That will depend entirely on leverage. Their are two separate risks here: one is the risk inherent in put selling which is fixed and known at the time the puts are sold. Selling puts, contrary to popular belief, can be a sound strategy for obtaining consistent profits in most markets. Using excessive leverage to produce exceptionally large profits is a dangerous strategy that can lead to ruin.
Jesse Livermore does not deserve the respect he gets as one of the best traders of all time. He blew up countless times and took massive risks --->>> "Boy Plunger." He made most of his money through manipulating the market, not trading it. The regulation that came after the crash ended his career because he could no longer manipulate the market to get his edge.
I haven't post for years but I feel this overwhelming urge to respond to MarketSurfer 's ludicrous assetsion that victor is a top trader, you are almost redefining the term, I just can't believe you said that, how bias can u get? you acknowledge he blew up two times and yet you still consider him a top trader, do u know what define of a top trader? He may be a top writer (his books are very good), a good educator and a good come-backer...but definitely not a top trader... a good, not even top, trader never blows up... top risk management and iron clad discipline is what defines a good trader. Not to mention being objective and open-minded, victor can never be a good trader because he is too arrogant (he really enjoys mental masturbation, read his books), emotional (you can see it in his desciption of trading) and never admits his errors( he justifies his blow-ups), which is why he makes again and again. You two have been bashing trend-followers since forever and those guys are making 50% in 2008 and manages billions more than Victor. When the facts change, change your mind, wake up..man.. Ever wonder why you are still here on the forum after all these years and never made it? It's the same reason you believe Victor is a good trader, the same reason you believe trend-following doesn't work, you are simply detached from reality...but the markets needs people like you, they can't funcion without losers...
He doesn't deserve any respect at all, a top trader don't blow up..period...all these mention about trader who blew up indicates to me that you guys believe trading is about high adrelalin and having the balls to take big risks and making big money...as if blowing up is a characteristc of a top trader...it's just unbelievable.....but I forgot this is a public forum and I am addressing retail guys...believe what u want... top trader : Jim Simons...period (if medalion's returns is real)
All traders blow up sooner than later. All those mentioned except Cohen have blown up one or more times. That is like taking the title away. You cannot be great and a loser at the same time. The best traders in the world are those who have a good idea, make an IPO and go public, exchange paper for money and make a fortune. This is trading at its ultimate level. The best traders are the public company stock issuers, whether you like it or not.
6 pages of this.....and no W.D. Gann??? ""One of the most astonishing calculations made by Mr. Gann was during last summer [1909] when he predicted that September Wheat would sell at $1.20. This meant that it must touch that figure before the end of the month of September. At twelve o'clock, Chicago time, on September 30th (the last day) the option was selling below $1.08, and it looked as though his prediction would not be fulfilled. Mr. Gann said, 'If it does not touch $1.20 by the close of the market it will prove that there is something wrong with my whole method of calculation. I do not care what the price is now, it must go there.' It is common history that September Wheat surprised the whole country by selling at $1.20 and no higher in the very last hour of trading, closing at that figure." "Yes, we have made a great deal of money. Gann has taken half-million dollars out of the market in the past few years. I once saw him take $130, and in less than one month run it up to over $12,000. Gann can compound money faster than any man I have ever met." During the month of October, 1909, in twenty-five market days, W D Gann made, in the presence of our representative, two hundred and eighty-six transactions in various stocks, on both the long and short side of the market. Two hundred and sixty-four of these transactions resulted in profits ; twenty-two in losses.
I vote for "Nails"..you know..Lenny Dysktra. Cramer said that "he is one of the great ones in this business".
There is only one answer: George Soros, period. There is none other in the same league. Some of the names mentioned on this board are truly laughable.