Thursday, January 17, 2008

Patience Is Key

I read that the most successful speculators...rarely trade in a bear market. it impresses upon me the need to see this whole year in perspective... most of my puts are in the March/April expiration. the Fly mentions the market indeed has room to fall 13-20% year to date...he notes weʻre at 7%.

I have been trading earnings... buying puts... in addition to Mar/Apr puts. the thing is... it requires getting up early to close for profits. i must say, iʻm tired... maybe itʻs the Shalacking i got with MacWorld... still iʻm trying to limit my trades.

i added AMD sometime today to my puts... maybe that was not worth it. itʻs green right now, but weʻll see if the bounce wipes that dry...

1 comment:

Gio said...

That is very true. The real bear traders short on spikes and just let the stock die. Bear markets are very very boring. I haven't officially traded during one, but I have two friends who have. I've only paper-traded the 2000 massacre of the Nasdaq. I think the dangerous part of bear markets is that Puts can be heavily discounted, for example, I read of a fund manager buying loads of puts on the Japanese economy during the 80s... it fell so hard, that no one was even bidding on those puts! I mean, someone has to be willing to buy. Anyway, even though it went down, they lost because no one wanted the ASK. How's the book going?