. Not sure if I will be doing that at this point as most of the decline has already occured altho Templeton predicted a 40% drop overall. I think the guys in the know, they talk to each other. IT's just a policy right now, its intentional. I really don't think these things happen by chance. Some may disagree with the policy but i thas both its benefits and drawbacks for the US; but a private investor/trader can take advantage. Okay, back to sleep!