I followed this thread up until the point it became a pissing match between a steve multi alias and mandlebrot and trader666. I've not gotten much out of the thread since my last post, other than to expose an attention getting alias.
That isn't Steve46 goofball, it's a multiple-alias of ProfLogic. I know it's hard, but try to keep up.
Quote from bwolinsky:
Other than that, I guess the theme of the thread is still in the first post. Now the how to be a guru in 5 hard steps has to be proven, and the only site that you can do that on is available at covestor.com, but the real issue is that real results don't look quite as good as hypothetical ones, but that is just because that real results factor in unforseen circumstances applicable to each specific trade. Anyway, at some point I will be on that site as a vendor, and I'm working on it currently.
Considering your performance on your thread, those noobs who sign-up with you are just asking to have their time wasted and their money lost.
But please continue trying to pretend that you actually know what you are doing, it's incredibly amusing to watch.
I sell education to beginners. I provide outstanding education at a very low price.
OK. I see it's attack time on me. You must remember one thing. I was dragged into this forum involuntarily by the ignorant OT. I'll try to respond.
So you SELL EDUCATION, therefore you are a guru.
NOT TRUE. A guru makes predictions, forecasts and tells you specifically how he/she thinks you will make money.
I never make a specific recommendation. I teach rookies how to make sense out of all the option data available. In turn that allows them to understand what they are doing and how to select a trade that is appropriate for this risk tolerance, experience, and pocketbook. I do not pick trades for them
Your definition of 'guru' is incorrect.
you are at a higher standard.
without results to know your education is worth even one cent, or perhaps negative....the ENTIRE point of trading is to make money. whose to say your book has any value.
You do not understand the purpose of education. It is not my place to pick trades. It's my job - and I do it extremely well - to make the trader understand the alternatives, the pros and cons of a trade, the risk and reward potential, the probability of achieving a profit on a trade etc.
It's similar to public school. The kids learn to read, but the teacher is not responsible for what the kids read, what they do with the reading skills they acquire. That's up to the individual student. Some practice and work hard. Others think reading (or trading) is easy and go out and do something silly
The objective of trading may be to make money - and at the level of your ability to comprehend the process, you are correct.
But, the real objective in trading is to not lose money - and if you do lose, the losses must be kept small. The profits tend to take care of themselves - although people who do not understand risk have a knack for allowing a nice profit to turn into a loss through inaction - better known as poor risk management.
Cutting losses and managing all positions with skill is what determines your ultimate results. If you don't get it, I cannot be responsible for that.
My book is of great value to those who read it with the intention of understanding how to use options to earn money. It would be of no use to you because you already believe you know enough to hurl insults at someone who wasn't even posting on this forum. How immature is that?
only profitable accounts will prove its worth. don't deny that, as we know you will.
You know I will deny it? Right you are. If I teach someone a trading style - perhaps how to trade iron condors, that student understands the pros and cons for choosing front- month options vs. options that expire in two or three months; that person understands why it's foolish to sell options that are very far OTM and provide little profit potential; that person understands whether a double diagonal would be more appropriate than a straight iron condor. etc etc etc.
Now I have no control over how the trades will come out. I have no control over risk management - which, as I keep explaining to you, is more important than any other aspect of the trade. I have no control over whether the student will take his profits or gamble them away in an effort to earn the maximum possible profit.
In fact, not only do have no control, I don't even know what positions were traded. I don't sit over the shoulders of my readers. I teach them how to use options. I reply to follow-up questions to provide additional guidance. I have no idea whether they make money - unless they choose to tell me.
My guess is that like any rookie, their results are mediocre at first. But with the ability to understand what they are doing, they learn fast. And, if following the good advice offered, don't go broke. They are well placed to succeed.
Succeed. That's the goal. The strategies I teach are not unique to me. Iron condors are often very profitable, at and other times are losers. The objective is to limit those losses.
I don't teach 'a method' so the results of my students cannot be measured. Despite your need to see a P/L statement, there just isn't one. Nor can there be one. You just do not understand.
But I get it - having a discussion with you is not a possibility. You have your mind closed and I'm sure that suits you well when you make all those trades in a paper-trading account.
To any option rookies: visit my blog to see what there is to see. Not all posts will be of interest, but there are excellent tips among the posts.
so you are selling education but won't prove your education results in profits?
As I explained, it's not possible.
i sell a book on how to educate people regarding making corn.
then people ask, does it work?
HOW DARE THEY ASK ME THAT!!!!
A foolish comparison.
