DJ; RE:" Burger, Fries and a Coke "
Well, you're in a good mood, there in Chi-Town, Professor! I wish I wasn't with you - I wish I was right here where I am: MadameGonzo is returning home tomorrow!!! (^_^)
LEAPS on indices shouldn't lose (a lot) in the long run. I mean, you do the Juri-Janko thing (buy 'em deep in-the-money) and then do the Berney-Banko thing (just roll 'em over and out like a freakin' machine; ie., never sell that 1 share of MRK - go deeper if the market goes down, etc) and then do the TommyG-GonzoSteve thing (short-term trade with your margin, if so inclined).
I been thinkin' about this a lot, Professor. If'n we invested $20K in the SOX.X, instead of INTC, we'd be better off in the long-run, (I mean, the SOX.X is heavily weighted by INTC - DRG.X is PFE & MRK, etc), and we could always fiddle-faddle trade INTC or PRIA or something, if'n we wanted to.
Same goes for DRG.X - today everybody's chasing after PFE, LLY and WLA - like, drugz did well last quarter and all that. (Meanwhile, the TechStox is hottin' up). I look at these sector indices, and what I see is, they don't go down a heluva lot - they just grow relentlessly (in the long run).
An old friend of mine in The City, who has just sat on CCI and some C-D's for years, asked me to set him up to trade stox over the internet, "like you do". Jesus! What do you say - "NO WAY!" or what? Broke his heart when I told him, "Hey - I'm just sitting on these things like you do, man - from time to time I dink around trying to pretend that I can pick the next horse or something. But the main stuff is just sitting there, growing - "it's like watching paint dry, man".
So, I thought, WTH, Ren‚ - here's whatcha do. You ain't gonna do no options, that's for sure. [ oooh - Mister Tambourine Man just came on Radio Paris! - oh, sorry ] We'll buy 100s of all 17 WEBS around the world. We'll buy 100s of SPY - and you will never sell this shit. Now, you've already beat 80% of the money managers around the world, and you will make more $ in the long run than the C-D you're sitting on now, for sure. You will be heavily weighted by the USA with SPY, and you will have the top performing EU countries weighted for their emerging laissez-faire capitalist markets (like Germany, Netherlands, Italy, Spain, etc.) You'll be diversified all over the place, and you will make some $ every year.
Now, buy 100s of DIA, Diamonds. This will double your USA weight, which probably makes sense. Also, whenever you wanna buy some stock for awhile, you gotta sell some diamonds to do it. And whether you make money or not, when you go out and chase Yahooie or Pfffftitzer or whatever, when you sell that stock - you gotta buy that amount of diamonds back. You'll always know how much money you made or lost trading by the number of diamonds you got. Lose all your diamonds, man - and you can't trade no more, got it ?
Wish I'd started that way. Anyway, we'll see how it works for him. Oh yeah - The BritBoyz are all playin' long strangles on the FTSE - they're betting on volatility; they lose if nothing happens.
-Steve |
