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I don't trade options often and when I do, it is a very small percentage of my account value. It's usually more for fun. I can still apply my current strategy to options, but there is still a lot of luck involved, which is why I don't do them often or in large amounts.
Unfortunately to a large extent I depend on the idiots to manage my money and investment funds. I am retired and enjoying my life. I don't need to work researching, buying and selling. Mostly I look at the market to follow the long term trends so I can alter my allocations and overall strategy as appropriate. I am certainly untrained and no whiz at investing. I was able to avoid the 2008 downturn by moving a major portion of my portfolio to cash before the drop.
I don't want to be a professional investor or advisor. I am merely noting the idiocy that seems rampant in these fields.
The worst idiots for me are those who propose dividend stocks or REITS as a substitute for bonds in a balanced portfolio. A lot of financial advisors do that.
The worst idiots for me are those who propose dividend stocks or REITS as a substitute for bonds in a balanced portfolio. A lot of financial advisors do that.
Because it's not a balanced portfolio anymore. REITS and div. stocks are still equities, with all the risks equities carry. If someone wants to invest 100% in equities and not look at their portfolio for 20 years, that's fine, but those are not the kind of people I'm referring to.
I don't trade options often and when I do, it is a very small percentage of my account value. It's usually more for fun. I can still apply my current strategy to options, but there is still a lot of luck involved, which is why I don't do them often or in large amounts.
You need to trade options more often, trust your instinct, and win like me.
You just got to pick the rich stock, at the right price, and predict the right time it will tick up a little.
Oh, is that all, lol! You've got to be right THREE TIMES on one stock to make money? If I could do that on anything even approaching a regular basis, I'd be on the beach right now enjoying a few cold ones. No thanks.
How does market react to news is something one has to monitor, ...
Why?
In the long run ( over a couple of weeks for this definition ) the news doesn't move the market. Only conditions.
Oil and the dollar fluctuate on news, but in the long run, only the old news moves it. Oil is being overproduced. The US is importing less stuff.
You can't point to anything on the chart of AAPL that shows some new news. It didn't go up on the iPod, the iPhone or the iPad or anything else. It goes up because business is good over time.
The news just gives people a chance to pick up something they already wanted at a bit of a discount or to sell something they were already thinking about selling for a couple points more. If you are in options, it's usually a great time to enter/exit.
Only a dumbsheet buys just because something about a company was announced on the news. The same for selling on some bad news. By then, it's already to late.
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