Ask me how it works and I'll tell you that my readers are very happy with the book. I get nothing but accolades. I don't see their P/L sheets, but if the readers are satisfied, what more can I do?
just another guru who will do anything to hide his "results"
Making no market predictions, I have no results to show.
Don't you get that?
keep talking about everything else...you're right, traders don't care about making money.
oh, they do...
so maybe they need to see that education means money, since you charge for it.
keep avoiding the point.
I have answered to the point several times in this post. There is no record to show you. I do not recommend trades, so what is there to show you? Nothing.
I don't see the trades of those whom I educate - so again, there is nothing to show you. It's you who are avoiding the truth. And I am not a guru.
I never said that traders 'don't care about making money.' You just made that up out of thin air. What I say, and what I believe is that making money on each trade is not the goal. Making money over the long-term is the goal. To succeed over the long-term, positions must be managed well. That translates into owning positions with sufficient reward for the potential risk and sufficient chances of earning a profit on the trade. Ignore risk and you are gambling. That may be what you do, but I am certain that my readers understand that gambling with options is rather stupid. There are good methods to make money when using options - and with a risk/reward that makes the trade acceptable.
I just love when people who don't get it resort to 'LOL' or insults.
Are not one of the (many) pretenders and (multiple-alias) frauds that populate ET and look to sell their services and wares, or make incredulous statements purely for the sake of their over-blown egocentricity.
When flame war ends and the trolling stops, I hope your post(s) will remain for those who come behind me to read and understand your wisdom.
ET is like going treasure hunting on a beach with electronic metal detector ... every now and then you just might find something worthwhile.
The numbered comments below are my (Mark) reply to a post:
1) You do not get assigned on out of the money calls. If the stock goes down, the ATM calls become OTM calls and there is NO CHANCE that you will be assigned.
2) Selling OTM calls results in even larger losses than selling ATM calls. Thus this is a bad idea.
3) Yes, writing covered calls entails some downside risk. Thus, it is important not to adopt that strategy with your entire account.
4) But more than that, your question tells us that you do not understand what a covered call is - or how it makes or loses money.
5) When you write a covered call, it is a very good result to be assigned an exercise notice.
Do you truly believe the above statement is a correct and appropriate one for any stock trader to follow your advice, without bearly any risk at all?
Yes, it's possible to get assigned on an OTM option,. But if you had read the post to which I responded you will see that in the context of the question, my answer is correct. The situation was described as writing at ATM COVERED CALL and seeing the stock tumble. In that scenario, there is a probability of zero that you will be assigned an exercise notice. That option is far, far, OTM
It happened to me one time. I was assigned on a 15 call and the stock closed at 14.99.
Yes, I believe those statements are correct and offer the correct advice to the person posing the question.
So Fontanills below was/is wrong, and you've been providing to novice traders/ investors better financial advise than him (aka: Optionetics), in order to manage risk!
Optionetics is a farce. They charge thousands for seminars that mislead beginners into believing two things: that it's easy to make money with options and that more costly seminars are required.
Optionetics is bad for the industry. It does a major dis-service to people who place their trust in them. They overload the novice with information, essentially paralyzing them.
And they charge thousands of dollars. Bad idea.
And a trader following your advice above can be safely bet his house (plus his wife and kids) following your advice, in order to make money, and lots of money just like you did/do (" I'm going to make lots of money from my positions, unless something bad happens." )!
I clearly state whenever I can that risk management is THE essential skill required for success. Thus, by definition, one never bets the house, or even a significant portion of it. never. The fact that you suggest the possibility tess us all we need to know about your reading comprehension skills.
You are good at two things: disrupting boards and making ridiculous statements.
Regarding the quote in parentheses, that is the point of risk management. You own a position, If it works well and you take your pforits, then that's that. Position closed and all is well.
But if 'something bad happens,' that;s the time that an intelligent trader or investor does not sit on his/her hands hoping for a good outcome. That's the time for skilled and timely risk management to come to the rescue. When bad things happen, or are threatening to happen, that's when risk must be is reduced. The position size is reduced, or perhaps closed completely. Or adjusted to reduce risk. Something intelligent is done at the time that it needs to be done.
That's risk management.
That's what you do when the initial plan: to make lots of money - goes awry.
Closing your eyes and hoping things will turn out well is just a bad way to trade.
I teach people how to handle these situations.
Fontanills (Page 73, the Options Course): "There are odd times when assignment will take place with slightly OUT-of-money options or options with time value remaining. These are the exception, however, and relatively low-probability events." [/B]